A “good” mortgage rate depends on your loan type, credit score, and location. In September 2025, the national average for a 30-year fixed mortgage is around 7% APR. Generally, if you qualify for a rate below the national average, you’re doing well.

For example:

Excellent credit (760+): May qualify for rates 0.25%–0.5% lower than average.

Average credit (660–699): Typically close to or slightly above the national average.

First-time buyers with FHA loans: May see lower APRs due to government backing, even with smaller down payments.

💡 Tip: Always compare your rate to the average in your area — sometimes local lenders offer lower rates than national banks.

Yes — mortgage rates can change daily or even multiple times a day. This happens because lenders adjust rates based on:

Bond market fluctuations (especially the 10-year Treasury yield).

Federal Reserve announcements.

Economic data releases (like inflation reports or unemployment rates).

Housing demand in your region.

That’s why rate locks are important. Once you’re under contract, you can ask your lender to lock in your rate (usually 30–90 days) to protect yourself from sudden increases.

Yes — it’s possible to qualify for a mortgage with less-than-perfect credit. The loan options vary:

FHA loans: Available with credit scores as low as 580 (with 3.5% down) or 500–579 (with 10% down).

VA loans: No official minimum score, but most lenders prefer at least 580–620.

USDA loans: Typically require 640, though exceptions are possible.

Conventional loans: Require at least 620, but better rates are available with higher scores.

While you can buy a home with bad credit, keep in mind:

Your interest rate will likely be higher.

You may need a larger down payment.

Improving your credit score before applying could save you thousands over the life of the loan.

No — the 20% rule is a common myth. While putting 20% down helps you avoid private mortgage insurance (PMI), many programs require far less:

FHA loans: Just 3.5% down with a 580+ credit score.

VA loans: 0% down for eligible veterans and active-duty military.

USDA loans: 0% down for qualifying rural properties.

Conventional loans: As little as 3% down through programs like HomeReady or Home Possible.

💡 Tip: Even if you put down less than 20%, you can often remove PMI later once you’ve built up 20% equity through payments or appreciation.

Refinancing can be a powerful tool to save money, but it only makes sense in certain situations:

When rates drop: If mortgage rates fall by 0.5% to 1% or more below your current rate, refinancing could reduce your monthly payment and total interest cost.

When your credit improves: If your score has risen since you first took out your mortgage, you may now qualify for a lower rate.

When you want to shorten your term: Switching from a 30-year to a 15-year loan can save significant interest (though your monthly payment will rise).

When you want to tap equity: A cash-out refinance lets you borrow against your home’s value for major expenses.

Be cautious if:

You plan to sell soon (closing costs may outweigh savings).

You’re already near the end of your mortgage term.

💡 Use a refinance breakeven calculator to see how long it will take to recoup costs. If you’ll stay in the home longer than that, refinancing could be worth it.