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Forbes
a day ago
- Business
- Forbes
Today's Mortgage Refinance Rates: June 27, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The rate on a 30-year fixed refinance dropped to 6.68% today, according to the Mortgage Research Center. Rates averaged 5.6% for a 15-year financed mortgage and 6.46% for a 20-year financed mortgage. Related: Compare Current Refinance Rates At 6.68%, the average rate on a 30-year fixed-rate mortgage refinance is down 2.51% from this time last week. The 30-year fixed mortgage refi APR (annual percentage rate) is 6.71%. At this time last week, it was 6.88%. The APR represents the all-in cost of your loan. At the current interest rate of 6.68%, borrowers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $644 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan would be approximately $132,443. The 20-year fixed mortgage refinance average rate stands at 6.46%, versus 6.66% last week. The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.5%. It was 6.69% last week. At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $743 per month in principal and interest. That doesn't include taxes and fees. That borrower would pay roughly $78,895 in total interest over the life of the loan. For a 15-year fixed refinance mortgage, the average interest rate is currently 5.6%. Last week, the 15-year fixed-rate mortgage stood at 5.76%. The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.64%. Last week, it was 5.8%. Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $822 per month in principal and interest—not including taxes and fees. That would equal about $48,435 in total interest over the life of the loan. The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) declined week-over-week to 7%, versus 7.11% last week. At today's interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $666 per month in principal and interest on a $100,000 loan. A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 6.3%, down 2.45% from last week. At today's rate, a borrower would pay $860 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $55,073 in total interest. No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity. The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense. When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms. When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice. There are lots of good reasons to refinance your mortgage , but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home's equity or eliminate private mortgage insurance (PMI). It's important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the 'break-even point' for a potential refinance – to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage. Check out our mortgage refinance calculator to help you decide if this is a good time to refinance. Refinancing a mortgage isn't that different than taking out a mortgage in the first place, and it's always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate: Polish up your credit score Lower your debt-to-income ratio Keep an eye on mortgage rates Consider a shorter loan Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You're also likely to look better to mortgage refinance lenders if you don't have too much debt relative to your income. You should keep a regular watch on mortgage rates , which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates. Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025. If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable. Since mortgage rates are expected to change little in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the year. In the meantime, improving your credit score and paying down your loan balance will help you secure the lowest possible rate when you're ready to explore refinancing options. Frequently Asked Questions (FAQs) Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It's always a good idea to ask the lender what kind of closing costs they'll charge before you decide to borrow from them. Most lenders allow you to refinance a mortgage six months after you start paying it off, although some require that you wait 12 months. Contact your lender to be sure. Many lenders refinance your mortgage in about 45 to 60 days, but it depends on the type of mortgage you choose and other factors. Ask your lender what their time frame is before you borrow to make sure it's right for you.
Yahoo
a day ago
- Automotive
- Yahoo
Second-chance car loans: What they are and how to get one
A second-chance auto loan is an auto loan that caters to borrowers with subprime or deep subprime credit. Second-chance car loans come with higher interest rates that can inflate the price of a car loan by hundreds of dollars. There are more affordable alternatives to second-chance auto loans, but these loans can put you in a car more quickly if it's essential for you to have a vehicle. A lower credit score can make getting approved for competitive auto loan rates challenging, but you may still be eligible for financing through a second-chance auto loan. Also referred to as subprime auto loans, these cater to borrowers in the subprime and deep subprime categories. The trade-off is higher borrowing costs, which results in a higher monthly payment. If you've exhausted other options, a second-chance auto loan could help you finance a vehicle. Still, it's worth considering the benefits and drawbacks of these loans before you apply to know what you should expect. A second-chance auto loan, or subprime car loan, is a type of bad credit auto loan offered to drivers who may be denied financing for traditional auto loans. In general, FICO scores between 501 and 600 are considered subprime. Anything lower is considered deep subprime. The eligibility guidelines for second-chance auto loans vary greatly among lenders. Most will require a minimum credit score and minimum income. Those without strict requirements will likely still consider your credit score and income, but these lenders may also consider other factors, although with any option, you can expect higher interest rates and less favorable loan terms. You will almost certainly have to pay a higher interest rate on a second-chance auto loan. An excellent credit score nets an average interest rate of 5.18 percent on a new car loan, whereas subprime borrowers face a much higher average interest rate of 13.22 percent, based on data from Experian. This is because lenders consider you a higher risk of default. While not all lenders offer these types of loans, there are a few places where you can find one. Some dealership financing may include a second-chance loan. In general, buy here, pay here (BHPH) lots cater to customers with no credit or low credit scores. Because of potentially high interest rates, they should only be used as a last resort. In addition, some dealerships will place tracking devices or starter interrupters on vehicles to make repossession easier, which can be an invasive drawback for some drivers. It's also worth exploring no-haggle online car dealerships like Carmax and Carvana if you need a second-chance car loan. Good credit isn't required for financing, and these options allow you to shop and finance used cars in one place, which makes them a convenient option if you have limited or no credit history. There are multiple lenders that operate either fully or partially online, like LightStream, which offers unsecured auto loans. You may also want to consider using an online lending marketplace to make finding and comparing these lenders easier. Before filling out a marketplace's form, check if there is a service fee to match you with lenders. If there isn't, you may be able to quickly compare options that fit your credit score and budget. You can also view loan offers that include monthly payments and interest rates without impacting your credit score. While major banks often cater to borrowers with good to excellent credit, there are some local banks and credit unions that are willing to work with borrowers who have poor credit. These can be worth exploring if you already have an account or are willing to open one. In particular, you may be able to get an auto loan with a credit union since these typically have lower rates and may consider your broader financial picture. If you're already a credit union member, make an appointment to speak with a loan officer. You may be eligible for financing based on your existing relationship. Although they are accessible, second-chance car loans are not without flaws. Keep these factors in mind before applying to make an informed decision. Second-chance car loans are riskier for lenders. Consequently, they charge steep interest rates that could make your payments more costly. The average monthly payment for subprime new auto loans is $762, but borrowers with excellent credit scores pay just $727, according to Experian. The steeper monthly payment is likely tied to the higher car loan interest rate that subprime borrowers are offered. The average interest rates for applicants with subprime or deep subprime credit range from 13.22 percent for new vehicles up to 21.58 percent for used vehicles. You should also be on the lookout for fees — like application, origination, prepayment and any monthly account fees — to get an idea of what additional costs you may have to work into your budget. Hold off on signing any paperwork until you read the loan contract and understand all the costs involved. You may also want to use an auto loan calculator to determine exactly how much a loan could cost each month. If you plan to buy a car as a first step to improving your credit, a second-chance auto loan may not be the way to go. Some lenders choose not to report loan activity to the credit bureaus, which means you lose the opportunity to build your credit through on-time payments. Ask the lender if it reports to the credit bureaus. There are many that do, and a positive payment history is critical if you want to get better terms or refinance your auto loan in the future. It's also worth reading the fine print to confirm the exact credit reporting a lender does when you are paying back your loan. Because subprime borrowers have high average interest rates, it is one of the most crucial aspects to consider when comparing second-chance auto loans. Shopping around with multiple lenders and applying for preapproval is essential to finding the best deal. If you can find a rate even a single percentage point lower, you can get a more affordable monthly payment and save on interest. For example, your monthly payment on a $26,000 auto loan with a 60-month term will be drastically different depending on your interest rate. The total amount you pay in interest will also be affected, leading you to spend hundreds — if not thousands — of dollars more over the life of your loan. APR Monthly payment Total interest paid 9% $540 $6,383 14% $605 $10,298 19% $674 $14,467 22% $718 $17,086 Avoid buy-here, pay-here lots that require a starter interrupter or a GPS tracker in order to approve you for financing. These types of devices make it easier for vehicles to be repossessed for non-payment, and they can leave you with little or no time to bring the loan current or work with your lender to make payment arrangements. Be wary of any deals that seem too good to be true when researching subprime lenders. Check customer reviews and thoroughly vet any potential lenders before you apply. Otherwise, you could fall victim to a yo-yo scam or other car-buying scam and lose money, time and the car you're trying to buy. If you've been turned down for a second-chance car loan or can't qualify for a decent rate, consider other options. It may mean waiting a few months — but a good deal is worth the patience. Add a cosigner. The lender may approve your application if you have a cosigner with excellent credit and a stable income — but keep in mind, many lenders only accept joint applications, not cosigners. Improve your credit. If you have time to wait, improving your credit may help you qualify for a loan with more favorable terms. On average, borrowers with near prime credit — FICO scores between 601 and 660 — have interest rates three to five percent lower than those with subprime credit. Buy with cash. It takes time to save enough money to cover the purchase price, vehicle registration and other related costs. Still, you can steer clear of the lender's eligibility guidelines and interest payments that come with auto loan financing. A second-chance car loan could be an option if you can't get approved for financing elsewhere. Still, it may not be a smart financial move. You could be better off waiting to purchase and improving your credit health to qualify for more favorable terms in the future. If you do need to borrow a second-chance auto loan, compare lenders and review available terms before applying to decide if the benefits outweigh the costs. Sign in to access your portfolio
CBS News
a day ago
- Business
- CBS News
Plan to apply for credit card debt forgiveness this July? Do these 3 things first.
Credit card debt forgiveness could wipe out some of your existing balance, but you shouldn't necessarily rush into the process. Getty Images/iStockphoto With the average credit card debt around $8,000 currently, it's no wonder that many Americans are searching for debt relief. Combined with the fact that the average credit card interest rate sits just under a record 23% and the reality that compounding interest is making it increasingly difficult to pay off previously manageable balances, credit card debt forgiveness may seem like the solution many borrowers are searching for. And it very well can be. This type of debt relief, for qualified borrowers, can eliminate 30% to 50% of your credit card debt, providing the help you need to get back on track and dig out of debt once and for all. But if you're planning on applying for credit card debt forgiveness soon, there are some things you may want to consider doing first. Instead of immediately applying this July, then, we compiled a list of items that you should consider before taking action. Below, we'll detail three of them. Start by checking your credit card debt forgiveness qualifications online here. 3 things to do before applying for credit card debt forgiveness this July Don't rush into a credit card debt forgiveness plan this summer before first taking these three steps: Determine if you (really) need it Credit card debt forgiveness may seem like a quick way to regain your financial freedom, but it's not exactly quick (it can take 24 to 48 months) and it may not be something you really need anyway. Do you have healthy spending habits? Do you have the budget to pay off what you owe without having to ask for help or forgiveness? Remember, not only will this service take multiple years, but it will also damage your credit score, and it will likely come with tax implications. So take the time, first, to determine if you even need it. You may be surprised by the answer you come up with. Learn more about your credit card debt forgiveness options here. Explore all alternatives You should never pursue your first offer, and fortunately for those in debt, there are multiple options available. Ranging from debt management programs to credit counseling to debt consolidation loans and more, there may be a viable alternative for you that won't come with the lengthy process and credit score ramifications that a debt forgiveness program offers. But you won't know which is the right fit for your unique circumstances until you take the time to explore all of them. Keep credit card debt forgiveness as the backup option until you've fully examined your other, potentially more appropriate, debt relief options. Shop around for servicers Once you've determined your genuine need for credit card debt forgiveness and compared it to all alternatives, you'll want to spend some extra time shopping around for servicers. Not every debt relief company will offer this unique solution, nor will every debt relief company have identical eligibility criteria or fees associated with their programs. It's important, then, to shop around for servicers to find a legitimate one that's most cost-effective for your debt balance (there will be a fee you'll need to pay for this type of help). This will have the unfortunate consequence of delaying a forgiveness program until later in the summer but if the alternative means getting stuck in a program that you can't afford and won't help, it's a delay well worth enduring. The bottom line Credit card debt forgiveness may or may not be the debt relief solution you need this July. By making the three aforementioned moves, however, and by keeping an open mind about your balance and the reasons you got stuck in debt to begin with, you can begin the delayed work of regaining your financial freedom. Just be sure that whatever solution you ultimately decide on is the right one for you, both now and into the future -- and not one that just seemed quick and pain-free this summer. Learn more about your potential debt relief options online today.
CBS News
2 days ago
- Business
- CBS News
3 times HELOC rates could fall this summer
HELOC interest rates could be positioned to decline again later this summer. Getty Images For a few months earlier this year, it felt like interest rates on home equity lines of credit (HELOCs) were on a permanent decline. After cooling for much of 2024, rates on the popular home equity borrowing product dropped to an 18-month low in January, a two-year low in February and another one in March. By early April, the average HELOC interest rate was comfortably below 8%, marking a remarkable two-plus percentage point drop in less than six months. And it seemed possible that rates could fall closer to 7% by the summer. But that possibility hasn't come to fruition, and HELOC rates have made a gradual but steady rise since then to 8.27%, where they currently reside. But since rates here are variable and subject to change monthly, both existing borrowers and prospective ones shouldn't worry too much either. Rates here are still much lower than what can be secured with alternatives like personal loans and credit cards. And they'll decline with no effort (or refinancing costs) on behalf of the borrower. That said, when exactly could HELOC rates fall again? Below, we'll examine three calendar dates when HELOC rates could fall again this summer. Start by seeing what HELOC rate you'd currently qualify for here. 3 times HELOC rates could fall this summer While predicting the future of interest rates is inherently impossible to do with precision, if recent history is any indication (and with an understanding of what drives HELOC rates), they could become cooler on one or more of the following dates this summer: July 15, 2025: The June inflation report release Inflation ticked up by a single basis point in May after falling for a few months prior. Now at just 2.4%, the rate is many percentage points lower than its June 2022 high of over 9%. And with the Federal Reserve's target goal of 2%, inflation is closing in on where the bank wants it to be. Should the next inflation reading released by the Bureau of Labor Statistics on this date show another decline or, potentially, the rate even nearing that 2% goal, it could give the Fed the motivation it needs to reduce rates while offering home equity lenders the data support they need to start preemptively lowering rates in anticipation of a formal cut. Compare your current HELOC rate offers here to determine affordability. July 29, 2025: The July Federal Reserve meeting Earlier this year, many economists and experts were all but guaranteeing that the central bank would reduce rates at their mid-summer meeting. And they still might, should economic conditions change in a way that encourages them to take action. If they do, HELOC rates may decline on or around this date. While not nearly as likely as once expected, the Fed can cut rates here. And, even if they don't, comments made post-meeting about any future rate reductions could be strong enough to cool the rate climate anyway, including those on HELOCs. September 17, 2025: The September Federal Reserve meeting Sure, this is the very end of the summer but this is arguably the most realistic date when borrowers could expect HELOC rates to change. On this date, the Federal Reserve will conclude its two-day September meeting and, with it, likely issue its first rate reduction since December 2024. Right now, the CME Group's FedWatch tool has a cut here listed at more than a 90% likelihood. Yes, economic factors could skew this outlook and, yes, HELOC rates may change before or after the meeting, but if you're trying to time your HELOC application or looking for relief in your current HELOC repayment structure, this is the top time to pay attention to this summer. The bottom line Market conditions are constantly evolving but there's reason for homeowners borrowing with a HELOC to be cautiously optimistic this summer. There are multiple dates in which rates could fall, either individually or collectively. That said, home equity loan rates right now are approximately the same as HELOCs and rates there are fixed. So, if you know you want to borrow home equity but don't want to have to continually monitor the market for changes that could impact your monthly repayments, a home equity loan may be the preferable option.
Yahoo
2 days ago
- Business
- Yahoo
How much can I borrow with a personal loan?
If you need to finance an unexpected cost, such as a high medical or auto repair bill, a personal loan is worth considering. These loans offer flexibility, fairly low rates, and a simple application process — plus, lenders often disburse the money within a couple of business days after you're approved. This makes them a useful alternative to credit cards, which often have high rates and stricter approval requirements. While personal loans have several benefits, an important question remains: How much can you borrow with a personal loan? Here's what to know. The amount you can borrow varies based on the lender, your credit profile, and what you will use the money for. It's common to see minimum loan amounts of $1,000 to $5,000 up to a maximum of $50,000 or even $100,000. However, some lenders offer wider ranges. For example, Navy Federal Credit Union offers personal loans ranging from $250 to $150,000 for qualified borrowers. But just because you can qualify for a large loan doesn't mean you should borrow the full amount. Instead, consider the cost you're covering and how much you actually need to take out. This will help you keep your debt manageable, allowing you to set aside extra funds for things like savings, investing, or other beneficial purposes. Several factors influence how much you can borrow with a personal loan, including: Lender: There's no standard minimum or maximum loan amount. Instead, some lenders may let you borrow as little as $1,000 or as much as $50,000 or $100,000. You may need to shop around to find a lender that offers the amount you need. Credit score: You'll generally need a credit score of at least 580 to qualify for a personal loan, but again, requirements vary by lender. The better your credit, the more likely you are to qualify for a low rate and a large loan. Debt-to-income ratio: Lenders also look at your debt-to-income ratio, or DTI, when you apply for a personal loan. This measures your total monthly debt payments compared to your total monthly income, and it helps lenders determine if you can afford to borrow more money. You may be eligible for a larger loan if you have a low DTI. Income: You need a consistent income to qualify for a personal loan, and how much you earn affects how much you can borrow. High income and low debt could increase your likelihood of qualifying for a large loan. Collateral: Most personal loans are unsecured, meaning collateral isn't required to borrow. However, some lenders allow you to secure a personal loan with something valuable, such as a car, bank account, or investment portfolio. You can likely borrow more if you put down collateral, but the lender can seize your pledged asset if you default on the loan. Loan purpose: How you plan to use the personal loan can also affect how much you qualify for. Lenders may lend you more money for a home improvement project or debt consolidation than they might for a vacation or other discretionary spending. Read more: How to get approved for a personal loan If you're concerned you won't qualify for a large enough loan, there are a few things you can do to increase your borrowing power: Improve your credit: One of the best ways to increase your likelihood of a larger loan is to improve your credit. Ensure you make your monthly debt payments on time, pay down your debt as much as possible, keep your old accounts open, and avoid applying for new credit. Increase your income: Increasing your income might also make you eligible for a larger loan. Besides finding a higher-paying job, you can also request a raise or pick up a side gig to supplement your full-time earnings. Consider a co-borrower: Some lenders let you apply for a personal loan with a co-borrower or co-signer. This is a trusted person in your life — and ideally, someone with great credit — who has equal access to the loan funds and shared responsibility for repaying the debt. If your co-borrower is well qualified, you're likely to get better loan terms and lower rates. If personal loans don't seem like the best fit for your situation, there are alternatives. Here are some options. Some credit cards offer a 0% introductory APR for as long as 18 or 21 months, allowing you to borrow money interest-free during this time. These cards are often reserved for people with excellent credit, but if you can qualify for a card like this, it could give you the flexibility to pay off a large balance without incurring interest charges. Just ensure you pay your card off before the intro period ends, or you could end up with hefty interest charges on any remaining balance. Here are some top 0% APR cards to consider: Chase Freedom Unlimited Capital One VentureOne Rewards Credit Card Blue Cash Everyday® from American Express If you need to borrow a large amount of money and have significant equity in your home, a home equity loan or home equity line of credit (HELOC) could be a good choice. With a home equity loan, you borrow a lump-sum amount and use your home equity as collateral. You'll then make monthly payments on your home equity loan until it's repaid. HELOCs are slightly more flexible. Instead of a lump-sum loan, you open a credit line against your home equity. You can then draw down on this credit line for a set period, often five or 10 years. During this time, you can make interest-only payments on your HELOC. After that, you'll enter a repayment period — often 20 years — during which you'll make full principal and interest payments. This article was edited by Alicia Hahn.
