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News & Insights | Mortgage News

![Mortgage News: How To Get Serious About Your House Hunt](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fba95824b648a4fb28fbc4a133da40aad)

## New to house hunting? Take these first steps to raise your chances of a win.

This year is shaping up to be one of the strongest in homebuying history, with an expected total of [nearly 7 million home sales](https://www.inman.com/2021/10/21/home-sales-should-hit-6-8m-in-2021-moxiworks/?utm_source=hotsheet&utm_term=&utm_medium=email&utm_campaign=Hot%20Sheet%2020211021 "external") around the country. October should tally up to 594,000 home sales, with another 556,000 coming in November. 

With listings flying off the market, it can be hard to figure out how to get ahead of the competition—especially if you’re new to homebuying. Here are some key first steps that can help you go from casual house hunter to serious homebuyer. 

#### Find out how much you can really afford 
Your budget for a mortgage may be higher than you think. To make your search easier, use the [Better Mortgage affordability](https://better.com/content/a-better-home-affordability-calculator/) calculator to see how much you could borrow based on your income, assets, and credit score. Then, when you see a home you love, run the numbers through their [free mortgage calculator](https://better.com/mortgage-calculator) for a clear picture of what you’d pay each month, including interest, insurance, and taxes. 

#### Get pre-approved for your personalized loan costs
Find out what you’d pay for a loan by [getting pre-approved](https://better.com/content/what-is-a-mortgage-pre-approval/). It only takes a few minutes to see your personalized rates and estimated payments from Better Mortgage, with zero obligations or impact to your credit score. Get the ball rolling [by seeing your mortgage rates](https://better.com/start).

#### Prepare for bidding wars with cash
There’s a ton of competition on the market, so be ready to face bidding wars. Making an offer in cash can help you stand out from the crowd—and win. The Better Cash Offer program lets you work with Better Mortgage and Better Real Estate to make an offer using Better’s cash, at no extra cost to you. Find out [more about the cash offer program](https://better.com/b/cash-offer) to see if it’s a good fit.  

These first few steps should help you get started in finding the right homes, loan options, and ways to stand out as a buyer. Read up on [what happens after getting pre-approved](https://better.com/content/what-happens-after-getting-pre-approved) to take it from there. 

![Four Homes Tiered in a Row Against a Blue Sky](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fe59971fd426b4ea4b58ea7de638e07a8)

## What rising inflation means for rates, and where they could go from here
Rates are on the rise, but they’re still low compared to pre-pandemic months. The 30-year fixed rate mortgage rose [0.04% last week to an average of 3.09%](http://www.freddiemac.com/pmms/ "external"). For context, the rate hovered closer to 3.50% at the start of last year. 

There are a number of [factors that affect mortgage rates](https://better.com/content/what-affects-mortgage-rates/), but a large driver for today’s rise is inflation. Inflation refers to an increase in the prices of goods and services around the country, and how it relates to people’s ability to purchase them. If the goods and services you spend money on each year rose by 2% on average, it would mean 2% inflation. In other words, your income last year would buy 2% less at today’s prices. That’s a healthy rate of inflation, [according to The Federal Reserve](https://www.federalreserve.gov/faqs/5D58E72F066A4DBDA80BBA659C55F774.htm#:~:text=The%20Federal%20Reserve%20has%20not,percent%20or%20a%20bit%20below"external").

Today, [inflation is on the rise and likely to stay that way](https://www.reuters.com/world/us/yellen-says-us-has-options-raise-revenue-pay-build-back-better-bill-2021-10-24/ "external") until the middle of next year. That can drive mortgage rates up as investors on the market expect lenders to increase their rates to align with their return on a loan. Between now and the end of the year, Better Mortgage analysts expect that rates to keep climbing, but likely [won’t pass 3.25%](https://better.com/content/rates-remain-low-but-could-rise-from-here). 

Trying to time the market could cost you more in the long run. Get the ball rolling on your home loan now by [seeing your mortgage rates](https://better.com/start).

#### Considering a home loan?
Get your custom rates in minutes with [Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

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Ready to buy a home? Learn how to get serious about your house hunt with practical tips on budgeting, pre-approval, and navigating a competitive market.

How To Get Serious About Your House Hunt

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How to get serious about your house hunt

![Mortgage News: Conforming Loan Limits Are Going Up](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F8be0dec73d4d4928878bbe9c8c2da894)

<br>

Here’s a look at the latest developments in the homebuying market this week. 

<h2>The ceiling on conforming loans is going up, and it can help you save on a new home</h2>

![Chart Illustrating Conforming Loan Limits In The US, From 2000 to 2022](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fa2f4d4c9b9714777808a1da7c703426f)
<p class="legal">Source: <a href="https://www.inman.com/2021/10/05/fannie-freddie-loan-limits-set-for-record-50-year-leap-in-2022/">Federal Housing Finance Agency</a> via Inman</p>

<br>

Fannie Mae and Freddie Mac are expected to [raise the limit on conforming loans](https://www.inman.com/2021/10/05/fannie-freddie-loan-limits-set-for-record-50-year-leap-in-2022/ "raise the limit on conforming loans") next month. This should make it easier for homeowners to borrow higher amounts when they refinance, without potentially spending more on the price of a jumbo loan. 

Conforming loan limits are the maximum amount you can borrow for a conforming loan in each county. They’re decided by the [Federal Housing Finance Agency (FHFA)](https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limit-Map.aspx "Federal Housing Finance Agency (FHFA)") in order to keep the market stable, and determined according to national average home prices. In August, the national median listing price was [$380,000](https://www.realtor.com/research/august-2021-data "$380,000"), and the [U.S. Home Price Index](https://www.corelogic.com/intelligence/u-s-home-price-insights/ "U.S. Home Price Index") rose by its highest gain in 45 years. 

If you want to borrow more than today’s most common conforming loan limit of [$548,250](https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limit-Map.aspx "$548,250"), you would likely need a jumbo loan. Those can come with tougher eligibility requirements, higher down payment minimums, and often, higher interest rates. The new conforming loan limit is expected to rise by at least $75,000, to $625,000—its highest increase since 1970. That means more opportunity for homeowners to save on a conforming loan and its options. 

The change would officially take effect after January 1, 2022, but Better Mortgage plans to implement the new limit once it’s announced. Until then, learn more about the [differences between a conforming loan and a jumbo loan](https://better.com/content/jumbo-vs-conforming-loans/ "differences between a conforming loan and a jumbo loan"). 

<h2>Bidding wars are slowing down but inventory remains low</h2>

Home prices [continue to rise](https://www.corelogic.com/intelligence/u-s-home-price-insights/ "continue to rise") and inventory remains historically low, but there are some bright spots on the market that show competition may be slowing down. 

Bidding wars have dropped in frequency, down to a rate of [59% of homes rather than 74%](https://www.redfin.com/news/real-estate-bidding-wars-august-2021/ "59% of homes rather than 74%") this past spring. On top of that, a smaller share of homes are selling over asking price, and the number of homes selling within two weeks has [dropped nearly 10%](https://www.redfin.com/news/real-estate-bidding-wars-august-2021/ "dropped nearly 10%") from its peak in March. Plus, more listings are popping up from [owners coming out of forbearance relief plans](https://better.com/content/prepare-for-a-wave-of-new-listings-this-month "owners coming out of forbearance relief plans"). 

While these are positive signs, demand continues to [outpace supply by as much as five million homes](https://www.cnbc.com/2021/09/14/america-is-short-more-than-5-million-homes-study-says.html "outpace supply by as much as five million homes"). Standing out as a buyer is key to landing the home you want, and making an all-cash offer can help. By working with Better Real Estate and Better Mortgage, you may qualify for [a Better Cash Offer](https://better.com/b/cash-offer "a Better Cash Offer"). That means making a bid using Better’s cash at no extra cost. Find out more about the [Better Cash Offer program](https://better.com/content/better-cash-offer-faq "Better Cash Offer program") and whether it’s the right move for you. 

<h2>Considering a home loan?</h2>

Get your custom rates in minutes [with Better Mortgage](https://better.com/ "Better Mortgage Start"). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

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To help buyers keep up with record high home prices, the FHFA is raising the limit on conforming loans—and it could help you save on a home. 

Conforming Loan Limits Are Going Up

Blog post image for Conforming loan limits are going up

Conforming loan limits are going up

![Mortgage News: Why Rising Home Values Could Help You Save](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F560c388ad2684deba47f7761f6347b92)

<br>

Here’s a look at the latest developments in the refinancing market this week.

## Your home may have gone up in value—and it could help you pay less on your mortgage

![Line Graph Showing U.S. Home Value Growth Year-Over-Year](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F883beaaa87264b8ead8d3d417592a220)

<p class="legal">Source: <a href="https://www.zillow.com/research/august-2021-market-report-30110/">Zillow Home Value Index</a></p>
<br>

Market values of homes around the country have risen by a record gain of [17.7% in the last year](https://www.zillow.com/research/august-2021-market-report-30110/ "17.7% in the last year"), and the typical U.S. home was worth [over $5000](https://www.zillow.com/research/august-2021-market-report-30110/ "over $5000") more in August than it was in July. That puts today’s homeowners in a good position to drop their private mortgage insurance (PMI) when they refinance. 

Private mortgage insurance (PMI) is added to your monthly mortgage payment as a buffer for some of the financial risk your lender takes on. If you put less than 20% down on your loan, it gets automatically applied. For conventional loans, PMI gets removed once you’ve gained 20% of your home equity. This happens as you pay off your loan, or when your home goes up in value. 

If you’ve been paying for PMI each month, it’s probably a good time to refinance and see how much your home is worth today. Your appraisal gives you an updated loan-to-value ratio (LTV), which can lower the price of the refinance, qualify you for more favorable terms, and drop PMI from your monthly payment. 

Get the ball rolling on a refinance to [see how much you could save today](http://better.com/start "see how much you could save today"). And for more details, read up on [how private mortgage insurance works](https://better.com/content/what-is-pmi-or-private-mortgage-insurance/ "how private mortgage insurance works"). 

## Mortgage rates jumped—and they’re expected to keep climbing.

After weeks of [hovering near 2020 lows](https://better.com/content/rates-remain-low-but-could-rise-from-here "hovering near 2020 lows"), mortgage rates are back on the rise. The 30-year fixed rate average rose 0.13% last week to [3.01%](http://www.freddiemac.com/pmms/)—its highest level [since July](https://www.cnbc.com/2021/09/29/mortgage-demand-falls-as-rates-rise-to-highest-level-since-july.html). Better Mortgage analysts expect rates to continue inching upward, though they’re not likely to rise beyond 3.25%. The market drove rates up in response to The Federal Reserve’s signals that they’ll [soon be tapering the measures](https://www.marketwatch.com/story/mortgage-rates-jump-above-3-creating-pressure-for-home-buyers-11633011496 "soon be tapering the measures") that have helped keep mortgage rates low since the pandemic began. 

Just a fraction of a percent can make a difference in your monthly payments, so it may be a good idea to move quickly on a new loan before rates can jump further. You could qualify for programs like RefiNow and RefiPossible, which guarantee homeowners drop their monthly payments by at least $50, and are estimated to save $3000 a year. [Check out your rates with Better Mortgage](https://better.com/start "Check out your rates with Better Mortgage") to see where you stand, and learn more about [RefiNow](https://better.com/content/you-could-reduce-your-monthly-costs-with-refinow "RefiNow") and [RefiPossible](https://better.com/content/you-could-save-on-monthly-costs-with-refipossible-tm "RefiPossible").  

![Image of Person in Minimal Setting with Laptop Smiling](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F8d38ea7761f74ebfa5e7ffaffd6d0cb6)

#### Considering a home loan?

Get your custom rates in minutes [with Better Mortgage](https://better.com/ "Better Mortgage"). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

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With property values rising, today’s homeowners are in a good position to refinance with new terms that remove private mortgage insurance. 

Why Rising Home Values Could Help You Save

Blog post image for Why rising home values could help you save

Why rising home values could help you save

![Mortgage News: Prepare For A Wave Of New Listings This Month](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F7c784f61bb6e4c7c9cab0d8863a3734c)

<br>

Here’s a look at the latest developments in the homebuying market this week.

## 200k more homes are hitting the market this fall 

![Graph Illustrating Month-over-month Change in Homes for Sale](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F434cf1fa0a5a46c2b7f55c076d949774)

<br>

Supply on the market has gotten a much-needed boost with inventory [rising 30% over the last three months](https://fortune.com/2021/09/07/home-buyers-housing-market-inventory/ "external"). Now, over [200,000 more homes](https://www.zillow.com/research/forbearance-exits-inventory-2021-29931/ "external") are expected to go up for sale this fall from homeowners who are exiting forbearance plans. 

September marks eighteen months since the government [introduced pandemic-era relief](https://www.hud.gov/sites/dfiles/SFH/documents/IACOVID19FBFactSheetConsumer.pdf "external") which allowed homeowners to pause their monthly mortgage payments through forbearance. When the period ends, they’re expected to resume payments along with what they missed, plus interest. Over [800,000 homeowners](https://www.blackknightinc.com/black-knights-june-2021-mortgage-monitor/ "external") are projected to exit forbearance in September, and [a quarter of them are expected](https://www.zillow.com/research/forbearance-exits-inventory-2021-29931/ "external") to take advantage of today’s rising prices by listing their home. 

The wave of new listings will provide shoppers some new selection, but isn’t enough to fill the supply gap of [over 5 million homes](https://better.com/content/rates-are-still-low-on-a-new-home). Today’s competition is so hot that nearly [a quarter of all buyers](https://www.cnbc.com/2021/08/23/home-sales-rose-in-july-as-demand-outpaced-slightly-stronger-supply.html "external") are making their winning offers in cash. If you want to stand out as a cash buyer at no extra cost, work with Better Mortgage and Better Real Estate to qualify for [the Better Cash Offer program](https://better.com/content/all-cash-offers-how-to-make-a-winning-bid-on-a-house). 

## Student loan debt is growing. Here’s how to get a mortgage with them. 

Student loan debt in the U.S. has now [surpassed $1.7 trillion](https://www.cnbc.com/2021/09/17/student-debt-is-a-main-obstacle-for-millennials-wanting-to-buy-a-house.html "external"), and roughly a third of those borrowers are in delinquency or default. If you’ve thought your student debt is keeping you from homeownership, you’re not alone. [A recent survey reported](https://cdn.nar.realtor/sites/default/files/documents/2021-the-impact-of-student-loan-debt-report-executive-summary-09-14-2021.pdf "external") that half of non-homeowners say student loan debt is delaying them from buying a home—but it doesn’t have to. 

Data shows the [relationship between student loans and homeownership](https://www.zillow.com/research/student-debt-homeownership-10563/ "external") is seemingly nonexistent. If you’re balancing homebuying with student debt, there are just two areas that may require some extra attention: your debt-to-income ratio (DTI) and your savings for a down payment. 

Reducing your DTI can help boost your odds of getting approved for a mortgage. That could mean refinancing your student loans, or paying off a credit card or two. As for the down payment, Better Mortgage offers loan options starting with [as little as 3% down](https://better.com/content/5-percent-down-payment/), along with the chance to [roll in your closing costs](https://better.com/content/no-cost-mortgage/) and pay less upfront in exchange for a higher rate. If you want to get a sense of all your options, read our guide to [getting a mortgage with student loans](https://better.com/content/getting-a-mortgage-with-student-loans/). 

![Corner Perspective of Brown-colored House With Multiple Windows on Sunny Day](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F5dc7e26f2e324e3d81016aeccaca8619)

<br>

#### Considering a home loan?

Get your custom rates in minutes [with Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

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Buyers should be seeing more options on the market as more than 400,000 homeowners reach the end of forbearance plans this month.

Prepare For A Wave Of New Listings This Month

Blog post image for Prepare for a wave of new listings this month

Prepare for a wave of new listings this month

![Mortgage News: Rates Remain Low, But Could Rise From Here](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fcdeb80b34e1a4aab8d67dc086a8ceb83)
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Here’s a look at the latest developments in the refinance market this week.

## Rates are close to September 2020 lows—but they could rise from here

![Double Line Graph: 2020 vs 2021 Freddie Mac PMMS Rates](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F4c3bebbeacb64a72b8f1e3419eef02ee)
<p class="legal">Source: <a href="http://www.freddiemac.com/pmms/">Freddie Mac PMMS</a></p>

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The market has kept rates steadily low over the last couple of months, with the 30-year fixed rate mortgage moving only 0.01% last week [to 2.88%](http://www.freddiemac.com/pmms/ "external"). A [healthy economy usually means higher rates](https://better.com/content/what-affects-mortgage-rates/), but a new wave of COVID cases and lower-than-expected employment have stalled the country’s growth. 

Mortgage rates are in roughly the same place they were at this time in September 2020, when the 30-year fixed rate was just 0.02% away, at [2.86%](http://www.freddiemac.com/pmms/ "external"). Instead of dropping further, they’re [expected to rise this year](https://finance.yahoo.com/news/housing-market-forecast-rest-2021-210003957.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANu9mEZdj2nVO6bjn_kojz40vVPQO_M553l3kHJM-nY2J_pskFbiJZQR2K4LAkCWwgHQLqE-nI2FchRUMYcQaY52obLv4XMGjnQNQ3QPC8Um9wNjmPKqZbasrsgcArS24lxtB_bO4Cec2zIsr1Jw8wSWVWcXhM2SzdLoiWVWwWwd "external"). Better Mortgage analysts expect rates to start ticking up by mid-autumn, but remain below 3.25% in 2021. 

If you’re buying a home, it may be a good idea to lock in a rate quickly before they can rise. Get started by seeing [today’s rate table](https://better.com/start) to find out what you’d pay each month. If you’re not sure how to choose the best option for you, read [our guide to comparing mortgage rates](https://better.com/content/what-to-look-for-when-comparing-mortgage-rates/). 

## With the market short over 5 million homes, price gains reach another record high

Prices continue to climb as the home supply gap grows larger. Home price gains hit a record high of [18% year-over-year in July](https://www.corelogic.com/intelligence/u-s-home-price-insights/ "external"), with the national median asking price at [$385,000](https://www.realtor.com/research/weekly-housing-trends-view-data-week-sept-4-2021/ "external"). Low inventory is driving the price hike, since there are now more households in the country than there are homes. The U.S. Census found that [12.3 million American households](https://www.cnbc.com/2021/09/14/america-is-short-more-than-5-million-homes-study-says.html "external") were formed from January 2012 to June 2021, but just 7 million new single-family homes were built during that time.

Higher prices mean higher costs, including real estate commissions. A traditional real estate agent will take 5-6% of the home’s sale price, which can amount to $15,000 on a $250,000 home sale price. Better Real Estate Agents are salaried and don’t take a commission, which saves both the buyer and seller money. Learn more about [agent commissions and why you shouldn’t pay them](https://better.com/content/why-you-shouldnt-pay-real-estate-commission). 

## How Melany Anderson saved on a family home with Better Mortgage

![Photograph of Melany Anderson and 6-year-old Daughter Sourced from New York Times Article Published September 18, 2020](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Feadf23248359418aa50118a5aa9cf2bf)
<p class="legal">Source: <a href="https://www.nytimes.com/2020/09/18/business/digital-mortgages.html">NYTimes</a></p>

The digital tools and services at Better Mortgage help save customers money by cutting out a number of unnecessary loan fees. That came in handy when Melany Anderson, a pharmaceutical consultant from West Orange, New Jersey, set out to buy a home. 

After going through a rough divorce that put a strain on both her bank account and credit score, Melany was pushed to buy a home when her 6-year-old daughter asked why she didn’t have her own room where they were living. That put her on the path to becoming a homeowner—she slowly rebuilt her credit, saved up her income, and took money from her 401K to use on a down payment. 

Melany worked with Better Mortgage to buy a two-bedroom home with a modern kitchen, deck, and backyard in November 2019. She never had to step foot in a bank, and in the end, only paid $4,000 in fees—roughly [half the national average](https://www.urban.org/sites/default/files/publication/100533/fintech_innovation_in_the_home_purchase_and_financing_market_0.pdf "external"). Now she’s proud to be financially stable for her daughter, and Better Mortgage is proud to have helped her get there. 

There are a number of fees that come with a new home, but choosing the right lender and loan options can reduce them. Read up on which [mortgage costs you should (and shouldn’t) pay](https://better.com/content/cost-and-lender-fees-in-mortgage-process/). 

#### Considering a home loan?

Get your custom rates in minutes [with Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

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 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
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Rates are close to the lows of September 2020, giving today’s homebuyers a chance to save on their mortgage before they’re expected to rise. 

Rates Are Still Low On A New Home

Blog post image for Rates are still low on a new home

Rates are still low on a new home

![Mortgage News: A Starter Home Could Be Cheaper Than Rent](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F6f82a2be78e14479842081c0d037d8e8)

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Here’s a look at the latest developments in the refinance market this week.

## It’s cheaper to buy than rent in nearly half of the country’s biggest cities

While rental prices have risen over the last few months, mortgage rates have remained low. Now, today’s homebuyers can get a starter home for less than the cost of renting in [24 of the 50 largest U.S. cities](https://sports.yahoo.com/buying-starter-home-cheaper-rent-070009238.html "external"). 

A starter home is defined as a studio, one-bedroom, or two-bedroom dwelling, and their prices can vary. 

In July, the national average rent increased [10% year-over-year](https://sports.yahoo.com/buying-starter-home-cheaper-rent-070009238.html), while the 30-year fixed rate mortgage continued to sit [close to historic lows below 3%](http://www.freddiemac.com/pmms/ "external"). For example, in Birmingham, the average monthly cost for a home was $728, which was [33% less than its median monthly rent of $1,089](https://magazine.realtor/daily-news/2021/08/27/starter-homes-still-cheaper-than-renting-in-many-areas "external"). That saves homeowners $361 a month and over $4,000 a year.
If you’re open to relocating, it may be worth taking a look at our [roundup of the most affordable cities to buy in](https://better.com/content/most-affordable-cities-in-the-us/). They each have a lower cost of living that aligns with home prices and household incomes in the area. 

Buying a home can do more than just save you money. You could gain home equity, which you can access with [cash out with a refinance](https://better.com/content/cash-out-refinancing-gives-you-options/). Figure out if it’s time to make the move with [help from these tips on renting vs. buying](https://better.com/content/should-i-rent-or-buy/). 

## Extreme weather is getting more frequent. Do you have the insurance you need? 

As the [impact of climate change](https://www.washingtonpost.com/climate-environment/2021/07/03/climate-change-heat-dome-death/ "external") continues to worsen around the country, storms and major weather events are becoming more frequent. If you want to protect your home and its financial value, it’s important to have insurance that fits your needs. 

[Homeowners insurance](https://better.com/content/why-do-i-need-homeowners-insurance) covers losses and damages that occur to or on your property. Your policy can provide the funds to make repairs or replacements and protect you from certain liabilities. While it may seem like an extraneous cost when things are going well, its value is undeniable when they’re not. 

Most people pay around [$90 a month](https://www.lemonade.com/blog/homeowners-insurance-cost/ "external") for homeowners insurance, though it depends where you live and what you need. Many types of damage like wind, hail, and lightning, are covered under a standard homeowners insurance policy. But some events fall under a separate deductible, like flooding. Just an inch of water can bring up to [$25,000 in damage](https://www.cnbc.com/2021/08/31/how-homeowners-can-be-financially-prepared-ahead-of-storms-like-ida.html "external"), so it may be worth getting an additional policy to make sure you’re protected. 

Read up on [all things insurance](https://better.com/content/all-things-insurance) to figure out what you need for your home, and how to get it. If you’re looking for a fast insurance experience that’s entirely online, head to [Better Cover](https://better.com/hoi) to see how they can help. 

## Why Tess Silwa chose to buy her first home with Better Mortgage

Better Mortgage is proud to be a digital-first mortgage lender, because it helps them communicate quickly and efficiently with everyone they work with. That’s part of what drew Austinite Tess Silwa to the company when she decided it was time to buy her first home. 

Tess began house hunting with her partner in 2019. When browsing for lenders online, she was instantly impressed by Better Mortgage’s competitive rates. Tess says she decided on Better because the team was responsive and helpful, and didn’t make her feel like she had to come in knowing the loan process already, as so many other lenders had. If you’re new to homeownership and not sure what’s next, get a lay of the land with the [8 steps to buying a home.](https://better.com/content/steps-to-buying-a-house) 

## Considering a home loan?

Get your custom rates in minutes with [Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

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Rent is climbing in major cities while mortgage rates are still low, creating more opportunities for buyers to save money on a starter home.

A Starter Home Could Be Cheaper Than Rent

Blog post image for A starter home could be cheaper than rent

A starter home could be cheaper than rent

![Mortgage News: Over 1M Homeowners Can Save With RefiPossible](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F02441af417424ba98264ffde5498f817)

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## As rates climb, a new program could help more homeowners refinance

Mortgage rates may be on the rise, but they’re still close to historic lows. The popular [30-year fixed rate jumped to 2.87%](http://www.freddiemac.com/pmms/ "external") two weeks ago, and now remains in roughly the same place at [2.86%](http://www.freddiemac.com/pmms/ "external"). That’s not far off from its all-time low of [2.65%](https://www.washingtonpost.com/business/2021/01/07/fixed-mortgage-rates-sink-lowest-levels-history-could-be-headed-higher/ "external"), putting many homeowners in a good position to save on a refinance. 

If you’re interested in resetting your home loan, a new program could help you lock in a lower rate. [RefiPossible from Freddie Mac](https://better.com/content/you-could-save-on-monthly-costs-with-refipossible-tm) will be available to over a million homeowners starting August 30th. It’s a loan option designed for those who may not qualify for a conventional refinance, or missed the 2020 refinance wave. If you’re eligible, you’re guaranteed to cut down your monthly payments by at least $50, and estimated to save up to $250 per month, or $3,000 a year. Better Mortgage is proud to be one of the first lenders offering RefiPossible loans on its August 30th launch date. 

If you’re waiting to see rates drop further before you refinance, it could [cost you more in the long run](https://www.yahoo.com/now/mortgage-rates-edge-higher-homeowners-220500367.html "external"). Even as new Covid-19 variants create potential uncertainty in the economy, mortgage rates aren’t expected to reach the record lows of 2020 again. In fact, they should be [inching further up](https://time.com/nextadvisor/mortgages/mortgage-predictions-2021/ "external") by the end of the year. With RefiPossible, you would start saving now. [Check out today’s rates online](https://better.com/start) to see how the numbers on your mortgage measure up, and [learn more about RefiPossible](https://better.com/content/you-could-save-on-monthly-costs-with-refipossible-tm) to see if it’s the right move for you.  

## How homebuyer Marcela Roza scored a Better Home Run

Better isn’t just a mortgage company—it’s a one-stop shop dedicated to making homeownership more accessible. While Better Mortgage helps you buy and refinance your home, Better Cover and Better Settlement Services are there to help you with homeowners and title insurance, respectively. When we work with you on all three, we call it a Better Home Run. 

Last August, New Jersey resident Marcela Roza became a home-run client when she found Better online. “I work in advertising and talk to people all day. When it comes to my personal needs, I want the process to be online, easy, and convenient,” she says. 

Marcela bought a home with Better Mortgage, and insured it through Better Cover and Better Settlement Services. This saved her time and energy that she would have spent shopping around elsewhere, and helped her close on her first home quickly—even in the middle of a pandemic. 

If you’re on the hunt for insurance, [Better Cover](https://better.com/hoi) and [Better Settlement Services](https://better.com/title) can help you make it happen quickly and efficiently. Or, study up to figure out what you need with [our guide to homeowners insurance](https://better.com/content/why-do-i-need-homeowners-insurance) and our breakdown of [why title insurance matters](https://better.com/content/title-services/). 

#### Considering a home loan?

Get your custom rates in minutes [with Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

 <div style="text-align: center">  
 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
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RefiPossible is a loan option designed for those who may not qualify for a conventional refinance, or missed the 2020 refinance wave.

Over 1M Homeowners Can Save With RefiPossible™

Blog post image for Over 1M homeowners can save with RefiPossible™

Over 1M homeowners can save with RefiPossible™

![Mortgage News: A Fannie Mae Change Could Help Homeowners Save](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F9c37f0d143b74b04b9829e84e13e5eb9)

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## Here’s how your credit score could go further on a refinance

On September 18th, [Fannie Mae is rolling back restrictions](https://guide.freddiemac.com/app/guide/bulletin/2021-28?utm_source=eloqua&utm_medium=email&utm_campaign=2021-08-11_POLICY_Guide-Policy&elqTrackId=747C89626F11F8DD6608D507513F79CC&elq=3c2cd261068e4b0598a1b73e455c6b5b&elqaid=10401&elqat=1&elqCampaignId=9764) that impact how lenders evaluate credit scores. Instead of considering only the lowest of two FICO scores between a primary and co-borrower, lenders will now be able to combine them for an average score. That means you’ll be represented by either the same score or higher when applying to a Fannie Mae-backed lender like Better Mortgage. 

Your credit score is a large part of how lenders evaluate your ability to pay back a loan. The higher your score, the lower the rate you likely qualify for—which means more savings on a refinance. It also affects the price of your mortgage insurance, which is required if you make a down payment less than 20%. Get a sense of [how your credit score affects your mortgage](https://better.com/content/how-your-credit-score-affects-your-mortgage/), and how to improve it before applying.

This change is coming just in time as mortgage rates begin to tick upward. America’s most popular home loan, the 30-year fixed rate mortgage, [reached 2.87% last week](http://www.freddiemac.com/pmms/). That’s not far from its all-time low of [2.65%](https://www.washingtonpost.com/business/2021/01/07/fixed-mortgage-rates-sink-lowest-levels-history-could-be-headed-higher/), but it is a 0.10% jump from the week before. 

The market drove rates up in response to the country’s latest jobs report. Employment and wages are increasing, and a [healthy economy usually means higher mortgage rates](https://better.com/content/what-affects-mortgage-rates/). It may help to move quickly on your refinance before they can rise further, so [see what today’s rates mean for your budget](https://better.com/start). 

## Considering a home loan?
Get your custom rates in minutes with [Better Mortgage](https://better.com). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

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Lenders will evaluate credit scores differently starting September 18th, and homeowners may be in a position to save even more on their next refinance.

A Fannie Mae Change Could Help Homeowners Save

Blog post image for A Fannie Mae change could help homeowners save

A Fannie Mae change could help homeowners save

![Mortgage News: What The End Of The Foreclosure Ban Means For Homeowners](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F16fbc9cba35548fd899ee2a091e13f76)

<br>

Here’s a look at the latest developments in the mortgage market this week. 

<ul>
<li><strong>The foreclosure ban just ended. Here’s what it means for homeowners.</strong></li>
<li><strong>Bidding wars are cooling down, but prices are still hot</strong></li>
<li><strong>Mortgage rates linger near historic lows</strong></li>
<li><strong>FHA or Conventional—which loan is best for you?</strong></li>
</ul>

## The foreclosure ban just ended. Here’s what it means for homeowners.

On July 31st, the government ended its [federal moratorium on foreclosures](https://www.inman.com/2021/07/31/eviction-and-foreclosure-bans-end/ "external"), putting more pressure on homeowners in forbearance to catch up on missed payments. That number of owners has dropped by half since the pandemic began, now accounting for 2.1 million households. If you’re currently in a forbearance plan, or behind on payments, there are a few routes you can take to get on your feet and remain in good standing with your lender. 

Mortgage forbearance is a way to put your loan payments on pause with the approval of a lender or bank. When the period ends, homeowners are required to resume their monthly payments and make up the ones they missed, with interest. 

With [an FHA loan](https://better.com/content/what-is-an-fha-loan/) or federally funded mortgage, homeowners can extend forbearance plans for up to 18 months. If your mortgage falls in that category and you haven’t hit the limit, you could apply for a 3-month extension for more time. 

Selling your home could also provide the influx of cash required to start fresh. Over [a million homeowners were rescued](https://www.nationalmortgagenews.com/articles/u-s-housing-boom-rescues-more-than-1-million-underwater-homes "external") from debt in the last year and a half just by selling their home. If you’re ready to make the move, you may be able to list with [Better Real Estate](https://better.com/realestate) and pay less than you would with a traditional brokerage. 

With [today’s 30-year fixed rate near a historic low](http://www.freddiemac.com/pmms/ "external") and [millions in a good position to save](https://time.com/nextadvisor/mortgages/mortgage-news/do-you-qualify-to-save-on-refinance-loan/ "external"), refinancing may be the best option. A new home loan gives you the chance to reset your terms entirely, or lock in a lower interest rate and monthly payment. You could even tap into your home equity with a [cash-out refinance](https://better.com/content/cash-out-refinancing-gives-you-options/). Over the last year, home equity around the country rose by a record [$33,400 per homeowner](https://www.cnbc.com/2021/06/10/homeowners-got-2-trillion-richer-during-first-three-months-of-2021.html "external") on average. See [how to calculate your home equity](https://better.com/content/home-equity-vs-refinance/), and read through [our guide to refinancing](https://better.com/content/is-it-a-good-time-to-refinance) to learn if it’s the right move for you. 

No matter which direction you take, it starts with [seeing your rates](https://better.com/start). That way, you know where you stand as a homeowner—and what you could be saving. 

## Bidding wars are cooling down, but prices are still hot

With [more inventory](https://better.com/content/how-to-get-an-offer-accepted-in-todays-market) hitting the market, [bidding wars are on the decline](https://www.inman.com/2021/08/03/bidding-wars-are-cooling-off-how-to-prepare-for-a-shift-2/ "external") for the second month in a row, this time by [7% from May to June](https://www.redfin.com/news/real-estate-bidding-wars-june-2021/ "external"). That’s good news for shoppers who are dealing with tough competition, but with prices still at record highs, it may not be felt in every corner of the market. 

Existing home prices have jumped 23% over the last year, reaching a record median price of [$363,000](https://www.wsj.com/articles/median-existing-home-price-hit-new-high-in-june-11626963073#:~:text=June%20sales%20rose%2022.9%25%20from,price%20increases%20amid%20limited%20inventory. "external"). Even without a bidding war, making sure your offer stands out to sellers is important.. 

Boost your odds of an accepted offer with the [Better Appraisal Guarantee](https://welcome.better.com/better-appraisal-guarantee/).* It locks in your loan terms regardless of a home’s appraisal, so you don’t take any risk by waiving [the appraisal contingency](https://better.com/content/appraisal-contingency/). Sellers are 50%** more likely to pick a guarantee-backed offer, and all it takes to get started is talking to a Better Real Estate agent. [Find one in your area here](https://better.com/with/find-an-agent?leadSource=betterappraisalguarantee). 

## Mortgage rates linger near historic lows

The market drove mortgage rates down last week, due to a heightened sense of uncertainty around the pandemic and new variants. The [30-year fixed rate hit 2.77%](http://www.freddiemac.com/pmms/ "external") which is a 0.11% drop from where it was at this time last year. 

Rates this low spell good news for homebuyers and homeowners alike. And given how much closing costs can also impact the price of a loan, a no-cost mortgage could be a great way to save even more. This loan type rolls your closing costs into the total loan amount, so you don’t have to pay as much upfront. [Find out if a no-cost mortgage](https://better.com/content/no-cost-mortgage) is the right move for you. 

## FHA or Conventional—which loan is best for you?

Choosing a loan is about more than just what you qualify for. It depends on your priorities as a borrower, the kinds of risks you’re comfortable taking, and what you have planned for your homeownership timeline. FHA and Conventional loans are both popular, but come with different eligibility requirements, insurance costs, and availability. Find out which one is a better fit for you by following our [step-by-step guide to choosing between an FHA or Conventional loan type](https://better.com/content/fha-vs-conventional-loans). 

## Considering a home loan?

Get your custom rates in minutes with [Better Mortgage](https://better.com/). Their team is here to keep you informed and on track from pre-approval to closing. 

<br>

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 <a class="bet-Button bet-Button--xl bet-Button--primary" href="https://better.com/start">See your rates</a>  
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<p class="legal"><a href="https://welcome.better.com/better-appraisal-guarantee/">*See Better Appraisal Guarantee terms and conditions</a> 
  <br> **Results based on a survey of 104 real estate agents in competitive markets. Of those surveyed, more than ~60% responded that waiving the appraisal contingency could increase the likelihood of having a competitive offer accepted by 50% or more. Results may vary and are not intended to represent or guarantee that anyone will achieve the same or similar results.</p>

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The foreclosure ban has ended. Find out what it means for millions of homeowners, the choices you face now, and how to safeguard your home today.

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