Fixed-Rate Mortgages | WEOKIE Federal Credit Union (2024)

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Fixed-Rate Mortgages | WEOKIE Federal Credit Union? ›

While costs will always vary between institutions, when it comes to mortgage loan rates, credit unions often have much better rates. Credit unions are able to offer low mortgage rates, much lower than banks, because they borrow against themselves, being responsible to their own depositors vs.

While costs will always vary between institutions, when it comes to mortgage loan rates, credit unions often have much better rates. Credit unions are able to offer low mortgage rates, much lower than banks, because they borrow against themselves, being responsible to their own depositors vs.

The current average mortgage rate for a five-year fixed rate mortgage is 5.04%, unchanged from last week.

5 year fixes allow you to take advantage of rates for a longer period, and avoid the hassle and cost of remortgaging every 2 years. You could also benefit from any house price appreciation, which can increase your equity and improve your loan-to-value ratio, making you eligible for lower rates when you remortgage.

The benefit of a fixed-rate mortgage is that your interest rate stays consistent. But your monthly mortgage bill can still change — in fact, it generally fluctuates at least a little bit every year. Rising home values and insurance premiums have caused unusually dramatic increases for some homeowners in recent years.

Even closing costs can be lower with a credit union than with a bank. The entire mortgage application and underwriting process should be much quicker and easier with a credit union due to its close-knit structure.

As of June 12, 2024, the average 30-year fixed mortgage rate is 6.99%, 20-year fixed mortgage rate is 6.78%, 15-year fixed mortgage rate is 6.20%, and 10-year fixed mortgage rate is 6.07%. Average rates for other loan types include 6.87% for an FHA 30-year fixed mortgage and 7.02% for a jumbo 30-year fixed mortgage.

If you are worried about how high your monthly mortgage payments could rise in the future, then fixing your mortgage rate remains a sensible choice. It means that it is important to shop around to find the best fixed-rate mortage deal as rates could remain elevated for some time.

The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025. However, recent economic developments have led some forecasters to believe that rates will remain elevated at around 7% for the remainder of this year.

Should I fix my mortgage now in 2024? ›

The mortgage rate forecast for 2024 is that rates are expected to go down, although it may take longer than had previously been hoped. In June 2024, we're seeing a mixed picture with the best mortgage rates on fixed rate mortgages; some are nudging up while others are being trimmed.

Rates also increased dramatically last year, though they trended back down toward the end of 2023. As inflation comes down, mortgage rates will recede as well. Most major forecasts expect rates to go down later in 2024.

Once you find a rate that is an ideal fit for your budget, lock in the rate as soon as possible. There is no way to predict with certainty whether a rate will go up or down in the weeks or even months it sometimes takes to close your loan.

Escrow Changes

Changes in the price of your property taxes or homeowners insurance are among the most common causes of a mortgage payment increase. These funds are traditionally held in an escrow account connected with your mortgage payment.

If you pay your homeowners insurance expenses as part of your monthly mortgage payment, an increased premium rate can raise your monthly mortgage payment amount and have a major impact on your finances.

Yes, you can refinance a 30-year fixed mortgage. By doing so, you could secure a lower interest rate, which might reduce your monthly payments. It's a common choice if rates have dropped since your original mortgage was issued or if your financial situation has improved and you now qualify for better terms.

On average, credit unions offer higher saving rates and lower loan rates. This could help group your savings grow faster and your loan will cost less. Credit unions also tend to charge lower fees, require lower deposit balances and offer better service.

Getting a mortgage from a bank

However, any lender you select won't necessarily have the best rates available to you, even your own bank. It's important to compare mortgages before selecting a lender directly, as they'll only be able to offer you the best option from their own range.

The benefits of selecting a local lender are many. After you apply, the loan underwriting tends to be a lot quicker. That is because they have a deep understanding of the markets they serve and use this information to help you. Plus, local lenders tend to offer better rates as well as other types of financial services.

Key insights. Mortgage lenders and banks both offer mortgages, but mortgage lenders often provide more options and a faster underwriting process. Banks provide a wide range of financial products, mortgages included, but don't have as personal of an approach.