Rates as of 12/3/2024 offered through Fidelity Home Mortgage, subject to change and market conditions, your specific scenario needs to be quoted individually.
Purchase (Conventional Loan) |
Rate/Term Refinance (no cash out) (Conventional Loan) |
|
30 Year Fixed Rate 6.5% / APR 6.655%
20 Year Fixed Rate 6.25% / APR 6.46% 15 Year Fixed Rate 5.875% / APR 6.114% FHA/Purchase/Refinance/Cash Out30 Year Fixed Rate 5.75% / APR 6.559%
20 Year Fixed Rate 5.625% / APR 6.613% 15 Year Fixed Rate 5.375% / APR 6.038% |
30 Year Fixed Rate 6.625% / APR 6.753%
20 Year Fixed Rate 6.375% / APR 6.544% 15 Year Fixed Rate 5.75% / APR 5.99% Cash Out Refinance (Conventional Loan)30 Year Fixed Rate 6.875% / APR 7.049%
20 Year Fixed Rate 6.5% / APR 6.748% 15 Year Fixed Rate 6.5% / APR 6.675% |
VA/Purchase/Refinance/Cash Out30 Year Fixed Rate 5.75% / APR 5.985%
20 Year Fixed Rate 5.625% / APR 5.987% 15 Year Fixed Rate 4.99% / APR 5.468% |
All the quoted rates and terms displayed on this page are based on the following loan scenario:
Standard Single Family Home/Detached Loan amount $350,000 Home value or purchase price $550,000 Credit score 720 |
Obtain your customized quote from a Loan Officer now by selecting from options below.
Schedule a Phone Call or Virtual Meeting a Loan Officer
Next Federal Reserve Meetings / Rate Adjustment Review Dates
November 6-7 2024
December 17-18 2024
January 28-29 2025
March 18-19 2025
December 17-18 2024
January 28-29 2025
March 18-19 2025
Outlook for next three months considering election, market conditions, Fed Policy:
Our outlook for November-January as pertains to mortgage rates are as follows:
1) Federal Reserve Fed Funds Rate Policy
11/7/2024 Fed Funds rate was lowered 0.25% 09/2024 Fed Funds Rate was lowered by 0.5%. We are in a Federal Reserve rate cutting policy period, we will continue to see Fed Funds Rates be lowered between now and January regardless of election out come. This is one of the biggest positive impacts on mortgage rates we want to have in place.
2) USA Presidential Election Outcome
Donald Trump 2025 Presidency-Because Trump intends to make many big changes, it is not known how bond markets or economic markets will react because it is uncertain when, how much of the changes he is proposing will take place. If you want to move on a mortgage loan transaction with a fair level of certainty it might be best to do so by evaluating your options between now and end of 2024 and avoid the unknown that will come in the following months once the changes start going into place once he taxes office in 2025.
3) Bond Market
Take the time to read the information at the bottom of this page to learn how the bond market impacts mortgage rates. In September 2024 the Federal Reserve Cut the Fed Funds Rate by 0.5%, however between that date and October 20th 2024 the Bond Market went up basically cancelling the rate cut benefit and taking mortgage rates back up. November 2024 Fed Funds rate was lowered by 0.25% following the election. The top 5 factors that are currently impacting the 10 year bond price are: Inflation Expectations, Federal Reserve Monetary Policy, Economic Growth Expectations, Global Economic, Political Tensions, War Conditions & Bond Supply and Demand Dynamics
4) USA Monetary Policies & Risks as it Pertains to $35.78 Trillion Debt / $1.83 Trillion Annual Budget Deficit
&
USD Currency Loosing its Status as the Base Currency Used Internationally
In 2024, price of Gold has risen by 40% this happens when financial markets fear a fall out from poor monetary policy/default and uncertain market conditions. Gold is an established holder of value based on past history. The USA current annual budget deficit and national debt is putting the USA currency and financial markets in dangerous place, it is unknown when, how the markets will fully react, however the movement in gold prices this year suggest the move is already starting.
There are currently 32 countries setting up a new International Currency/Payment System to rival the USD Dollar as base currency, this organization is called BRICS to name just a few, Russia, United Arab Emirates, Saudi Arabia, Egypt, Brazil, India, China, South Africa. In previous years the amount of global trade taking place in USD was around 88%, that number today down to between 50-60%. Countries rightfully so are not happy with USA irresponsible lending/borrowing policies and as a result are moving away from it, this impacts the USD financial markets and BOND prices which impacts mortgage rates. There is significant movement in 2024 and planned for 2025 for this to continue. Unfortunately there are no politicians or people in power in the USA indicating they have plans to make a big change in these policies. So it is likely that the "de-dollarization" of the USD currency will continue. We recommend you don't wait on your mortgage needs as it pertains to this matter.
1) Federal Reserve Fed Funds Rate Policy
11/7/2024 Fed Funds rate was lowered 0.25% 09/2024 Fed Funds Rate was lowered by 0.5%. We are in a Federal Reserve rate cutting policy period, we will continue to see Fed Funds Rates be lowered between now and January regardless of election out come. This is one of the biggest positive impacts on mortgage rates we want to have in place.
2) USA Presidential Election Outcome
Donald Trump 2025 Presidency-Because Trump intends to make many big changes, it is not known how bond markets or economic markets will react because it is uncertain when, how much of the changes he is proposing will take place. If you want to move on a mortgage loan transaction with a fair level of certainty it might be best to do so by evaluating your options between now and end of 2024 and avoid the unknown that will come in the following months once the changes start going into place once he taxes office in 2025.
3) Bond Market
Take the time to read the information at the bottom of this page to learn how the bond market impacts mortgage rates. In September 2024 the Federal Reserve Cut the Fed Funds Rate by 0.5%, however between that date and October 20th 2024 the Bond Market went up basically cancelling the rate cut benefit and taking mortgage rates back up. November 2024 Fed Funds rate was lowered by 0.25% following the election. The top 5 factors that are currently impacting the 10 year bond price are: Inflation Expectations, Federal Reserve Monetary Policy, Economic Growth Expectations, Global Economic, Political Tensions, War Conditions & Bond Supply and Demand Dynamics
4) USA Monetary Policies & Risks as it Pertains to $35.78 Trillion Debt / $1.83 Trillion Annual Budget Deficit
&
USD Currency Loosing its Status as the Base Currency Used Internationally
In 2024, price of Gold has risen by 40% this happens when financial markets fear a fall out from poor monetary policy/default and uncertain market conditions. Gold is an established holder of value based on past history. The USA current annual budget deficit and national debt is putting the USA currency and financial markets in dangerous place, it is unknown when, how the markets will fully react, however the movement in gold prices this year suggest the move is already starting.
There are currently 32 countries setting up a new International Currency/Payment System to rival the USD Dollar as base currency, this organization is called BRICS to name just a few, Russia, United Arab Emirates, Saudi Arabia, Egypt, Brazil, India, China, South Africa. In previous years the amount of global trade taking place in USD was around 88%, that number today down to between 50-60%. Countries rightfully so are not happy with USA irresponsible lending/borrowing policies and as a result are moving away from it, this impacts the USD financial markets and BOND prices which impacts mortgage rates. There is significant movement in 2024 and planned for 2025 for this to continue. Unfortunately there are no politicians or people in power in the USA indicating they have plans to make a big change in these policies. So it is likely that the "de-dollarization" of the USD currency will continue. We recommend you don't wait on your mortgage needs as it pertains to this matter.
What market conditions really affect mortgage interest rates to make them go up or down vs when the Federal Reserve lowers the Fed Funds rate?
How the Fed’s rate cuts (sort of) impact mortgage rates
After much anticipation, the Fed finally cut interest rates by half a basis point 09/2024 – its first cut since March 2020. While this move made headlines, the relationship between Fed rate cuts and mortgage rates is more nuanced than many realize. In fact, mortgage rates are actually influenced more by the 10-year Treasury yield than by the Federal Reserve's interest rate.
Here’s how it works: Treasury yields and mortgage rates tend to move together because they compete for the same low-risk investors. During the COVID-19 pandemic, when the Fed lowered the federal funds rate to virtually zero, yields on the 10-year Treasury plummeted to a historic low of 0.52%. As a result, mortgage rates also reached unprecedented lows. However, by 2022, as the Fed hiked rates to combat inflation, 10-year Treasury yields rose to nearly 3.5%, pushing mortgage rates over 5%.
After much anticipation, the Fed finally cut interest rates by half a basis point 09/2024 – its first cut since March 2020. While this move made headlines, the relationship between Fed rate cuts and mortgage rates is more nuanced than many realize. In fact, mortgage rates are actually influenced more by the 10-year Treasury yield than by the Federal Reserve's interest rate.
Here’s how it works: Treasury yields and mortgage rates tend to move together because they compete for the same low-risk investors. During the COVID-19 pandemic, when the Fed lowered the federal funds rate to virtually zero, yields on the 10-year Treasury plummeted to a historic low of 0.52%. As a result, mortgage rates also reached unprecedented lows. However, by 2022, as the Fed hiked rates to combat inflation, 10-year Treasury yields rose to nearly 3.5%, pushing mortgage rates over 5%.
Why is this relationship so important? Treasury securities, particularly the 10-year note, are seen as safe investments backed by the U.S. government. When investors seek security, they buy these notes, driving prices up and yields down. This impacts the rates for 15- and 30-year fixed-rate mortgages because these home loans compete with Treasury bonds for the same investors. If Treasury yields rise, so do mortgage rates, as investors demand higher returns for taking on the additional risk associated with mortgage-backed securities.
With expectations that the Fed will continue cutting rates through the end of the year, the bond market has likely already priced in the possibility of additional cuts. This means we may not see significant mortgage rate drops in response to further Fed rate cuts. As is often the case, mortgage rates moved in anticipation of the Fed’s decision in September, reflecting market rumors and expectations, rather than the actual rate change itself.
For those in the market for a mortgage, it’s helpful to understand how these dynamics play out. Fixed-rate mortgages tend to mirror the movements of Treasury yields, while adjustable-rate mortgages (ARMs) are more closely tied to the Fed funds rate. As such, while recent Fed cuts may signal relief for ARMs, fixed mortgage rates have already responded to broader market movements. As always, it’s the expectation of future Fed actions – rather than the actions themselves – that drive the biggest shifts.
With expectations that the Fed will continue cutting rates through the end of the year, the bond market has likely already priced in the possibility of additional cuts. This means we may not see significant mortgage rate drops in response to further Fed rate cuts. As is often the case, mortgage rates moved in anticipation of the Fed’s decision in September, reflecting market rumors and expectations, rather than the actual rate change itself.
For those in the market for a mortgage, it’s helpful to understand how these dynamics play out. Fixed-rate mortgages tend to mirror the movements of Treasury yields, while adjustable-rate mortgages (ARMs) are more closely tied to the Fed funds rate. As such, while recent Fed cuts may signal relief for ARMs, fixed mortgage rates have already responded to broader market movements. As always, it’s the expectation of future Fed actions – rather than the actions themselves – that drive the biggest shifts.
Home equity loans vs. HELOCs: Which is better?
Don't want to touch that low rate on your 1st mortgage, this might be a good option!
Both let you tap your home’s value to access cash. But there are significant differences
Contact us for current rates/options, our minimum loan amount is $100,000
Contact us for current rates/options, our minimum loan amount is $100,000
Home equity lines of credit (HELOC's) and home equity loans both let homeowners tap into the value of their home to access cash that can be used to fund home improvements, pay for college, consolidate high-interest debts or for any other expense.
There are significant differences between these two financing options, though, including how you pay back your lender.
Home equity is the percentage of your home you own outright, versus the amount you still owe on a mortgage. If you made a 20% down payment, you’d start out with 20% equity.
As you make monthly payments and the value of your home increases, the equity in your home will go up, as well. So, if your home was appraised at $500,000 and your mortgage balance is $300,000, you have 40% home equity.
The relationship between the equity in your home and its value is your loan-to-value (LTV) ratio.
Home equity is a significant part of your net worth and can be used to access cash through HELOCs, home equity loans, and other financing tools.
What is a home equity loan?
In a sense, a home equity loan is a second mortgage. Instead of paying for your house, though, it’s providing you with a lump sum of cash.
Most lenders approve home equity loans for 80% of the house’s value, but some go as high as 85% or even 90%. And while you typically need 20% equity for approval, some lenders accept 15%.
The interest rate on a home equity loan is typically fixed, though some lenders will offer an adjustable rate. You repay the loan in monthly installments for anywhere from 5 to 30 years.
Home equity loans are an attractive alternative to personal loans and other financing because of their lower rates and longer repayment terms.
There’s no limit on what you can use a home equity loan for, but the interest is only tax-deductible if it’s spent on building, repairing or renovating your property.
And because you’re using your house as collateral, your lender can force you into foreclosure if you fail to make payments.
Home equity loan: Pros and cons
Pros
What is a HELOC?
While a home equity loan is a lump-sum cash payment, a home equity line of credit (or HELOC) is a line of revolving credit. Like a credit card, a HELOC comes with a credit limit you can borrow up to.
Borrowers have a draw period, usually 10 to 15 years, in which they can tap their line of credit. During this period, you’re only required to make interest payments. (If you make payments on the principal, your available credit goes back up.)
After the draw period ends, you begin the repayment period and can no longer use your line of credit. You’ll have a set time frame (most often 20 years) to repay any remaining principal, plus interest.
The requirements for a HELOC are similar to those for a home equity loan. And, like a home equity loan, your lender can force you into foreclosure for lack of payment.
One notable difference is that home equity loans usually have fixed interest rates and HELOCs are typically adjustable. That’s a plus when interest rates are declining, but it can be a drawback if they start to climb. It also means your monthly payments are less predictable.
Another difference is that you can access HELOC funds in as little as a few days while closing on a home equity loan can take as long as two months
Home equity line of credit: Pros and cons
Pros
Requirements for HELOCs and home equity loans
To get approved for either a HELOC or a home equity loan, you typically need:
Home equity loan vs. HELOC: Which is better?
Which loan type is better for you depends on several factors, including your risk tolerance, what you want to use the money for and how much you have on hand to put toward repayment.
A home equity loan could make more sense if you need a one-time cash infusion to pay for repairs or buy a car. But a HELOC could be the better option if you have recurring costs, like ongoing home renovations or college tuition.
With a HELOC, you only pay interest on the portion of the line of credit you use. If you tap too much of your line of credit at once, however, your credit score will take a real hit. (Some experts suggest keeping your credit utilization rate below 30%, while others say below 10% is best.)
There are significant differences between these two financing options, though, including how you pay back your lender.
Home equity is the percentage of your home you own outright, versus the amount you still owe on a mortgage. If you made a 20% down payment, you’d start out with 20% equity.
As you make monthly payments and the value of your home increases, the equity in your home will go up, as well. So, if your home was appraised at $500,000 and your mortgage balance is $300,000, you have 40% home equity.
The relationship between the equity in your home and its value is your loan-to-value (LTV) ratio.
Home equity is a significant part of your net worth and can be used to access cash through HELOCs, home equity loans, and other financing tools.
What is a home equity loan?
In a sense, a home equity loan is a second mortgage. Instead of paying for your house, though, it’s providing you with a lump sum of cash.
Most lenders approve home equity loans for 80% of the house’s value, but some go as high as 85% or even 90%. And while you typically need 20% equity for approval, some lenders accept 15%.
The interest rate on a home equity loan is typically fixed, though some lenders will offer an adjustable rate. You repay the loan in monthly installments for anywhere from 5 to 30 years.
Home equity loans are an attractive alternative to personal loans and other financing because of their lower rates and longer repayment terms.
There’s no limit on what you can use a home equity loan for, but the interest is only tax-deductible if it’s spent on building, repairing or renovating your property.
And because you’re using your house as collateral, your lender can force you into foreclosure if you fail to make payments.
Home equity loan: Pros and cons
Pros
- Larger sum available than a personal loan or credit card
- Relatively lower interest rate
- Longer repayment period
- Fixed interest rate makes payments easier to predict
- No limit on what funds can be used for
- Interest is tax-deductible if used for home repairs or renovations
- Typically need at least 15%-20% home equity
- Approval time is considerably longer than HELOC or personal loan
- Application fees, closing costs and other upfront charges
- Can lead to negative equity if loan balance exceeds home’s value
- Lender can foreclosure if you fail to make payments or default
What is a HELOC?
While a home equity loan is a lump-sum cash payment, a home equity line of credit (or HELOC) is a line of revolving credit. Like a credit card, a HELOC comes with a credit limit you can borrow up to.
Borrowers have a draw period, usually 10 to 15 years, in which they can tap their line of credit. During this period, you’re only required to make interest payments. (If you make payments on the principal, your available credit goes back up.)
After the draw period ends, you begin the repayment period and can no longer use your line of credit. You’ll have a set time frame (most often 20 years) to repay any remaining principal, plus interest.
The requirements for a HELOC are similar to those for a home equity loan. And, like a home equity loan, your lender can force you into foreclosure for lack of payment.
One notable difference is that home equity loans usually have fixed interest rates and HELOCs are typically adjustable. That’s a plus when interest rates are declining, but it can be a drawback if they start to climb. It also means your monthly payments are less predictable.
Another difference is that you can access HELOC funds in as little as a few days while closing on a home equity loan can take as long as two months
Home equity line of credit: Pros and cons
Pros
- Lower rates and longer terms than personal loans, cards and even home equity loans
- No limit on what money can be used for
- Only charged interest on what you’ve spent
- If used for home improvements, the interest is tax-deductible
- Funded faster than a home equity loan
- Eats up your available equity
- Variable rates mean the cost of borrowing can increase
- Monthly payments are less predictable
- Risk of upside-down mortgage and foreclosure
Requirements for HELOCs and home equity loans
To get approved for either a HELOC or a home equity loan, you typically need:
- At least 15% to 20% home equity
- A credit score of between 620 and 680
- A maximum debt-to-income ratio of 43%
- Stable, verifiable income
Home equity loan vs. HELOC: Which is better?
Which loan type is better for you depends on several factors, including your risk tolerance, what you want to use the money for and how much you have on hand to put toward repayment.
A home equity loan could make more sense if you need a one-time cash infusion to pay for repairs or buy a car. But a HELOC could be the better option if you have recurring costs, like ongoing home renovations or college tuition.
With a HELOC, you only pay interest on the portion of the line of credit you use. If you tap too much of your line of credit at once, however, your credit score will take a real hit. (Some experts suggest keeping your credit utilization rate below 30%, while others say below 10% is best.)
Home equity and HELOC alternatives
There are other ways to access cash, including some that don’t leverage your home’s value.
Cash-out refinancing (see our rate options at the bottom of this email)
Cash-out refinance is a type of mortgage refinancing that lets borrowers get more than their existing home loan balance and receive the remaining funds as cash.
Refinancing your mortgage will probably take longer than a home equity loan or HELOC, but the credit requirements are more flexible and you’ll likely get a lower interest rate.
Personal loan
If you don’t want to use your house as collateral, you can always apply for a personal loan. It’s a better option if you need less, since lenders usually cap personal loans at $50,000-$100,000.
Your interest rate will likely be higher than with a home equity loan or HELOC and the repayment term shorter. In addition, you won’t be able to write off the interest — even if you use it for home renovations.
The chief benefits of a personal loan are the lower credit score threshold and there’s no risk of foreclosure.
There are other ways to access cash, including some that don’t leverage your home’s value.
Cash-out refinancing (see our rate options at the bottom of this email)
Cash-out refinance is a type of mortgage refinancing that lets borrowers get more than their existing home loan balance and receive the remaining funds as cash.
Refinancing your mortgage will probably take longer than a home equity loan or HELOC, but the credit requirements are more flexible and you’ll likely get a lower interest rate.
Personal loan
If you don’t want to use your house as collateral, you can always apply for a personal loan. It’s a better option if you need less, since lenders usually cap personal loans at $50,000-$100,000.
Your interest rate will likely be higher than with a home equity loan or HELOC and the repayment term shorter. In addition, you won’t be able to write off the interest — even if you use it for home renovations.
The chief benefits of a personal loan are the lower credit score threshold and there’s no risk of foreclosure.