Current mortgage rates have seen a slight decline, with the average 30-year fixed-rate mortgage now at 6.74%, down from 6.87% last week. For those considering shorter terms, the 15-year fixed-rate mortgage offers a lower average rate of 5.90%, although it comes with higher monthly payments. Refinancing options are also available at competitive rates. Understanding how much house you can afford involves several factors, including income, debt, and credit score. Mortgage rates are influenced by economic conditions, the Federal Reserve's decisions, and borrower-specific details. Buyers can improve their chances of securing favorable rates by maintaining a good credit score and a low debt-to-income ratio. Different mortgage types cater to various financial situations, from conventional loans requiring a 20% down payment to government-backed options like FHA, USDA, and VA loans, which offer more accessible terms for those with limited credit or finances.
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