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How to get a 6% (or lower) mortgage rate right now
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Last week’s Federal Reserve rate cut has led to a unique opportunity for homebuyers to secure more favorable mortgage rates. In the days leading up to the cut, mortgage rates began to drop, with lenders preemptively pricing in the expected reduction. This resulted in mortgage rates falling to a two-year low of 6.15%, easing some of the financial pressure on homebuyers.
While a 6.15% mortgage rate may not be as enticing as the 3% rates that were offered during the pandemic, it still represents a significant improvement from the latter part of 2023, when mortgage rates were hovering dangerously close to the 8% mark. But the 50-basis-point rate cut announced by the Fed, which exceeded many analysts’ expectations by twofold, further accelerated the downward trend, leading mortgage rates to fall to an average of 6.13%, where they currently sit.
For prospective homebuyers, this shift in the market presents an opportune moment to lock in a good rate on a mortgage loan. However, if you’re aiming to secure an even more favorable rate, there are several strategies you can use to potentially lock in a mortgage rate of 6% or lower now.
Start by seeing how low of a mortgage interest rate you’d be eligible for here.
How to get a 6% (or lower) mortgage rate right now
Here are three effective ways to secure a mortgage rate at or below 6% right now.
Buy mortgage points
One of the most straightforward ways to reduce your mortgage rate is by purchasing mortgage points. A mortgage point is essentially an upfront fee you pay to your lender at closing to reduce your interest rate over the life of the loan. One point typically costs 1% of your loan amount and generally reduces your interest rate by 0.25%, though this can vary by lender.
For example, if you’re looking at a $300,000 mortgage with a 6.13% interest rate, purchasing one point would cost you $3,000 but could bring your rate down to approximately 5.88%. The more points you buy, the more you lower your rate — though, naturally, this comes with a higher upfront cost.
That said, it’s important to assess how long you plan to stay in your home when considering this option. If you plan to stay in the property for several years or more, the upfront cost can be well worth the savings you’ll accumulate from a lower monthly payment. But if you’re not planning on living there for the long term, the cost of buying points may outweigh the interest savings.
Explore your top mortgage loan options online now.
Opt for a 15-year mortgage loan
Another route to securing a lower mortgage rate is to choose a 15-year mortgage rather than the traditional 30-year loan. Right now, rates on 15-year mortgages are averaging around 5.49%, which is significantly lower than the 6.13% average for 30-year mortgage loans.
A shorter-term loan means you’ll be paying off the mortgage faster, which typically translates to less risk for the lender. In turn, lenders reward borrowers with lower interest rates. The downside is that your monthly payment will be higher because you’re repaying the loan in half the time, but the overall savings in interest over the life of the loan can be substantial.
For example, on a $300,000 mortgage, a 15-year loan at 5.49% would have higher monthly payments than a 30-year loan at 6.13%, but you’d pay far less in interest overall and build equity much faster. If you have the financial flexibility to manage a higher monthly payment, this is one of the most effective ways to get a mortgage rate under 6%.
Consider an ARM loan
Adjustable-rate mortgages (ARMs) offer another way to secure a lower rate. Unlike fixed-rate mortgages, ARMs offer an introductory period where the interest rate is fixed, generally for five, seven or 10 years. After that, the mortgage rate adjusts annually based on current market conditions.
The key benefit of an ARM is the lower initial rate, which averages 5.77% currently. And given that many analysts expect further Fed rate cuts in the near future, it’s possible that mortgage rates could drop even further, making ARMs an appealing option for those willing to take on a bit more risk.
However, it’s important to be cautious with ARM loans, as the rate can also increase after the fixed period ends (depending on the overall rate environment). This means your payments could rise significantly if interest rates climb in the future. But in a falling rate environment, such as the one we’re currently in, an ARM could offer substantial savings for the right borrower.
The bottom line
While today’s mortgage rates are much more favorable than they were just a few months ago, savvy buyers may be able to push their rates even lower by employing the strategies outlined above. Each of these approaches comes with its own pros and cons, so it’s important to evaluate your long-term financial goals, risk tolerance and future plans before deciding which strategy makes the most sense for you. But if you’re in the market for a home, this is a great time to explore your options.
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How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
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The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
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How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
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The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.