On November 23rd, mortgage and refinance rates are currently at historic lows with the 30-year fixed rate mortgages averaging 3.0%. Refinancing mortgage loans are also at attractive rates with the 15-year fixed rates averaging 2.5%.
For those interested in purchasing a home, there are plenty of attractive loan offerings on the market. For instance, adjustable-rate mortgages (ARMs) are a great option for first-time homebuyers, as they often feature lower initial rates than fixed-rates, though can increase after a certain period of time. As of November 23rd, the 5/1 ARM is averaging 2.8%.
In addition to historically low mortgage and refinance rates, the month of November has seen some additional good news for home buyers. In early November, the federal government announced that it’s increasing the maximum loan amounts allowed through the Federal Housing Administration. That makes it easier for first-time homebuyers, borrowers with imperfect credit scores and those with lower down payments to qualify for a mortgage.
Those looking to take advantage of low rates should also consider their credit score and other factors that can enhance their loan rate. Obtaining a prequalification letter from a lender can be a great way to determine what type of home loan and rate you may qualify for.
Overall, November 2020 has been a great month for those looking to buy or refinance a home due to low interest rates and increased loan amounts. With the end of the year rapidly approaching, now is the time to take advantage of these low rates before they disappear.
Analysis: Low mortgage and refinance rates in November 2020 make this a prime opportunity for homeowners and homebuyers to take advantage of the market. The 30-year fixed rate mortgages are averaging 3.0%, while 15-year fixed rates are averaging 2.5%. Adjustable rate mortgages are also attractive, with the 5/1 ARM averaging 2.8%.
The federal government has also increased the maximum loan amounts allowed through the Federal Housing Administration, making it easier for first-time homebuyers, people with imperfect credit scores, and those with lower down payments to qualify for mortgages. People should still take into consideration their credit score as well as other factors that can influence their loan rate. They should also obtain a prequalification letter from a lender to determine what type of loan and rate they may qualify for.
November 2020 has been a great month for those looking to purchase or refinance a home due to the low prices and increased loan amounts. These beneficial rates are likely to disappear by the end of the year, so those interested should take advantage of the opportunity swiftly.
This article was contributed on Oct 29, 2023
