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Review current home equity loan rates for November 19, 2017 and get personalized mortgage quotes from top lenders
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Mortgage Rates by Loan Product
Mortgage Rate ReportSunday, November 19, 2017
No news is good news when it comes to mortgage rates as rates remained in a steady and low holding pattern for the second consecutive week after the Federal Reserve left interest rates unchanged in its November meeting. In its November statement, the Fed pointed to declining unemployment, expanding household spending and increasing business investment as offsets to lower than targeted inflation in deciding to keep the federal funds rate unchanged at 1.000% to 1.250%. The Fed's statement also highlighted the temporary impact of recent natural disasters on the economy as well as the implementation of its previously announced balance sheet shrinking program. In short, the Fed seems to be balancing a robust labor market with low inflation and although the Fed left interest rates unchanged in November, a rate increase in December seems highly probably.
Despite the possibility of a rate hike before the end of the year, mortgage rates have remained remarkably steady for most of November and this week was no exception. The interest rate for a 30 year fixed rate mortgage held at 3.750% while the interest rate for a 15 year mortgage remained at 3.000%. The interest rate on a 5/1 adjustable rate mortgage (ARM) was unchanged at 3.000%, remaining attractive to borrowers seeking shorter-term mortgage programs willing to take on the risk of an ARM. FHA mortgage rates and VA mortgage rates stayed put at 3.250%, with both programs remaining attractive to home buyers focused on low or no down payment loan options. Keeping with the no news is good news trend, non-owner occupied mortgage rates remained at 4.000% and jumbo mortgage rates were also unchanged at an attractive 3.750%.
The Fed did not change interest rates, its economic outlook or its messaging regarding future rate hikes in its November meeting which likely contributed to continued mortgage rate stability. Nearly two months of relatively steady mortgage rates have brought a sense of calm to the mortgage market and rates continue to remain near historical lows. Although the Fed did not change interest rates in November, it reinforced the expectation for a rate hike in December as well as multiple anticipated rate hikes in 2018. Prospective borrowers looking to buy a home or refinance their mortgage may be able to lock in a lower interest rate by acting sooner rather than later, before mortgage rates rise again, potentially at an accelerated pace.
Because mortgage rates fluctuate daily, we continue to actively monitor the mortgage market for updates. Borrowers should check the FREEandCLEAR mortgage rate tables regularly to review customized, updated mortgage rates for lenders in their area. Our rate tables are free to use and require no personal information.
Why Select a Home Equity Loan or HELOC
Only Access the Amount of Money You Need.
A home equity loan or HELOC enables you to access the specific amount of money you need as compared to a full refinance of your mortgage. A smaller loan amount means that your monthly payment and total interest expense over the life of the loan are lower with a home equity loan or HELOC.
Flexible Financing Option.
Most lenders impose relatively few limits on how borrowers use the proceeds from a home equity loan or HELOC. You can use the money from a home equity loan or HELOC for any number of reasons including to pay-off expensive credit card debt, for home improvements or even school tuition. Although most lenders want to understand how you plan on using your loan proceeds, a home equity loan or HELOC provides you significant flexibility on how you use the equity in your home.
Less Expensive and More Efficient than a Refinance.
A home equity loan or HELOC are less costly and time-consuming compared to alternate ways of tapping the equity in your home including a cash-out refinance. Transaction expenses and fees for a home equity loan or HELOC are typically less than the closing costs to refinance your mortgage because the loan amount is smaller. Additionally, the application and closing process for a home equity loan or HELOC are shorter than the time frame for a refinance.
Increased Borrowing Capacity.
Lenders typically apply a higher borrower debt-to-income ratio for a home equity loan or HELOC than for a mortgage, which potentially enables you to borrower more money. For example, depending on multiple factors, the maximum debt-to-income ratio for a mortgage is typically 45% to 50% while the maximum debt-to-income ratio for a home equity loan or HELOC is usually 55% or possibly higher under certain circumstances. Using a higher debt-to-income ratio enables you to borrow more money. With a home equity loan or HELOC, to determine what size loan you qualify for lenders primarily focus on the value of your home and the combined loan-to-value (CLTV) ratio of your first mortgage plus your home equity loan or HELOC.
Why Borrowers Compare Mortgage Rates on FREEandCLEAR
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More FREEandCLEAR Mortgage Resources
Understand how a home equity loan works including interest rate, qualification requirements and other key loan terms
Review our comprehensive overview of of how a HELOC works including loan-to-value ratio limits, types of HELOC and other guidelines
Review our detailed comparison of a home equity loan and a HELOC to determine the financing option that is right for you
Review an informative explanation of the trade-offs between a home equity loan and a mortgage refinance