Marco Santarelli

MARCH 6, 2025

Decoding Mortgage Jargon: What Does It All Mean? Let's be real, the mortgage world is full of confusing terms. Let me break down some of the most important ones: Fixed-Rate Mortgage: The interest rate stays the same for the entire loan term. Predictability is the name of the game here! A lower DTI is better.

Mortgages

Marco Santarelli

APRIL 24, 2025

One of its main jobs is to keep the economy stable by managing interest rates. They do this by setting the federal funds rate, which influences what banks charge each other for lending money overnight. This, in turn, affects other interest rates throughout the economy. Shop around for the best rates.

Mortgages

Marco Santarelli

MAY 22, 2025

National Average: The national average for a 30-year fixed-rate mortgage is currently at 7.11%, showing a slight increase due to bond market activity influenced by President Trump's proposed tax bill. These rates are often based on very specific scenarios, like having an excellent credit score or paying points upfront.

Mortgages

Marco Santarelli

JULY 10, 2025

Decoding Mortgage Jargon Before diving deeper, let's quickly define some key terms: APR (Annual Percentage Rate): This is the total cost of your loan , including interest and fees, expressed as an annual rate. Fixed-Rate Mortgage: The interest rate stays the same for the entire loan term.

Mortgages

Housing Wire

AUGUST 7, 2023

The financial incentives are simply not there for mortgage companies that want to do more minority lending; therefore, it shouldn’t be a surprise that most banks and mortgage lenders do just enough minority lending to stay out of regulatory trouble but secretly have no desire to do much beyond that.

Closing

Housing Wire

MAY 3, 2023

. “The 2-year and 10-year US Treasury yields are down 2-3 basis points, which could help mortgage rates as the market digests the news and adjusts,” Jack Macdowell, chief investment officer at the Palisades Group , said. However, a higher interest rate environment can provide more opportunity for cash buyers.

Mortgages

Housing Wire

MARCH 10, 2023

Toohig adds that lenders are telling him that their customers “don’t want to do a new 30-year fixed-rate mortgage at 6.25%, and we’d rather do a smaller-balance HELOC [home equity line of credit] instead to improve their property.” I think in 2023, we’re going to see rates higher for longer,” Toohig concludes.

Equity

Realty Biz

OCTOBER 21, 2020

Mortgage rates are at an all-time low, but that’s just too bad for the thousands of potential home buyers who’re missing out on the action due to tighter lending standards. Last week, Freddie Mac reported that the 30-year fixed rate mortgage now averages just 2.81%, a new all time low for mortgage rates in the U.S.

Debt-to-income ratio

Realtor.com

FEBRUARY 2, 2022

But our mortgage and lending system can be especially challenging for retirees to navigate, simply because lenders prioritize income. And the lending and real estate laws can really differ. Watch your debt-to-income ratio. When you retire, your lack of income may scare some lenders.

Debt-to-income ratio

HomeLight

JUNE 22, 2023

And they need answers to their mortgage questions. Why must there be so many lending companies, all of which have different requirements and terms? As a first-time homebuyer, you’re likely among the 85% of buyers who will apply for a home mortgage instead of paying cash. That number will be your debt-to-income ratio.

Debt-to-income ratio

HomeLight

OCTOBER 15, 2020

Maximum debt-to-income ratio of 43% (this is known as DTI, and it looks at how much debt you pay each month versus how much income you bring in). Minimum down payment amount of 5% (or even as low as 3% for certain programs for low- to middle-income borrowers). Fixed-rate mortgage.

Loans

Marco Santarelli

MARCH 3, 2025

Here are a few key elements: The Federal Reserve (The Fed): The Fed sets the federal funds rate, which is the interest rate at which banks lend money to each other overnight. While this isnt directly the mortgage rate, it influences it. Inflation: When inflation rises, mortgage rates tend to rise as well.

Mortgages

Marco Santarelli

OCTOBER 14, 2023

According to Freddie Mac's Primary Mortgage Market Survey (PMMS) , which tracks the average rates for 30-year fixed-rate mortgages since 1971 , mortgage rates have ranged from a record low of 2.65% in January 2021 to a record high of 18.63% in October 1981.

Debt-to-income ratio

Realty Biz

MARCH 15, 2023

Mortgage Rates Interest rates had stayed low for a long time but began rising last year. For a 30-year fixed-rate mortgage, interest rates have averaged between 6% and 7% recently. With higher interest rates, mortgages are more expensive.

Debt-to-income ratio

Redfin

SEPTEMBER 6, 2024

Fixed-rate mortgage vs adjustable-rate mortgage There are two main types of mortgage interest rates: fixed-rate and adjustable-rate. A fixed-rate mortgage has an interest rate that remains the same throughout the life of the loan.

Debt-to-income ratio

HomeLight

AUGUST 28, 2020

Who sets mortgage interest rates? A mortgage rate is the interest you pay on your home loan. Your mortgage company lends you $250,000. Your mortgage rate is what you’ll pay to borrow that $250,000 over time. Another big way GSEs impact mortgage rates? Your debt-to-income ratio.

Mortgages

Redfin

AUGUST 12, 2024

Higher credit scores typically secure lower interest rates, resulting in lower monthly payments and less paid over the life of the loan. Income stability : Lenders prefer borrowers with a stable income and employment history. Documenting at least two years of consistent income can be crucial.

Loans

Redfin

FEBRUARY 11, 2021

For example, a fixed-rate mortgage carries less risk than an adjustable-rate mortgage and usually has a lower PMI premium. . Some credit unions or lending institutions may not insist on PMI for individual applicants. These borrowers often carry large student debts, which skew their debt-to-income ratio.

Debt-to-income ratio

Realty Biz

SEPTEMBER 30, 2023

In addition to credit scores, lenders also consider factors such as your income, employment history, savings, current debts, and the value of the home you intend to purchase. Demonstrating a stable income, sufficient savings, and a low debt-to-income ratio can strengthen your mortgage application, even with a low credit score.

Finance

Marco Santarelli

MARCH 27, 2025

The Federal Reserve: The Fed's decisions on interest rates trickle down to mortgage rates. A higher score means you're less risky to lend to. Your Debt-to-Income Ratio (DTI): How much of your income goes to debt payments? Your Credit Score: This is a big one!

Debt-to-income ratio

Redfin

JULY 11, 2023

The interest rate and term length determine the amount of your monthly payments. What are the different types of mortgages? When considering mortgage options, it’s important to understand the different types available. To improve your chances of getting approved for a mortgage, there are a few key considerations.

Pre-approval

Marco Santarelli

MAY 16, 2025

This can influence the risk assessment of lenders and, consequently, the rates they offer. State Regulations: Each state has its own set of regulations regarding mortgage lending, which can affect the costs and risks for lenders. Your income: Lenders want to see that you can comfortably afford your mortgage payments.

Mortgages

Real Estate Finance HQ

AUGUST 25, 2017

The FHA doesn’t actually lend any money. Instead, the agency guarantees repayment to lenders if a borrower defaults, so that the lenders know they won’t lose money on the deal, thus allowing them to offer competitive mortgage rates on loans that are easier to qualify for than conventional home loans. Housing Ratio.

FHA loan

Marco Santarelli

JUNE 5, 2025

Homebuyers looking to finance or refinance should pay attention to these market trends as they can affect lending rates. Debt-to-Income Ratio : A lower ratio implies stronger financial health, allowing borrowers to qualify for lower rates.

Mortgages

The Close

DECEMBER 29, 2022

It’s kind of like a fixed-rate mortgage and an adjustable-rate mortgage had a baby. A convertible ARM is a mortgage with a much lower interest rate at the start of the loan, where the interest rate fluctuates during the life of the loan, usually every six months. Debt-to-income ratio (DTI).

Purchase and sale agreement

Marco Santarelli

FEBRUARY 14, 2025

As of February 14, 2025, mortgage rates have slightly increased. The average rate for a 30-year fixed-rate mortgage is now 6.92%, a small uptick of 0.01% from the previous week. This slight increase in rates is just one aspect of a complex and evolving housing market.

Fixed-rate mortgage

Marco Santarelli

APRIL 6, 2025

Adjustable-Rate Mortgages When considering which type of mortgage to choose, understanding the difference between fixed-rate and adjustable-rate mortgages (ARMs) is crucial. Fixed-rate mortgages maintain the same interest rate throughout the loan term, providing predictability in monthly payments.

Debt-to-income ratio

Marco Santarelli

MAY 23, 2025

Current Mortgage Rate Overview: A National Perspective Before we zoom in on specific states, let's take a look at the national average. According to Zillow, as of May 23, 2025 , the average rate for a 30-year fixed-rate mortgage is 7.15%. A higher credit score typically translates to a lower interest rate.

Mortgages