Mortgage Rates Hit Nearly Two-Year High: Here’s How to Lower Payments

by Shelby Scott

Like various industries and markets across the U.S, mortgage rates have hit a near two-year high following complications derived from the pandemic. Now, national rates increase, with a promise to surge even higher. With that, we have helpful tips on how you might be able to attain lower payments.

According to The U.S. Sun, the coronavirus pandemic initially saw mortgage interest rates at a historic low, creating a “hot” housing market. However, with economic growth, inflation, and a historically tight labor market, mortgage interest payments have surpassed a 20-month high.

Currently, Freddie Mac, a mortgage giant, states the 30-year fixed-rate average has risen to 3.22%.

For perspective, December 30th last year saw the high at 3.11%. A year ago Friday, the fixed-rate sat at a much lower 2.65%.

Now, current mortgage rates have officially reached their highest level since May of 2020, months after the pandemic began bowling over the U.S.

Now, the outlet has provided a brief list of methods for families to try in order to achieve more affordable payments.

How to Best Lower Your Mortgage Payments:

With continuing mortgage rate increases, the first decision to explore is whether it would be beneficial to refinance your current mortgage. On some occasions, this enables individuals to secure lower interest rates.

While the outlet did state there are several factors to consider in refinancing; it’s listed as the first option in achieving greater affordability. That said, homeowners should keep in mind that despite rising rates, older mortgages may still boast increased rates compared to those currently offered.

Additionally, possessing a greater credit score may enable Outsiders to re-determine the terms of the current mortgage.

Another potential solution suggests extending your mortgage term in order to decrease payments. However, this particular option does see a major downside.

While homeowners might see decreased payments after extending the term, it definitely causes a major increase in interest rates in the long term. So for those struggling with their current arrangement, definitely weigh all your options before making a final decision.

Property taxes add a whole other variable to overall mortgage payments. That said, appealing your property taxes may be a potentially good option for those currently worried about increasing mortgage payments. This is especially due to the fact that there are several available options for navigating this particular solution.

As per The U.S. Sun, the first option is to review your tax property card in search of errors. If property tax bills have seen significant increases, the individual may have room for an appeal. Another method states that if homeowners face financial setbacks, they may be eligible for property-tax relief.

Seek Government-Sponsored Aid

And finally, those facing major issues with mortgage increases should seek both state and federal help.

The news outlet specified looking into the homeowner assistance fund. This program provides money to residents who have fallen behind on payments. On top of mortgage relief, the funds also serve to provide assistance regarding utility bills and additional housing costs.

Another simple solution in searching for financial assistance is to contact your mortgage lender. The lender should have direct information specific to your loans and payments and should be able to help navigate better payment options.