Many people think Fed rate hikes should lead to higher mortgage costs, but that’s not always so.
That’s because the Fed controls short-term interest rates, while mortgages reflect long-term interest rate expectations. The two don’t always move in sync.
A typical 30-year fixed mortgage is still available at 4% or under, says Steve Chaney, Loan Officer with U.S. Mortgage of Florida. A 15-year fixed mortgage is priced at around 3.375%.
If you’re in the market for a new mortgage or a refinancing, Steve says a credit score of 740 or over will earn you the best rates.
Also, clean up your credit as much as possible before applying for a loan.
Here’s one of Steve’s tips to help you land the best mortgage deal:
Keep credit card usage at or below 30% of the maximum credit line allowed on each card (that’s called the credit utilization ratio). That will help keep your credit score in pristine shape.