Home loan rates rise for the first time in 2015

This week 30-year mortgage rates went higher for the first time this year. The small 0.03 percent increase to 3.66 percent nationwide still makes current mortgage rates lower than the average for the year so far. At this time last year, mortgage rates were 0.75 percent higher according to Freddie Mac.

What this means is greater purchasing power for today’s home buyers and lower monthly payments for those looking to refinance. According to reports from Freddie Mac, refinancing today is saving the average household 30 percent on their mortgage payments each month. With rates so low and no-closing cost mortgages, even recent home buyers can save money by refinancing.

Many homeowners are still not taking advantage of today’s low rates though. With options like HARP, FHA loans and VA loans, there are lots of options for home buyers to purchase or refinance their home at discounted rates with easier approval. It is easy to find out if you can save money by talking to a mortgage expert, such as at loanDepot home loans.

For those who currently have an FHA loan with a high mortgage insurance premium (MIP), refinancing using a conventional loan can also help save some money on your monthly payment. Increasing home values are making this an option for many homeowners, as they now have enough equity to qualify for a conventional refinance.

Low loan rates have increased the purchasing power by over 10 percent since early last year. The average buyer can now afford $10,000 more per $100,000, which helps buyers get the home they want without stretching their budget too much. Now is the time to buy a home or refinance your current mortgage if you have been waiting.