Why High Mortgage Rates In Clearwater, FL, Do Not Affect Borrowers as Much As Those Borrowers In Other Countries

October 30, 2023

Why High Mortgage Rates In Clearwater, FL, Do Not Affect Borrowers as Much As Those Borrowers In Other Countries

By Published On: October 30th, 2023Categories: Clearwater FL, Mortgage Company, Mortgage Rates, Mortgage Refinance

From an all-time low of 2.65% in January 2021 to 7.79% this month, October 2023, it is undeniable that the US rate hikes shot up quite significantly, which is why some say the market trend is “crushing home buying affordability.” Despite these numbers, however, homeowners who have fixed-rate mortgages in the USare better off than those who live, for instance, in Australia or Great Britain.

30-year fixed mortgage – standard in the US

A 30-year fixed mortgage in the US is the standard. What does this mean? It means the majority of homeowners in the US choose the 30-year fixed mortgage. In fact, according to Washington-backed mortgage-guarantor Freddie Mac, it accounts for 90%. In other words, despite the US Central Bank rate hikes, the majority of homeowners are paying at around 3% (just like it was before the pandemic). That number, some mortgage experts say, is to rise slightly as more homeowners get loans at today’s new, higher mortgage rates in Clearwater, FL.

How can borrowers get better interest rates in today’s market?

Despite the fact that interest rates have significantly increased today from their all-time low in 2021, there are still opportunities to find great deals on mortgage rates in Clearwater, FL. Consider the following:

  • Improve credit score as it is one of the factors lenders consider for mortgage rates.
  • Have a stable employment record (two years of steady employment and earnings can help convince lenders of your financial capacity).
  • Work to put higher down payment (20% down payment can go a long way)
  • Work to have a healthier debt-to-income ratio (DTI divides your monthly debt payment to your gross monthly income – the lower your DTI ratio, the more favorable you are to lenders.)
  • Consider different loan types and terms (put them side by side and make comparison)
  • Compare offers from different prospective mortgage lenders.

If you still have more questions about mortgage rates in Clearwater, FL, don’t hesitate to contact us here at HomePlus Mortgage.

Call (727) 275-0104 for inquiries.