Mortgages

Just Locked In a 3.75% Fixed Rate 30-Year Mortgage

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My wife and I refinanced our mortgage earlier this year. We had a 30-year fixed-rate loan at 5.625%. We refinanced with no points to a 30-year fixed rate at 4.875%. I was convinced at the time that we would never refi our mortgage again. Boy was I wrong. In fact, just last week we locked in a rate of 3.75% fixed for 30 years with NO closing costs!

And you may be able to qualify for an even lower rate. We have what’s called a super-conforming loan. In some areas of the country, the conforming loan limits are higher than in other areas. While that keeps us away from the higher rates of a jumbo loan, super-conforming rates are still higher than conforming loans. And if you really want to pay down your loan fast, you could consider an even lower rate 15-year mortgage. We were quoted 3.25% on a 15-year refinance.

Mortgage rates dropped lower over the last few days because of the Fed’s “twist” maneuver. The Fed announced its plan to sell short-term securities and use the proceeds to purchase long-term and mortgage-backed securities. This lowered the yield on the 10-year treasury note, which is used to set mortgage rates. It may seem odd to use a 10-year bond to set 30-year mortgage rates, but they do this because the average mortgage is paid off in less than 10 years as folks refinance a mortgage or move.

How long these low rates will last is anybody’s guess. But even if you recently refinanced, you may want to look at rates again. Check out our guide to snagging the best mortgage rates of 2022 and use the tool below to calculate what your monthly mortgage payment could be using the current rates:


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