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Shopping for mortgage interest rates now? Look for these 3 things
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If you’re a homebuyer who has been patiently waiting for mortgage interest rates to fall — or a homeowner saddled with a high rate looking to refinance — the wait for relief may soon be over. The Federal Reserve is set to issue its first interest rate cut since 2020 this week and while that may not match up with a direct cut to mortgage rates, it will help move them in a downward direction. Combined with additional cuts to the federal funds rate likely for November, December and possibly even into 2025, both buyers and owners are now positioned to secure significant financial relief.
One of the best ways to find a lower mortgage interest rate is to shop around to compare rates and lenders. It’s easy to do so with rates listed both on lender websites and multiple offers listed in one location via online marketplaces. But when you’re shopping for mortgage interest rates it’s critical to know exactly what you’re looking at to accurately complete a lender comparison. So what should you be keeping an eye out for, specifically? Below, we’ll detail three things to look for when shopping for mortgage interest rates in today’s climate.
See what mortgage rate you’d be eligible for here now.
What to look for when shopping for mortgage interest rates
While the mortgage interest rates you see listed online now and later this week may appear low, there are some things you should check to help verify what’s listed. Specifically, look for:
Mortgage points
Mortgage points serve as a fee the borrower pays to the lender to secure a below-average interest rate. These can be pricey (often 1% of the total mortgage loan) but can still be advantageous in the right scenario. That said, some lenders may have already preemptively included mortgage points in the rate they list on their website, thus making their offers appear lower than they are. You’ll need to agree to pay these points to get that offer. So be sure to look for any fine print or disclosures listed when shopping around to determine if this is the case. If so, the rate without the points included could be significantly higher than what you see.
You can shop for rates and lenders in one spot online today.
Lender profile
Another factor to consider when shopping for mortgage interest rates is the presumed lender profile the bank has for those doing their research. In other words, the rate you see listed may be for those with the most attractive lender profile possible. If you don’t have a clean credit profile and a score in the 800 range, then, what you see being offered may not be what you can get. So don’t be surprised if the rate you’re ultimately offered is significantly higher than what you saw listed online. And don’t hesitate to start working on your credit now so that you can better position yourself to secure more attractive rates and terms
The time the rate was posted
Mortgage interest rates change daily, except for weekends and holidays, so it’s critical to monitor them often. When you do, however, try to see if you can determine the exact time the rate was posted. For example, if you check mortgage interest rates on Thursday before an interest rate decision is formally announced, you may not be seeing a rate reflective of that adjustment. In this case, waiting to see how that cut has reverberated through the market could be worthwhile (in which case rate offers on Friday may be timelier – and lower).
The bottom line
Mortgage rate shopping is a critical component of the homebuying process but it’s equally important to complete a thorough and accurate search. This means understanding that the rates you see listed may not be what you’re ultimately offered as the public-facing rates often account for mortgage points and a specific lender profile. They’re also reflective of a specific time and date. This may not apply to all lenders, especially in today’s dynamic rate climate. But it’s something to look for to improve your chances of securing the most cost-effective rate and term available, particularly now with rate cuts looming.
Have more mortgage rate questions? Learn more here.
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With the fall semester coming to an end and the spring semester fast approaching, undergraduate, graduate and professional students who must borrow to pay tuition or living expenses should start exploring student loan options sooner rather than later. Borrowers can take out federal loans, including direct subsidized or unsubsidized loans, Grad PLUS loans or Parent PLUS oans. However, these federal loans have annual and lifetime limits and come with a fixed interest rate set by law.
Private student loans are another option, though, and they come with some big benefits. With interest rates dropping and the likelihood of federal loan forgiveness diminishing as the Trump Administration takes office, private student loans may, in fact, be the best option for some borrowers. Rates and terms for private lenders can vary from one lender to another, though, unlike with federal loans.
As a result, it’s important to understand how to get a low rate on these loans for the spring 2025 semester.
Find out how affordable a private student loan could be now.
How to get a low student loan rate for the spring 2025 semester
Here’s what experts say you can do to keep your borrowing costs affordable as you move into the spring semester.
Shop around among private student loan lenders
Many banks, credit unions and online lenders offer private student loans — and it’s important to explore all of your options if you want your loans to be as affordable as possible.
“Always shop around to see what the best possible rates are available to you,” says Domenick D’Andrea, co-founder at DanDarah Wealth Management.
Jack Wang, a wealth advisor and college financial aid advisor at Innovative Advisory Group agreed, noting that “rates on private student loans can vary significantly.”
Most private student loan lenders allow you to get rates quotes online, often without a hard credit inquiry, so your credit score won’t be impacted. However, as you’re shopping around, you must be sure you’re comparing similar loan offers.
“Loan terms impact the rate,” says Wang. “For example, borrowers can choose a fixed or variable rate, whether payments are required during school, and the loan repayment time.”
By focusing on all of these details, you can compare multiple loan offerings and understand monthly payments, total borrowing costs and how long it will take to be debt-free after graduation.
Start comparing your top private student loan options online now.
Improve your credit
It’s also a good idea to get your finances in order if you want to get the best student loan rates.
“Generally, the lowest interest rates are for those with the best credit and debt-to-income ratio, who also pick full payments while in school and who pick the shortest repayment term,” Wang says. “After all, these terms reduce the risk for the lender.”
D’Andrea suggests that you take steps like paying down existing debt to reduce your debt-to-income ratio and limiting the number of new credit cards and loans you apply for, as applying for too much new debt can hurt your credit score. It’s also important to make all loan payments on time to avoid lowering your credit score, D’Andrea says.
The more qualified you are as a borrower, the more loans you’ll be eligible for and the lower your rates will be.
Apply with a cosigner
Unfortunately, improving your credit can take time and it’s often not possible to do things like increasing your income while you are in school. The good news is that you still have options to pursue a private loan at an affordable rate even if your credit is less than stellar.
“Investigate a cosigner if you have a limited credit history or considerable debt already,” D’Andrea says.
A cosigner agrees to share responsibility for your loans. You’ll need to provide their financial details when you apply. If they have more income or better credit, their credentials can help you borrow more affordably.
Starting shopping early
The last key to getting an affordable loan is to start the process early.
“People tend to shop for student loans according to their college billing cycle. So if a college bills by semester, busy times tend to be early summer for fall bills, and November or December for spring bills,” Wang says.
While Wang notes that there’s no time during the year when loans go “on sale” and no specific seasonality to shopping for student loan rates, it can still be smart to start the process of borrowing sooner rather than later. The simple reason for that is that you’ll have more time to compare rates and terms — and to take steps like lining up a cosigner if you aren’t being offered great rates.
The bottom line
You don’t want to end up in a situation where spring tuition is due, you don’t have a loan yet and you’re forced to accept the first loan you’re offered despite unfavorable terms. If you get started comparing rates and offers today, you’ll have plenty of time to find the loan that’s best for your situation.
Washington — The Georgia Court of Appeals on Thursday ruled that Fulton County District Attorney Fani Willis must be removed from the 2020 election case against President-elect Donald Trump, reversing a trial judge’s decision that allowed her to remain on the case.
Trump and more than a dozen allies were charged last year by Fulton County prosecutors related to what they said was an alleged scheme to overturn the results of the 2020 election in Georgia. The president-elect pleaded not guilty.
“After carefully considering the trial court’s findings in its order, we conclude that it erred by failing to disqualify DA Willis and her office,” the Georgia Court of Appeals said in its decision.
This is a breaking news story and will be updated.
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How to get a low student loan rate for the spring 2025 semester
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