Mortgage Rates Remain Low This Week at 3.77%

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans were quoted at 3.77 percent this week in Zillow Mortgages’ report, unchanged from the same time last week.

The 30-year fixed rate fell early in the week, then rose steadily throughout the week before settling Tuesday.

“Mortgage rates fell last week to their lowest levels since May after China’s yuan devaluation, but strong U.S. data helped rates quickly recover most of the drop,” said Erin Lantz, vice president of mortgages at Zillow. “This week, markets will focus on inflation data and commentary from Fed officials about developments in China.”

Additionally, the 15-year fixed mortgage rate was 2.95 percent. For 5/1 ARMs, the rate was 2.76 percent.

Check Zillow Mortgages for rate trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at current rates.

 

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Mortgage Rates Plunge to 3.75%, Lowest Level Since May

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans fell this week, with the rate borrowers were quoted on Zillow Mortgages at 3.75 percent, down 8 basis points from the same time last week.

The 30-year fixed mortgage rate dropped Friday, then hovered around the current rate for the rest of the week.

“Mortgage rates plummeted last Friday to their lowest level since May after U.S. data showed very weak wage growth in [the second quarter],” said Erin Lantz, vice president of mortgages at Zillow. “Looking ahead, since wage growth will be an important consideration in future interest rate hikes, markets will look to this Friday’s jobs report for hints about wage trends.”

Additionally, the 15-year fixed mortgage rate was 2.92 percent. For 5/1 ARMs, the rate was 2.72 percent.

Check Zillow Mortgages for rate trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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Mortgage Rates Fall to Lowest Level Since Early June

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.83 percent, down 8 basis points from the same time last week.

The 30-year fixed mortgage rate moved lower throughout the week before settling at that rate Tuesday.

“Mortgage rates fell last week to their lowest level since early June,” said Erin Lantz, vice president of mortgages at Zillow. “There is potential for increased rate volatility this week as markets look to Wednesday’s Federal Open Market Committee statement and Thursday’s GDP report. Rates could move back up if the data are stronger than expected.”

Additionally, the 15-year fixed mortgage rate was 2.97 percent. For 5/1 ARMs, the rate was 2.84 percent.

Check Zillow Mortgages for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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Mortgage Rates Rise But Remain Under 4% Again

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed home loans rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.95 percent, up 7 basis points from the same time last week.

The 30-year fixed mortgage rate rose late in the week, then hovered around 3.98 percent before dipping to the current rate.

“Mortgage rates increased late last week as fears of a Greek euro exit and a Chinese stock market collapse eased,” said Erin Lantz, vice president of mortgages at Zillow. “We expect less volatility this week with markets focusing more on domestic news, especially Fed Chair Janet Yellen’s Congressional testimony.”

Additionally, the 15-year fixed mortgage rate was 3.04 percent. For 5/1 ARMs, the rate was 2.91 percent.

Check Zillow Mortgages for trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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Mortgage Rates Dip to 3.88%, Fluctuating With Greek Crisis

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.88 percent, down 5 basis points from the same time last week.

The 30-year fixed mortgage rate rose to 3.97 percent on Wednesday and hovered there throughout the holiday weekend, then fell to the current rate early this week.

“Mortgage rates jumped last Wednesday after Greece defaulted on its international debts, then fell early this week due to continued Greek instability, turmoil in Chinese stock markets, and unexpectedly strong global oil supplies,” said Erin Lantz, vice president of mortgages at Zillow. “Uncertainty over Greece’s future will continue to dominate headlines this week, but economic news elsewhere suggests interest rates will remain lower for longer.”

Additionally, the 15-year fixed mortgage rate was 3.00 percent. For 5/1 ARMs, the rate was 2.88 percent.

Check Zillow Mortgages for trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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Mortgage Rates Break 4% Again Before Falling Back to 3.93%

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans fell this week, with the rate borrowers were quoted on Zillow Mortgages at 3.93 percent Tuesday, down 2 basis points from the same time last week.

The 30-year fixed mortgage rate rose to 4.03 percent Friday and remained there through the weekend, then dropped to 3.88 percent Monday before returning to the current rate.

“After moving higher on Friday, rates fell as markets absorbed the shock of Greece’s decision to close its banks leading up to a referendum on its debt negotiations,” said Erin Lantz, vice president of mortgages at Zillow. “Greece will likely dominate financial headlines again this week, but Thursday’s early jobs report could move markets if lenders don’t clock out early for the Fourth of July holiday.”

Additionally, the 15-year fixed mortgage rate was 3.04 percent. For 5/1 ARMs, the rate was 2.88 percent.

Check Zillow Mortgages for trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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This Couple Paid Off a 30-Year Mortgage in Just 7 Years

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Courtesy of Andrea Stewart via Credit.comJerimiah Honer and Andrea Stewart paid off their 30-year mortgage on a $300,000 California home in just seven years.

By Christine DiGangi

The idea behind paying off a loan faster than scheduled is pretty simple: It saves you money. That’s a huge part of the reason California couple Andrea Stewart and Jerimiah Honer decided to repay their 30-year mortgage in just seven years — by doing so, they saved more than $130,000 in interest. Now the couple has an opportunity to achieve other goals, like invest beyond their property and existing retirement funds, travel and maybe do a little shopping. The frugal pair hasn’t done a lot of that in the last several years.

Stewart, 32, and Honer, 36, worked hard to save money as they tried to accelerate their loan repayment, but they acknowledge they also had a lot of luck. Paying off debt is a different journey for everyone, but here’s how they quickly achieved their dream of owning their own home.

The Details

Stewart and Honer bought their house on a 0.10-acre lot in Sacramento for nearly $300,000 in 2008. Their combined annual income from their full-time jobs amounts to roughly $150,000, but they received supplemental income from a variety of sources along the way to repaying the mortgage. They made a 10% down payment and received a 30-year mortgage with a 6.75 percent interest rate, but they refinanced twice, to 5.25 percent and then to 3.875 percent. Honer calculated their estimated savings of $130,000 using the lowest rate. The couple had some student loan debt when they took out the mortgage, but by paying an additional $200 a month toward their education debt, those loans were paid off by the end of their first year in the house.

That’s when they switched their attention to the mortgage.

How They Paid Off a 30-Year Mortgage in 7 Years

The property itself had a huge impact on the couple’s ability to put a lot of money toward their home loan. The house is close to downtown Sacramento, allowing them to easily commute by bicycle and sell their second car. Honer and Stewart also grow most of their own food.

“It’s actually easier to go into your backyard and pick things than go to the grocery store,” Honer said. “We like the organic element as well as it’s a huge bill cut.”

Not only did they save a lot on gas, vehicle expenses and grocery bills, they also budgeted as if they made less money in the first place. Honer crunched the numbers, and even though both he and Stewart have full-time jobs, they figured out they could manage under one income. The second income went toward the mortgage, and Honer made his own amortization schedule to determine how much they could afford to pay (and eventually save).

Much of their success stems from their mindset toward money.

“I think we were always frugal to begin with — we’re both savers,” Stewart said. “One of the things we asked ourselves when we made a purchase was, ‘Is this really going to make us happy?’ … We try to have experiences like traveling and things like that, yeah, but I don’t think [we like] a lot of stuff.”

Or, as Honer puts it: “We don’t know how to spend money anymore. We kind of forgot.” He also said that they’re not “big credit people,” and even though a mortgage is a helpful credit instrument, it was important to them to be out of debt as soon as possible. (You can see how your debts and your payment history are affecting your credit by getting your free credit report summary on Credit.com.)

Tips for Paying Off Debt Fast

For anyone interested in trying to replicate the couple’s success, there are a few things to know. First, they paid off their other debt obligations (student loans). In addition to cutting out expenses and keeping to a strict budget, Honer and Stewart received some money besides their regular income, which they put toward the loan. The two are aspiring writers and made some money from side gigs, but they also received personal-injury settlements from two separate times a car hit one of them while riding a bicycle. Getting hit by a car isn’t exactly good fortune, but the settlements amounted to $37,000, which helped cut down the debt. Inspired by a friend’s successful pregnancy through egg donation, Stewart twice donated eggs and received about $6,000 each time.

Their story is a combination of hard work, a solid financial situation and luck, but a lot of their success comes down to decision-making: They could have done a lot with their regular income and the additional money they came into, but they chose to put it toward a specific goal. That means their home cost them thousands of dollars less than it could have if they paid for it on schedule.

There’s not much they would have done differently, though they admit they could have saved more, rather than just pay off the home loan and contribute to their retirement accounts. Honer and Stewart don’t see themselves changing their spending habits now that this huge loan is behind them, and they plan to stay in the home for a long time. Now they’re interested in exploring other investments and maybe even retiring early some day.

“I hope it helps some people,” Stewart said of her decision to share their story. She posted about it on Reddit, where it generated a lot of conversation. Her advice? “I would say just think about what makes you happy.” That’s what drove their decisions, and it kept them on track for years.

 

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Mortgage Rates Fluctuate But Remain Under 4%

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.95 percent, up 2 basis points from the same time last week.

The 30-year fixed mortgage rate fell to 3.82 percent on Friday, then hovered around 3.86 percent before rising to the current rate on Tuesday.

“Rates fell last week due to continued uncertainty about Greece’s fiscal situation and the Fed signaling it might wait longer than expected to raise interest rates, but recovered as negotiations with Greece continue,” said Erin Lantz, vice president of mortgages at Zillow. “Rates will likely be volatile until a deal between Greece and its creditors is finalized.”

Additionally, the 15-year fixed mortgage rate was 3.04 percent, and for 5/1 ARMs, the rate was 2.82 percent.

Check Zillow Mortgages for rate trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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Rates Fall to 3.93% After Briefly Breaking 4% Barrier

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans fell this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.93 percent, down 3 basis points from the same time last week.

The 30-year fixed mortgage rate rose to 4.01 percent last week before falling and then hovering around the current rate for the rest of the week.

“Rates retreated from their nine-month highs late last week as a new round of concerns emerged about Greece exiting the eurozone,” said Erin Lantz, vice president of mortgages at Zillow. “This week there is the potential for a big rate move as markets focus on Wednesday’s Federal Open Market Committee meeting and a resolution of Greek debt negotiation, two forces that could push rates in opposite directions.”

Additionally, the 15-year fixed rate was 3.05 percent. For 5/1 ARMs, the rate was 2.93 percent.

Check Zillow Mortgages for trends and up-to-the-minute rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

 

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Mortgage Rates Jump Higher, Approaching 4%

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ZillowThe weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals.

By Lauren Braun

Mortgage rates for 30-year fixed loans rose this week, with the current rate borrowers were quoted on Zillow Mortgages at 3.96 percent, up 18 basis points from the same time last week.

The 30-year fixed mortgage rate rose to 3.98 percent Friday, then hovered there before settling at the current rate on Tuesday.

“Rates jumped sharply last week — first on the heels of news that the European Central Bank’s bond buying program may end sooner than expected, then an exceptionally strong U.S. jobs report,” said Erin Lantz, vice president of mortgages at Zillow. “We expect less volatility in this data-light week.”

Additionally, the 15-year fixed mortgage rate was 3.09 percent. For 5/1 ARMs, the rate was 3.01 percent.

Check Zillow Mortgages for mortgage rate trends and up-to-the-minute rates for your state, or use the mortgage calculator to figure monthly payments at the current rates.

 

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