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Mortgage rates continue to increase

Delaware homeowners may soon be paying more on long-term mortgage rates. Interest rates are rising because the Federal Reserve is taking action to keep inflation at a reasonable level. It is expected that the Fed will raise rates at its March meeting. The national bank raised rates three times in the previous year. The 30-year rate was 4.22 percent as of Feb. 1, which was the highest since March 2016.

The rate for 15-year fixed-rate loans was 3.68 percent as of Feb. 1, which was the highest since July 2011. These loans tend to be widely used by those who are looking to refinance their current loans. The rate for a five-year adjustable mortgage was also at its highest since April 2011. It is important to note that these rates do not include points that some borrowers may pay ahead of time to get the lowest possible interest rate.

For most people, a mortgage represents the bulk of their overall debt. It also represents a debt that can take many years to pay off. Therefore, lenders generally want to make sure that homebuyers have the ability to make those payments over time. As part of the process, a lender may thoroughly review of a buyer's financial situation and include language in a mortgage contract to protect its interests.

An attorney could help a homebuyer review and understand the terms of a home loan. This may be possible whether a person is taking out the first mortgage on a property or is refinancing their current loan. By understanding a mortgage's terms, a buyer will be less likely to have their home go into foreclosure.

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