CBS News
How to find the best mortgage rate this October, according to experts
The past two years have seen mortgage interest rates soar, pricing many potential homebuyers out of the market. But things are looking up. Mortgage interest rates have fallen to their lowest point in two years and the Federal Reserve just cut rates for the first time this year. Analysts predict more cuts could follow, potentially easing the path to homeownership for many Americans.
Despite this more favorable climate, finding the right mortgage for your situation can be tricky. While a lower rate can save you money over time, experts emphasize that the lowest rate isn’t always the best deal. So how do you find a mortgage that fits your needs in October’s changing market? We asked three mortgage specialists for advice. Below we gathered their recommendations for finding the best rates this fall.
Start by seeing how low of a mortgage interest rate you could secure here.
How to find the best mortgage rate this October, according to experts
Three key strategies could help you find a better rate: improving your credit score, exploring different loan types and looking beyond the interest rate. Let’s look into each in greater detail:
Improve your credit score
Before you start shopping for a mortgage, take a close look at your credit report.
“[I’ve seen many cases] where [I’m] pre-approving a client to purchase a home and [we discover] errors or incorrect debts [on their credit report] … impacting their ability to qualify for a loan,” warns Joel Berman, a senior loan officer at Synergy One Lending, Inc.
He suggests getting a copy of your report and checking it carefully for mistakes. If you spot any errors, dispute them right away.
Once you’ve confirmed your report is accurate, improve your credit score if it’s low. “The quickest way to boost your credit score is to pay down credit card balances … and always pay bills on time,” says Debbie Calixto, sales manager at loanDepot.
She recommends keeping your credit card balance at 30% or below your credit limit. Dean Rathbun, a mortgage loan officer at United American Mortgage Company agrees, noting that low credit use shows lenders you can manage credit responsibly. This works in your favor when trying to get a lower mortgage rate.
See what rate you’re currently eligible for here now.
Consider different loan types
Calixto explains that your ideal loan type depends on several factors including credit scores, down payment and property type.
For example, if you’ve served in the military, a VA loan might offer you a no-down-payment option with a lower rate. If your credit score isn’t perfect, an FHA loan could be a good choice, with down payments as low as 3.5%.
But don’t assume a 30-year fixed-rate mortgage is your only option. Calixto points out that many homebuyers don’t plan to stay in their first home for three decades.
“Adjustable-rate mortgages (ARMs) may [give you] a lower rate during the fixed-rate [term],” she explains. Pursuing one of these could make sense if you’re moving in a few years or expect your income to increase over time.
Look beyond the interest rate
“One of the worst things a borrower can do is be so rate-focused they miss what’s important,” says Berman.
Why? The advertised rate doesn’t always tell the full story. For instance, you might find an incredibly low rate online, only to learn it comes with hefty fees.
A borrower who sees a rate “way below market pricing … may not [realize it] comes with a 2%-point buy-down fee,” Berman notes. He also points out that some online lenders make it hard to speak with a real person, which is frustrating when you have questions or concerns.
Instead of chasing the lowest advertised rate, Berman suggests working with a local mortgage loan officer.
They can offer competitive rates and their experience and you’ll have someone to discuss your options with in person. This face-to-face interaction can make negotiating easier and help you understand all aspects of your loan — not just the interest rate.
Remember, the goal is to find the best overall deal, not just the lowest number.
The bottom line
While rates are trending down, experts advise focusing on what works for you right now, rather than scouring or waiting for the lowest rates. “I always recommend locking in an interest rate when a homebuyer is comfortable with the payment and the costs,” says Calixto.
Rathbun adds a word of caution about sitting on the sidelines for too long: “If [you] wait for rates to go down to purchase a home, [you’ll likely compete] with other buyers … bidding the house up to a higher price.”
So, what’s your next move to finding the best mortgage rate this month?
Start by checking your credit report and improving your score if needed. Then, talk to several local mortgage officers. Discuss different loan types and get a full picture of rates, fees and terms. The best rate for you is one that fits your overall financial situation and home-buying goals.
CBS News
In praise of Seattle-style teriyaki
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
CBS News
Gazan chefs cook up hope and humanity for online audience
Renad Atallah is an unlikely internet sensation: a 10-year-old chef, with a repertoire of simple recipes, cooking in war-torn Gaza. She has nearly a million followers on Instagram, who’ve witnessed her delight as she unpacks parcels of food aid.
We interviewed Renad via satellite, though we were just 50 miles away, in Tel Aviv. [Israel doesn’t allow outside journalists into Gaza, except on brief trips with the country’s military.]
“There are a lot of dishes I’d like to cook, but the ingredients aren’t available in the market,” Renad told us. “Milk used to be easy to buy, but now it’s become very expensive.”
I asked, “How does it feel when so many people like your internet videos?”
“All the comments were positive,” she said. “When I’m feeling tired or sad and I want something to cheer me up, I read the comments.”
We sent a local camera crew to Renad’s home as she made Ful, a traditional Middle Eastern bean stew. Her older sister Noorhan says they never expected the videos to go viral. “Amazing food,” Noorhan said, who added that her sibling made her “very surprised!”
After more than a year of war, the Gaza Strip lies in ruins. Nearly everyone has been displaced from their homes. The United Nations says close to two million people are experiencing critical levels of hunger.
Hamada Shaqoura is another chef showing the outside world how Gazans are getting by, relying on food from aid packages, and cooking with a single gas burner in a tent.
Shaqoura also volunteers with the charity Watermelon Relief, which makes sweet treats for Gaza’s children.
In his videos online, Shaqoura always appears very serious. Asked why, he replied, “The situation does not call for smiling. What you see on screen will never show you how hard life is here.”
Before dawn one recent morning in Israel, we watched the UN’s World Food Program load nearly two dozen trucks with flour, headed across the border. The problem is not a lack of food; the problem is getting the food into the Gaza Strip, and into the hands of those who desperately need it.
The UN has repeatedly accused Israel of obstructing aid deliveries to Gaza. Israel’s government denies that, and claims that Hamas is hijacking aid.
“For all the actors that are on the ground, let the humanitarians do their work,” said Antoine Renard, the World Food Program’s director in the Palestinian territories.
I asked, “Some people might see these two chefs and think, well, they’re cooking, they have food.”
“They have food, but they don’t have the right food; they’re trying to accommodate with anything that they can find,” Renard said.
Even in our darkest hour, food can bring comfort. But for many in Gaza, there’s only the anxiety of not knowing where they’ll find their next meal.
For more info:
Story produced by Mikaela Bufano. Editor: Carol Ross.
See also:
“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.
CBS News
A study to devise nutritional guidance just for you
It’s been said the best meals come from the heart, not from a recipe book. But at this USDA kitchen, there’s no pinch of this, dash of that, no dollops or smidgens of anything. Here, nutritionists in white coats painstakingly measure every single ingredient, down to the tenth of a gram.
Sheryn Stover is expected to eat every crumb of her pizza; any tiny morsels she does miss go back to the kitchen, where they’re scrutinized like evidence of some dietary crime.
Stover (or participant #8180, as she’s known) is one of some 10,000 volunteers enrolled in a $170 million nutrition study run by the National Institutes of Health. “At 78, not many people get to do studies that are going to affect a great amount of people, and I thought this was a great opportunity to do that,” she said.
It’s called the Nutrition for Precision Health Study. “When I tell people about the study, the reaction usually is, ‘Oh, that’s so cool, can I do it?'” said coordinator Holly Nicastro.
She explained just what “precise” precisely means: “Precision nutrition means tailoring nutrition or dietary guidance to the individual.”
The government has long offered guidelines to help us eat better. In the 1940s we had the “Basic 7.” In the ’50s, the “Basic 4.” We’ve had the “Food Wheel,” the “Food Pyramid,” and currently, “My Plate.”
They’re all well-intentioned, except they’re all based on averages – what works best for most people, most of the time. But according to Nicastro, there is no one best way to eat. “We know from virtually every nutrition study ever conducted, we have inner individual variability,” she said. “That means we have some people that are going to respond, and some people that aren’t. There’s no one-size-fits-all.”
The study’s participants, like Stover, are all being drawn from another NIH study program called All Of Us, a massive undertaking to create a database of at least a million people who are volunteering everything from their electronic health records to their DNA. It was from that All of Us research that Stover discovered she has the gene that makes some foods taste bitter, which could explain why she ate more of one kind of food than another.
Professor Sai Das, who oversees the study at Tufts University, says the goal of precision nutrition is to drill down even deeper into those individual differences. “We’re moving away from just saying everybody go do this, to being able to say, ‘Okay, if you have X, Y and Z characteristics, then you’re more likely to respond to a diet, and somebody else that has A, B and C characteristics will be responding to the diet differently,'” Das said.
It’s a big commitment for Stover, who is one of 150 people being paid to live at a handful of test sites around the country for six weeks – two weeks at a time. It’s so precise she can’t even go for a walk without a dietary chaperone. “Well, you could stop and buy candy … God forbid, you can’t do that!” she laughed.
While she’s here, everything from her resting metabolic rate, her body fat percentage, her bone mineral content, even the microbes in her gut (digested by a machine that essentially is a smart toilet paper reading device) are being analyzed for how hers may differ from someone else’s.
Nicastro said, “We really think that what’s going on in your poop is going to tell us a lot of information about your health and how you respond to food.”
Stover says she doesn’t mind, except for the odd sounds the machine makes. While she is a live-in participant, thousands of others are participating from their homes, where electronic wearables track all kinds of health data, including special glasses that record everything they eat, activated when someone starts chewing. Artificial intelligence can then be used to determine not only which foods the person is eating, but how many calories are consumed.
This study is expected to be wrapped up by 2027, and because of it, we may indeed know not only to eat more fruits and vegetables, but what combination of foods is really best for us. The question that even Holly Nicastro can’t answer is, will we listen? “You can lead a horse to water; you can’t make them drink,” she said. “We can tailor the interventions all day. But one hypothesis I have is that if the guidance is tailored to the individual, it’s going to make that individual more likely to follow it, because this is for me, this was designed for me.”
For more info:
Story produced by Mark Hudspeth. Editor: Ed Givnish.
“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.