{"id":260,"date":"2025-02-28T16:02:47","date_gmt":"2025-02-28T17:02:47","guid":{"rendered":"http:\/\/www.pacific-hydro.com\/?p=260"},"modified":"2025-02-28T22:50:15","modified_gmt":"2025-02-28T22:50:15","slug":"mortgage-rates-today-february-28-2025-rates-remain-fairly-steady","status":"publish","type":"post","link":"http:\/\/www.pacific-hydro.com\/index.php\/2025\/02\/28\/mortgage-rates-today-february-28-2025-rates-remain-fairly-steady\/","title":{"rendered":"Mortgage Rates Today: February 28, 2025 \u2013 Rates Remain Fairly Steady"},"content":{"rendered":"<div id=\"mrc-mortgage-rate-table-wrapper-67c23999247f7\"><\/div>\n<p>The <a>current mortgage rate<\/a> on a 30-year fixed mortgage fell by 0.20 percentage point in the last week to 6.6%, according to the Mortgage Research Center.<\/p>\n<p>Meanwhile, the APR on a 15-year fixed mortgage dropped 0.25 percentage point during the same period to 5.68%.<\/p>\n<p>For existing homeowners, compare your current mortgage rates with <a>today&#8217;s refinance rates<\/a>.<\/p>\n<p>!function(){&#8220;use strict&#8221;;window.addEventListener(&#8220;message&#8221;,(function(a){if(void 0!==a.data[&#8220;datawrapper-height&#8221;]){var e=document.querySelectorAll(&#8220;iframe&#8221;);for(var t in a.data[&#8220;datawrapper-height&#8221;])for(var r=0;r&lt;e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[&quot;datawrapper-height&quot;][t]+&quot;px&quot;;e[r].style.height=i}}}))}(); <\/p>\n<h2>30-Year Mortgage Rates<\/h2>\n<p>Today, the average rate on a 30-year mortgage is 6.6%, compared to last week when it was 6.81%.<\/p>\n<p>The annual percentage rate (APR) on a 30-year, fixed-rate mortgage is 6.64%. The APR was 6.84% last week. <a>APR<\/a> is the all-in cost of your loan.<\/p>\n<p>With today&#8217;s interest rate of 6.6%, a 30-year fixed mortgage of $100,000 costs approximately $639 per month in principal and interest (taxes and fees not included), the Forbes Advisor <a>mortgage calculator<\/a> shows. Borrowers will pay about $130,012 in total interest over the life of the loan.<\/p>\n<h2>15-Year Mortgage Rates<\/h2>\n<p>Today, the <a>15-year mortgage<\/a> rate dropped to 5.68%, lower than it was one day ago. Last week, it was 5.93%.<\/p>\n<p>On a 15-year fixed, the APR is 5.73%. Last week it was 5.99%.<\/p>\n<p>With an interest rate of 5.68%, you would pay $826 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $48,752 in total interest.<\/p>\n<h2>Jumbo Mortgage Rates<\/h2>\n<p>The average interest rate on the 30-year fixed-rate jumbo mortgage (mortgages above 2025&#8217;s conforming loan limit of $806,500 in most areas) inched down to 7.03%. Last week, the average rate was 7.12%.<\/p>\n<p>Borrowers with a 30-year fixed-rate jumbo mortgage with today&#8217;s interest rate of 7.03% will pay $667 per month in principal and interest per $100,000. That means you&#8217;d pay around $140,162 in total interest over the life of the loan.<\/p>\n<h2>How Much House Can I Afford?<\/h2>\n<p>Buying a house is a huge purchase and can put a big dent in your savings. Before you start looking, it&#8217;s important to <a>calculate how much house you can afford<\/a> and you&#8217;re willing to spend.<\/p>\n<p>Not only do you want to consider your income and debt, but you also want to factor in emergency savings and any long-term financial goals such as retirement or college.<\/p>\n<p>These are some basic financial factors that go into home affordability:<\/p>\n<ul>\n<li>Income<\/li>\n<li>Debt<\/li>\n<li>Debt-to-income ratio (DTI)<\/li>\n<li>Down payment<\/li>\n<li>Credit score<\/li>\n<\/ul>\n<h2>How Are Mortgage Rates Determined?<\/h2>\n<p>Mortgage interest rates are determined by several factors, including some that borrowers can&#8217;t control:<\/p>\n<ul>\n<li><strong>Federal Reserve.<\/strong> The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed&#8217;s rate decision.<\/li>\n<li><strong>Bond market.<\/strong> Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets &#8211; specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa.<\/li>\n<li><strong>Economic health.<\/strong> Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages.<\/li>\n<li><strong>Inflation.<\/strong> Banks and lenders may increase rates during inflationary periods to slow the rate of inflation. Additionally, inflation makes goods and services more expensive, reducing the dollar&#8217;s purchasing power.<\/li>\n<\/ul>\n<p>While the above factors set the base interest rate for new mortgages, there are several areas that borrowers can focus on to get a lower rate:<\/p>\n<ul>\n<li><strong>Credit score.<\/strong> Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage.<\/li>\n<li><strong>Debt-to-income (DTI) ratio.<\/strong> Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended.<\/li>\n<li><strong>Loan-to-value (LTV) ratio.<\/strong> Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down.<\/li>\n<li><strong>Loan term.<\/strong> Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term.<\/li>\n<li><strong>Residence type.<\/strong> Interest rates for a primary residence can be lower than a second home or an investment property. This is because the lender of your primary mortgage receives compensation first in the event of foreclosure.<\/li>\n<\/ul>\n<h2>What Is the Best Type of Mortgage Loan?<\/h2>\n<p>Many home buyers are eligible for several <a>mortgage loan types<\/a>. Each program can have its own advantages:<\/p>\n<ul>\n<li><strong>Conventional mortgage.<\/strong> A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.<\/li>\n<li><strong>FHA loan.<\/strong> An <a>FHA home loan<\/a> is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.<\/li>\n<li><strong>VA loan.<\/strong> Borrowers with a qualifying military background may prefer a <a>VA loan<\/a> for its flexibility. A down payment may not be required. While you pay a one-time <a>funding fee<\/a>, there are no ongoing mortgage insurance premiums or service fees.<\/li>\n<li><strong>USDA loan.<\/strong> Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.<\/li>\n<li><strong>Jumbo loan.<\/strong> Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency&#8217;s <a>conforming loan<\/a> limits. The limit in most municipalities is $806,500 in 2025.<\/li>\n<\/ul>\n<p><!-- fadv:ignore-wpautop -->\t<\/p>\n<h2 class=\"title\">\n\t\tFrequently Asked Questions (FAQs)\t<\/h2>\n<div class=\"main-faqs faq-2021 faq-v2\" data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Frequently Asked Questions (FAQs)&quot;,&quot;componentType&quot;:&quot;FAQ Component&quot;}\">\n<div class=\"faqs\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;What is a good mortgage rate?&quot;,&quot;clickType&quot;:&quot;Accordion&quot;,&quot;referenceText&quot;:&quot;&quot;}\">\n<div class=\"faq-question\">\n<div class=\"plus-minus\"><\/div>\n<h3 class=\"question-text\">What is a good mortgage rate?<\/h3>\n<\/p><\/div>\n<div class=\"faq-answer wysiwyg-content\">\n<p>A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. Several factors impact mortgage rates, including the repayment term, loan type and borrower&#8217;s credit score.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faqs\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;How can I get a lower mortgage interest rate?&quot;,&quot;clickType&quot;:&quot;Accordion&quot;,&quot;referenceText&quot;:&quot;&quot;}\">\n<div class=\"faq-question\">\n<div class=\"plus-minus\"><\/div>\n<h3 class=\"question-text\">How can I get a lower mortgage interest rate?<\/h3>\n<\/p><\/div>\n<div class=\"faq-answer wysiwyg-content\">\n<p>Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less.<\/p>\n<p>Furthermore, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"faqs\" data-ecom-misc-click=\"{&quot;clickText&quot;:&quot;How long can you lock in a mortgage rate?&quot;,&quot;clickType&quot;:&quot;Accordion&quot;,&quot;referenceText&quot;:&quot;&quot;}\">\n<div class=\"faq-question\">\n<div class=\"plus-minus\"><\/div>\n<h3 class=\"question-text\">How long can you lock in a mortgage rate?<\/h3>\n<\/p><\/div>\n<div class=\"faq-answer wysiwyg-content\">\n<p>Most rate locks last 30 to 60 days and your lender may not charge a fee for this initial period. However, extending the rate lock period up to 90 or 120 days is possible, depending on your lender, but additional costs may apply.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><!-- \/fadv:ignore-wpautop --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The current mortgage rate on a 30-year fixed mortgage fell by 0.20 percentage point in the last week to 6.6%, according to the Mortgage Research Center. Meanwhile, the APR on a 15-year fixed mortgage dropped 0.25 percentage point during the same period to 5.68%. For existing homeowners, compare your current mortgage rates with today&#8217;s refinance [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":259,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-260","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisor"],"_links":{"self":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts\/260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/comments?post=260"}],"version-history":[{"count":1,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts\/260\/revisions"}],"predecessor-version":[{"id":261,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/posts\/260\/revisions\/261"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/media\/259"}],"wp:attachment":[{"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/media?parent=260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/categories?post=260"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.pacific-hydro.com\/index.php\/wp-json\/wp\/v2\/tags?post=260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}