Latest news with #financial advice
Yahoo
2 days ago
- Business
- Yahoo
B.C. Credit Counselling Society sees surge in younger clients seeking debt relief
A credit counselling service says more and more younger people are looking for financial advice to get out of debt. As CBC's Tanushi Bhatnagar reports, young Vancouverites are less than optimistic about their financial future.
CBC
2 days ago
- Business
- CBC
B.C. Credit Counselling Society sees surge in younger clients seeking debt relief
A credit counselling service says more and more younger people are looking for financial advice to get out of debt. As CBC's Tanushi Bhatnagar reports, young Vancouverites are less than optimistic about their financial future.
Forbes
06-05-2025
- Business
- Forbes
Mortgage Refinance Rates Today: May 6, 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 climbed to 6.92% today, according to the Mortgage Research Center. The 15-year, fixed-rate refinance mortgage average rate is 5.76%. For 20-year mortgage refinances, the average rate is 6.71%. Related: Compare Current Refinance Rates Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.92%, up 0.82% from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $660 per month for principal and interest at the current interest rate, according to the Forbes Advisor mortgage calculator , not including taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $138,325. Another way of looking at loan costs is the annual percentage rate, or APR . For a 30-year, fixed-rate mortgage, the APR is 6.95%, higher than last week's 6.89%. The APR is essentially the all-in cost of the home loan. The 20-year fixed mortgage refinance average rate stands at 6.71%, versus 6.62% last week. The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.75%. It was 6.67% last week. At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $758 per month in principal and interest. That doesn't include taxes and fees. That borrower would pay roughly $82,445 in total interest over the life of the loan. For a 15-year fixed refinance mortgage, the average interest rate is currently 5.76%. The same time last week, the 15-year fixed-rate mortgage stood at 5.84%. The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.81%. Last week, it was 5.89%. Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $831 per month in principal and interest—not including taxes and fees. That would equal about $50,053 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) increased week-over-week to 7.27%, versus 7.22% last week. At today's interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $683 per month in principal and interest on a $100,000 loan. A 15-year, fixed-rate jumbo mortgage refinance is 6.43% on average, about the same as last week. At today's interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $867 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $56,345 in total interest. Mortgage lenders charge different interest rates for purchase and refinance loans. Current refinance rates are typically 0.01% to 0.15% higher for a 30-year fixed rate versus a purchase loan. You can reduce your interest rate by paying your closing costs up front instead of rolling them into the loan with a no-closing-cost refinance loan . Buying discount points and avoiding mortgage insurance can also help. 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. National average mortgage rates have remained in the middle-to-high 6% range since the final quarter of 2024, and experts expect this trend to continue throughout the first half of 2025. Although forecasting mortgage interest rates is challenging, economic indicators like inflation and unemployment rates can provide insights into the direction of the housing market. For example, if inflation slows and national unemployment levels remain stable or rise, the Federal Reserve may cut the federal funds rate, which could lead to lower mortgage rates. On the other hand, if inflation stays high and unemployment decreases, rates are likely to remain steady. Since mortgage rates are expected to experience minimal movement 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 making on-time payments will allow you to secure the best possible rate when you begin shopping for refinance offers. Frequently Asked Questions (FAQs) 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. 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. Our guide to the best mortgage refinance lenders is a good starting point, but make sure you compare multiple lenders and get more than one quote. It's always a good idea to find out the closing costs lenders charge, and also to make sure you can communicate easily with your lender. Conditions in the housing market change frequently, so being able to depend on your lender is crucial.
Forbes
06-05-2025
- Business
- Forbes
Mortgage Rates Today: May 6, 2025 - Rates Remain Fairly Steady
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Currently, the average interest rate on a 30-year fixed mortgage is 6.83%, compared to 6.77% a week ago, according to the Mortgage Research Center. For borrowers who want to pay off their home faster, the average rate on a 15-year fixed mortgage is 5.77%, down 1.08% from the previous week. If you're thinking about refinancing to lock in a lower rate, compare your existing mortgage rate with current market rates to make sure it's worth the cost to refinance. Borrowers will pay more in interest this week as the average rate on a 30-year mortgage is 6.83% compared to a rate of 6.77% a week ago. The APR , which includes the interest and all of the lender fees, on a 30-year, fixed-rate mortgage is 6.86%. The APR was 6.8% last week. To borrow a $100,000 in a 30-year, fixed-rate mortgage with the current rate of 6.83%, you will pay about $654 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You'd pay around $136,206 in total interest over the life of the loan. Today's 15-year mortgage (fixed-rate) is 5.77%, down 1.08% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.84%. The APR on a 15-year fixed is 5.82%. It was 5.89% a week earlier. A 15-year, fixed-rate mortgage with today's interest rate of 5.77% will cost $832 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $50,188 in total interest. The current average interest rate on a 30-year, fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) is 7.24%—0.63% higher than last week. A 30-year jumbo mortgage at today's fixed interest rate of 7.24% will cost you $681 per month in principal and interest per $100,000. That adds up to around $145,754 in total interest over the life of the loan. Although mortgage rates mainly fell after reaching a high in spring 2024, they surged again in October 2024. This is despite the Federal Reserve's cuts to the federal funds rate (its benchmark interest rate) in September, November and December 2024. While rates have fallen somewhat since mid-January 2025, experts don't expect them to drop significantly anytime soon. Various economic factors influence mortgage rates, making it challenging to forecast when rates will drop . The Federal Reserve's decisions significantly impact mortgage rates. In response to inflation or an economic downturn, the Fed may lower its federal funds rate, prompting lenders to reduce mortgage rates. Mortgage rates also track U.S. Treasury bond yields. If bond yields drop, mortgage rates typically follow suit. Finally, global events that cause financial disruptions can affect mortgage rates. For example, the Covid-19 pandemic led to record-low interest rates when the Fed cut rates. While a significant decrease in mortgage rates is unlikely in the near future, they may start to decline if inflation eases or the economy weakens. Mortgages and mortgage lenders are often a part of purchasing a home, but it can be tough to understand what you're paying for—and what you can truly afford. Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses. Here's what you'll need in order to calculate your monthly mortgage payment: Home price Down payment amount Interest rate Loan term Taxes, insurance and any HOA fees Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don't charge mortgage insurance premiums or similar ongoing charges that increase the loan's APR . Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees. Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate. The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases. Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%. For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy. For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan. Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn't require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan. If you come from a qualifying military background, VA loans can be your best option. First, you don't need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don't pay an annual fee as the FHA and USDA loan programs require. Frequently Asked Questions (FAQs) A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. Several factors impact mortgage rates, including the repayment term, loan type and borrower's credit score. Most rate locks last 30 to 60 days and your lender may not charge a fee for this initial period. However, extending the rate lock period up to 90 or 120 days is possible, depending on your lender, but additional costs may apply. National average interest rates depend on economic and market conditions, including the bond market, inflation, the economy and Federal Reserve decisions. Lenders set rates based on the loan type and term. In general, shorter terms tend to come with lower rates. Additionally, making a larger down payment signals less risk to the lender, which could get you a better rate. Other factors that can impact your rate include your credit score, debt-to-income (DTI) ratio, income and property location.
