3 Mortgage Rate Myths DebunkedBy BenOni | March 2, 2023
Mortgage rates have been on the rise lately. If you’re in the market for a new home or are considering refinancing your current home, you may be wondering how this will affect your mortgage rate. There are a lot of myths and misconceptions out there about mortgage rates, so we’re here to set the record straight.
Find most popular financial education, credit union, debt guide and many more with C1styourvoiceblog. You will get on with making a better life for yourself.
Mortgage Myth #1: Mortgage rates are determined by the Federal Reserve
The Federal Reserve does not directly set mortgage rates. Mortgage rates are actually determined by the bond market. When the bond market is strong, mortgage rates tend to be low. When the bond market is weak, mortgage rates tend to be high. The Federal Reserve can influence the bond market, but it does not directly set mortgage rates.
Mortgage Myth #2: Mortgage rates are at an all-time low
Mortgage rates are not at an all-time low. In fact, they’re currently at their highest level in four years. That being said, mortgage rates are still relatively low when you compare them to historical averages. So even though rates have been on the rise lately, they’re still relatively affordable.
Mortgage Myth #3: You need perfect credit to get a low mortgage rate
You don’t need perfect credit to get a low mortgage rate. In fact, you can get a low mortgage rate with a credit score as low as 620. However, the lower your credit score, the higher your interest rate will be. So if you have a lower credit score, you may want to work on improving it before you apply for a mortgage.
If you’re in the market for a new home or are considering refinancing your current home, don’t let myths and misconceptions about mortgage rates stop you from getting the best possible rate. US Mortgage Lenders can help you get the best rate possible, no matter what your credit score is. Contact us today to learn more.