This week, rates for mortgage loans with a 30-year fixed loan term had dropped to its lowest this year. The progressive decline in rates continued for six consecutive weeks. This is according to the The Washington Post report yesterday, September 7.
Average 30-year fixed rates dropped 0.04 on a week-over-week comparison, according to Freddie Mac. From 3.82 percent in the week prior, it is now at 3.78 percent low. It is also 0.52 percent down from 2017’s peak in March, at 4.3 percent.
However, this lowest rate so far this year is still a bit higher than last year’s average rate of 3.65 percent.
Also declining from last week is the average mortgage rate for 15-year fixed-rate loans.
It is now at 3.08 percent from 3.12 percent. However, this calculation doesn’t include extra fees which homeowners must pay to get the lowest rates. This short-term loan is used by borrowers who are planning to refinance.
In contrary adjustable five-year-term loan rates rose by 0.01 percent to 3.15 percent from the previous week’s 3.14 percent.
The Freddie Mac
Freddie Mac is formally known as the Federal Home Loan Mortgage Corporation (FHLMC). This is a Government-Sponsored Enterprise (GSE). A GSE purchases mortgages and bundles them into mortgage-backed securities. Freddie Mac funds banks, giving them the ability to make 30-year conventional mortgage loans to home buyers. Conventional Loans
Basically, conventional loans are originated by banks or lenders. It most likely that these institutions funded by GSEs. These loans are backed by the federal government or its agencies.
Despite being offered by varied lenders, conventional loans may appear to be similar to each other. This is because conventional loans have to conform to the rules set by GSEs such as the Freddie Mac. This is also why they are called conforming loans.
And because a conforming loan is structured, there are standard criteria a borrower needs to meet to be qualified for a conventional loan. These include, but are not limited to, credit requirements, minimum down payments, and standard DTI ratios. These make the loan ideal for borrowers who have good credit.
Begin Your Quest for Low Mortgage Rates Online
Trusted mortgage websites, such as Mortgage.Info, are credible sources of information for those would want to know more about conventional loans and other types of home financing.
Aside from conventional loans, you may also discover financing opportunities through government-backed loan programs such as those from the FHA, USDA and the VA.
The Online Mortgage Calculator is also a very useful tool to give you an estimated cost of a loan in just a few seconds. You only have to supply a few information to get you going.
Looking for lenders? Begin your quest online. You can get matched with a mortgage lender by filling out a short online form. Shopping for a lender is highly encouraged. Each lender’s requirements may differ from each other. Shopping will help you find one whose loan has favorable interest and terms.
While mortgage rates for long-term loans are at their lows, take action. Make your homeownership plans come true.