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Better news about mortgage rates, the economy, and homeownership.

News & Insights | Mortgage News

![Mortgage News: See How This Couple Saved On Their New Build](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F9509ff2a064e41c2b3c741140fd9ce8f)

<br>

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

## How Mateo and Ale put down roots in a new build 

Mateo and Ale found their perfect home before it was even constructed. It was part of a new development in Woodland, California, close to their family, work, schools, and parks. 

They locked in the listing price with a deposit, and over the course of a year, watched the house take shape while they saved for a down payment. 

When it came time for a mortgage, the couple chose Better Mortgage over their builder’s in-house lender. “It was a no-brainer,” says Mateo. The in-house lender offered incentives and Better Mortgage matched each one while offering lower costs.

<br>

<iframe width="100%" height="400" src="https://www.youtube.com/embed/M7_awdyU3m8?rel=0&amp;modestbranding=1" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

<br>

---

🎥 [Read more about Mateo and Alejandra's story](https://better.com/content/finding-home-mateo-and-ale-testimonial)
⏱️️ [See how much you can save on a new build](https://better.com/start) 

---

## 3 low-cost renovations that step up your home’s value

![Two People Sitting Between Cans of Paint and a Ladder](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F19c761d5042e41f4830778ac34fb9df3)

Boosting your property value doesn’t require knocking down walls. Start small with easy changes that improve your life now, and appeal to an appraiser or homebuyer later. 

#### Swap out bathroom fixtures

Change up outdated faucets, knobs, mirrors and lighting for a modern feel. It can cost anywhere from $500 to $2,000.

#### Add crown molding

Complement any room with crisp, clean crown molding. It’s $7-$16 per square foot to install, which is about $1,100 for the average living room.

#### Spruce up the lawn

Impress visitors before they even walk through the door. Get fertilizer, garden tools, and a lawn mower for less than $1,000 at your local hardware store. 

---

💰 [Pay for renovations with a cash-out refinance](https://better.com/content/is-a-cash-out-refinance-right-for-you/)
☎️ [Review your options with a Better Mortgage Home Advisor](https://better.com/start)

---

## Buying is cheaper than renting in more than half of the 50 biggest cities

Home prices are rising—and rent is, too. January marks the 8th month that rental costs jumped by double digits, going up [19.8%](https://www.realtor.com/research/january-2022-rent/) for homes with up to 2 bedrooms.

In 26 of the 50 largest cities around the country, it’s actually cheaper to buy than rent. Monthly homebuying costs in places like Cleveland, Pittsburgh, Tampa, and Detroit were found to be [20%](https://www.realtor.com/research/january-2022-rent/) lower than renting. 

If you’re not already a homeowner, becoming one now could save you a lot in the long run. 

---

📝 [Estimate your home costs with Better Mortgage to run the numbers](https://better.com/start)
📚 [Run the numbers on renting vs. buying](https://better.com/rent-vs-buy-calculator) 

---

#### 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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<br><br>
<p class="legal">This newsletter does not constitute an endorsement or recommendation of Better Mortgage Corporation; Better Real Estate, LLC; Better Cover, LLC; Better Settlement Services, LLC; or their services. Better Cover is solely responsible for homeowners insurance services. Better Mortgage is solely responsible for making all credit and lending decisions with respect to mortgage loans.</p>

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Discover how this couple saved big on their new build home with smart tips, expert strategies, and financing advice. Learn how to save on your dream home too!

See How This Couple Saved On Their New Build

Blog post image for See how this couple saved on their new build

See how this couple saved on their new build

![Mortgage News: More Affordable Homes Are Hitting The Market](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fc459be4c0d0844dbae9c72facb27a53a)

<br>

## The market just got a record high boost of affordable listings 

Housing inventory has been sitting at a historical low point for over a year, but a rush of affordable homes for sale should open up more options for homebuyers. A [new report shows](https://www.google.com/url?q=http://www.redfin.com/news/real-estate-price-tier-report-q3-2021/&sa=D&source=docs&ust=1636740222711000&usg=AOvVaw3Ub2mGPOJjdxxUcZR2yzHh "Redfin") that the country’s most affordable listings—those priced [below 95% of others](https://qz.com/2085545/the-us-saw-an-increase-in-number-of-affordable-homes-on-market/ "QZ.com") on the market—rose by 13% year-over-year in the last few months. That translates to about 78,000 affordable homes on the market. 

The influx comes alongside the end of the government’s pandemic relief program which allowed homeowners to pause their mortgage payments temporarily. In October, [many forbearance plans came to an end](https://better.com/content/prepare-for-a-wave-of-new-listings-this-month "Better.com"), and some owners are likely listing their homes to regain financial stability. 

While the surge of supply is great news, it’s still not enough to offset the country’s [5-million home supply gap](https://www.cnbc.com/2021/09/14/america-is-short-more-than-5-million-homes-study-says.html "CNBC") created by decades of underproduction. Buyers should expect hot competition for these listings, and being prepared can help them get ahead. 
If you’re shopping for a home, it helps to get a clear understanding of what you can afford and what you’ll need to provide at closing. Take [a few minutes to get pre-approved](http://better.com/start "Better.com") for a detailed look at your mortgage options, with personalized rates and estimated payments. You’ll also be connected with a licensed Home Advisor who can help guide you through the numbers and show you how to save. 

![Chart: Year-Over-Year Active Listings Ending September 30, 2021](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F0f1364c68434474f8bb3f3be30ad2930)
<p class="legal">Source: Redfin analysis of MLS data</a></p>

## Refinancing should save homeowners $35B by the end of 2022

As many as [14 million homeowners](https://www.cnbc.com/video/2021/11/02/more-than-14-million-homeowners-refinanced-during-the-pandemic.html "CNBC") around the country refinanced in the last year and a half, which collectively saved a total of $14 billion. That’s now expected to rise to [$35 billion by the end of 2022](https://www.cnbc.com/video/2021/11/02/more-than-14-million-homeowners-refinanced-during-the-pandemic.html "CNBC"). 

Rates may be rising from pandemic lows, but the time to save on a refinance isn’t over. The [30-year fixed rate average dropped to 2.98%](http://www.freddiemac.com/pmms/ "Freddie Mac") this week, just under the 3% threshold it’s been hovering around since last summer. It’s estimated that another [10 million homeowners](https://www.cnbc.com/video/2021/11/02/more-than-14-million-homeowners-refinanced-during-the-pandemic.html "CNBC") could lower their mortgage rate by at least 0.75%. That could be enough to lower your monthly payment, consolidate debt, or provide cash to help with holiday shopping or home renovations. 

Now is the time to get the ball rolling, as rates are [expected to rise slowly](https://better.com/content/the-fed-decision-will-likely-drive-rates-up "Better.com") through the rest of the year. [See your rates with Better Mortgage](http://better.com/start "Better Mortgage") to find out how much you could save, with zero obligations or impact to your credit score. 

## First time buying a home? Find out if you can save through one of these programs

![Chart: Toughest Challenges Facing First-Time Homebuyers](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F87e92cbfb68e4e8bbe579ba1781d8261)
<p class="legal">Source: <a href="https://www.opendoor.com/w/blog/2021-first-time-homebuyers-report">Opendoor</a></p>

Today’s market is competitive for anyone, but first-time buyers have the extra challenge of saving up for a down payment, closing costs, and other homebuying costs without the help of existing home equity. It may be why [39% of first-time homebuyers](https://www.opendoor.com/w/blog/2021-first-time-homebuyers-report "Opendoor") say they had trouble coming up with a down payment, and 85% cited challenges at the offer stage. 

Your down payment doesn’t have to be a stumbling block on the way to homeownership. There are different types of loans available with different down payment options, ranging anywhere [from 3% to 20%](https://better.com/content/how-much-should-you-put-down-on-a-house "Better.com"). You could explore the [FHA loan](https://better.com/content/what-is-an-fha-loan/ "Better.com") or [USDA loan](https://www.usdaloans.com/program/eligibility/ "USDA Loans"), which offer more flexibility around credit history and debt than conventional loans. Follow [our guide to exploring assistance programs, loans, and grants](https://better.com/content/first-time-homebuyer-loan-grants-programs "Better.com") that can help you get more for your money as a first-time homebuyer.

Once the down payment is out of the way, the offer stage may hold challenges too. If you don’t have enough to outbid competition, you can [quadruple your chances](https://www.redfin.com/news/most-effective-bidding-war-strategies-2020-2021/ "Redfin") of getting accepted by making your offer entirely in cash. With the Better Cash Offer program, you won’t need to front the cash yourself. Better Real Estate will work with you to find a home you love, then lend you the cash to buy it. [Learn more about the program](https://better.com/b/cash-offer/ "Better Cash Offer") to see if you qualify. 

![Modern Style Light Green and Grey Home Against Blue Sky](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F6dc4a682005b4052bd3782c5c87469e4)

#### Considering a home loan?

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

<br>

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Want to buy a home for the first time? More affordable homes are hitting the market now, giving first-time buyers more choices and a better shot at ownership.

More Affordable Homes Are Hitting The Market

Blog post image for More affordable homes are hitting the market

More affordable homes are hitting the market

![Real Estate Trends: Here’s What First-time Homebuyers Priced Out of The Market Need To Know](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Ff0a575d87a78431d9eab5b9a7148595d)

<br>

Here’s a look at the latest developments in the real estate market.

<ul>
<li><strong>First-time homebuyers are being priced out of the market, with only 29% of existing-home sales in August going to first-time buyers, according to <a href="https://www.bloomberg.com/news/articles/2021-09-29/home-prices-jump-american-dream-of-buying-a-house-is-getting-crushed">Bloomberg.com</a>.
</strong></li>
<li><strong>The 12-month rise in home prices reached a record-setting 18.1% in August, the highest in the 45-year history of the index, reported <a href="https://www.corelogic.com/tag/home-price-index/">CoreLogic</a>. 
</strong></li>
</ul>

#### Industry Trend 

In August, only 29% of existing-home sales went to first-time homebuyers, as first-time homebuyers find themselves priced out of the market.  That is the lowest share for first-time buyers since January 2019, according to [The National Association of Realtors](https://www.nar.realtor/blogs/economists-outlook/less-intense-multi-bidding-and-fewer-first-time-buyers-in-august-2021 "external"). The problem is a shortage of “affordable” homes on the market and an influx of first-time buyers thanks to low interest rates and the increased attraction of homeownership. 

As home prices continue to increase, there are [fewer choices for first-time buyers](https://www.bloomberg.com/news/articles/2021-09-29/home-prices-jump-american-dream-of-buying-a-house-is-getting-crushed "external") who are at a competitive disadvantage simply because first-time homebuyers don’t have equity from existing homes to use for their next home purchase. If buyers can wait and save more for a down-payment through year-end, they will have a more competitive edge. Industry experts expect more homes to come on the market as we move into 2022. 

"Home prices continue to escalate at a torrid pace as a broad spectrum of buyers drive demand for a limited supply of homes," explains Frank Martell, president, and CEO of CoreLogic, a real estate data and information firm. "First-time buyers and those in more financially constricted situations are struggling to [find a home they can afford](https://better.com/how-much-home-can-i-afford), compared to peers who have more financial flexibility or equity wealth to support a purchase.”

As we approach the Holiday season, traditionally a slower time with fewer buyers out looking, it’s an opportunity for first-time buyers to double down on their efforts. Buyers in colder climates may have the advantage of less competition as moving in January or February is typically a deterrent from buying.

Aaron Pinkston, a Better Real Estate Agent from Charlotte, North Carolina, talks numbers for first-time buyers, “Price is one component of affordability. Interest rates are the other because, for most first-time homebuyers, it comes down to total payment. What's wild is [interest rates](https://better.com/mortgage-rates/purchase/) and payments have about a 1 to 8 relationship, so for every 1% increase in interest rates, first-time homebuyers can afford 8% less home.”

#### What We Are Seeing at Better Mortgage 

- In 2021’s third quarter, Better Mortgage is seeing first-time buyer applications grow 150% compared to the same time last year. Year-to-date first-time buyer applications have increased 179% over last year. 

Lucy Randall, Director of Customer Communications at Better Mortgage, explains some steps first-time buyers can take to be competitive. “In today's hot market, anything that a customer can do to increase the certainty of their offer in the seller's eyes will help. That’s why [cash offers](https://better.com/content/all-cash-offers-how-to-make-a-winning-bid-on-a-house/) and [contingency-free](https://better.com/content/how-to-win-a-real-estate-bidding-war-in-a-competitive-market) offers typically win. There are multiple ways that potential borrowers can increase the strength of their offer.These include [getting pre-approved](https://better.com/content/how-to-get-pre-approved-for-a-mortgage) (which you can do in as little as 3 minutes at Better Mortgage.), getting a verified pre-approval, or even becoming a cash buyer.” 

First-time buyers and their agents should reach out to [Better](https://better.com/) Mortgage to discuss how to show sellers they mean business. And how to increase their chances of making a successful offer. 

#### Realtor.com Reports Homeownership Still More Affordable For Millennial Buyers 

- Despite home prices skyrocketing to new highs in 2021, homeownership is still more affordable for the typical 2021 household than in previous years, according to [a new Realtor.com report](https://www.realtor.com/research/is-homebuying-out-of-reach-in-the-us/ "external"). 

- In May, monthly mortgage payments accounted for a smaller share of median household income (20.9%) than during the 2008 Great Recession (25.3%). 

#### Industry Trend

Danielle Hale, chief economist at realtor.com, does a deeper dive. “Millennial homebuyers are trading up, keeping the resale market competitive. Even though prices are at record highs, low mortgage rates are keeping monthly payments more manageable,” explains Hale. “Then you add in rising incomes as employers compete for workers to the picture. That does offset the rise in prices to some degree,” Hale adds. 

#### What We Are Seeing at Better Mortgage

- While interest rates are low, Millennials should contact <a href="https://better.com/">Better Mortgage</a> to take advantage of these low rates and  offset their monthly mortgage payments. 

<br>

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Home prices continue to rise, but the holiday season could spell opportunity for some. See multiple ways first-time buyers can get a competitive edge.


What First-time Buyers in Hot Housing Markets Need To Know  

Blog post image for Advice for First-Time Homebuyers Facing Rising Prices

Advice for First-Time Homebuyers Facing Rising Prices

![Mortgage News: What Inflation Means For Refinance Rates](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F96ea5270b96b41bfbb1108005f43a931)

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

## What rising inflation means for refinance 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 drives mortgage rates up because 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 will keep going up, but likely [won’t pass 3.25%](https://better.com/content/rates-remain-low-but-could-rise-from-here). 

Getting the ball rolling on a refinance can likely save you more than trying to time the market. [Get your personalized rates and estimated payments](https://better.com/start) in minutes, with zero obligations or impact to your credit score. You may even be eligible for programs like [RefiNow](https://better.com/content/you-could-reduce-your-monthly-costs-with-refinow) and [RefiPossible](https://better.com/content/you-could-save-on-monthly-costs-with-refipossible-tm), which are estimated to save up to $3,000 per year. 

![Industry Average Mortgage Rates for the Week Ending on October 21 Sourced from Freddie Mac](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F962464ea96294d3fabf520dca976549f)

[Source: Freddie Mac](http://www.freddiemac.com/pmms/ "external")
#### 15-year rates are lower than 30-year rates—is a shorter loan term right for you?
Shorter loan terms often carry lower interest rates than the popular 30-year mortgage. This week is no exception, with the [15-year fixed rate average at 2.33%](https://www.google.com/url?q=https://www.foxbusiness.com/personal-finance/todays-mortgage-refinance-rates-october-22-2021&sa=D&source=docs&ust=1635366008038000&usg=AOvVaw22WrctsDubB2U875nXnstK) and the 30-year average at 3.09%. While a lower rate doesn't always mean more savings, there are benefits to a shorter term that could help you get more out of a refinance. 

A shorter term often means higher payments, so a 15-year loan can be a good choice if you’ve got some wiggle room in your monthly budget. On the flipside, you’ll build home equity faster, because a larger portion of each payment is going towards the principal—the amount you borrowed—rather than interest. On a 30-year mortgage, monthly payments may be lower, but there is more going towards interest. To get a closer look at how your payments break down, [try the Better Mortgage amortization calculator](https://better.com/content/amortization-schedule/). 

The 15-year mortgage term usually comes with fewer upfront costs, too. They’re often exempt from the [loan-level price adjustment fees](chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/viewer.html?pdfurl=https%3A%2F%2Fsinglefamily.fanniemae.com%2Fmedia%2F9391%2Fdisplay&clen=363560&chunk=true "external") that Fannie Mae and Freddie Mac can require for 30-year loans, and may come with lower insurance premiums. 

It all depends on your finances, priorities, and goals for a refinance. Read our [guide to 15- and 30-year fixed rate loans](https://better.com/content/15-vs-30-year-fixed-rate-mortgage/) to weigh your options, and find out what you can expect to pay for each term by [seeing your personalized mortgage rates](https://better.com/start). 
#### Considering a home loan?
Get your custom rates in minutes with Better Mortgage. 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/mortgage-rates/refinance">See today's refinance rates</a>  
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Learn how rising inflation influences current refinance mortgage rates, where they may be headed next, and why acting fast could save you money.

What inflation means for refinance rates

Blog post image for What inflation means for refinance rates

![Mortgage News: More Newly Built Homes May Be On The Way](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Ff432532e583544488b871b369c035d45)

<br>

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

## More new construction homes may be on the way, but competition is hot

Builders are starting to [feel more confident in the market](https://www.cnbc.com/2021/09/20/homebuilder-sentiment-improves-after-big-drop-in-lumber-prices.html "external"), and it’s a sign more new homes could be on the way. But with prices high and sales rising, competition likely won’t be cooling down anytime soon.

Builder sentiment, tracked by [the National Association of Home Builders](https://eyeonhousing.org/2021/09/builder-confidence-steadies-as-material-and-labor-challenges-persist/ "external"), rose one point in September to 76—the first increase in three months. The survey set a record high of 90 last November, before dropping when the pandemic created a spike in lumber prices and a shortage in labor. 

If you’re on the hunt for a newly built home, be prepared for intense competition. The median price of a new home has risen over $65,000 in the last year, hitting [$390,900 last month](http://www.mortgagenewsdaily.com/09242021_new_home_sales.asp "external"). The actual average price is $443,200. Sales are on the rise too, with the [seasonally adjusted annual rate of new home sales at 740,000](https://www.census.gov/construction/nrs/pdf/newressales.pdf "external") in August. 

The reality is, there are about [378,000 new homes](http://www.mortgagenewsdaily.com/09242021_new_home_sales.asp "external") available on the market right now, but only 36,000 are ready for occupancy. That means getting your hands on one—and getting to closing on time—requires preparation, a strong offer, and a good agent by your side. Read up on the [nuances of the new construction buying process](https://better.com/content/buying-a-new-construction-home/), and [what you can do to strengthen your offer](https://better.com/content/all-cash-offers-how-to-make-a-winning-bid-on-a-house). If you're ready to start house hunting, talk to [a Better Real Estate Agent](https://better.com/realestate). They can help you get an edge in today's market and save you money, too.

## How Stacey Foley saved on her home and invested in her family

![Abstract Mustard Yellow Image with Circular Photo of Two Homeowner's Embracing Within](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fb5a81c37018240b5af635025d823c479)

<br>

Refinancing can help lower your monthly payment, tap into your home equity, or reset your loan terms altogether. It can also provide extra cash to help support the people who matter most. For 57-year-old homeowner Stacey Foley, that’s her family. 

Last month, after living in her Stony Point, North Carolina home for two years, Stacey found out that her monthly mortgage payment of $890 would be going up to $1,010 a month. As a veteran of the banking and lending industry, she knew that refinancing could reduce the amount—and with today’s low mortgage rates, that now was a good time to make the move. “Coming from the industry, I knew it was the best time for us. We hadn’t put that much into the house to worry about,” she says. 

By refinancing with Better Mortgage, Stacey cut back her monthly payment even further, to just $800. That now saves her $210 each month, and roughly $2500 a year. So far, the extra cash has helped pay off an auto loan for her boyfriend’s vintage corvette, and set up some funds for her three new grandchildren due this winter. “This whole thing was a godsend… to save all this money,” she says. 

With mortgage rates [close to September 2020 lows](https://better.com/content/rates-remain-low-but-could-rise-from-here), it’s likely that most homeowners could still stand to save on a refinance. Find out [how low your payments can be](https://better.com/start), or read up on how to know [when it’s a good time for a new loan](https://better.com/content/is-it-a-good-time-to-refinance/).  

#### 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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Builder confidence is rising, and new construction homes are in high demand. Find out what it takes to navigate the hot competition.

More Newly Built Homes May Be On The Way

Blog post image for More newly built homes may be on the way

More newly built homes may be on the way

![Mortgage News: Why Today’s Homeowners Should Have Insurance](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2F8abd9e4666fb4d6c8da196217eed437b)
<br>

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

## 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 home. Your policy can provide the funds to repair or replace damaged property, 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 homeowners pay around [$90 a month](https://www.lemonade.com/blog/homeowners-insurance-cost/) 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 can help to make sure you’re protected, even if that means getting an additional policy. 

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. 

## With one less fee and low rates, it’s still a good time to refinance

Thanks to a steady market, mortgage rates remained in place for two weeks in a row. The [30-year fixed rate sat at 2.87%](http://www.freddiemac.com/pmms/ "external"), just 0.22% away from the all-time low it reached [in January](https://www.washingtonpost.com/business/2021/01/07/fixed-mortgage-rates-sink-lowest-levels-history-could-be-headed-higher/ "external"). 

It’s still a good time for many homeowners to refinance, especially now that the [FHA’s adverse market fee has been removed](https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Eliminates-Adverse-Market-Refinance-Fee.aspx "external"). This fee added an extra 0.5% to the loan balance, costing the average homeowner [$1,400](https://www.marketwatch.com/story/regulator-ditches-controversial-mortgage-refinance-fee-ahead-of-schedule-11626446564 "external") over the life of the loan. 

Roughly two thirds of the country’s mortgage applications come from homeowners refinancing, but that amount dropped [4% week-over-week](http://www.mortgagenewsdaily.com/09012021_applications_and_forbearances.asp "external"). Many more could be taking advantage of savings. To find out where you stand, crunch the numbers with the [Better Mortgage refinance calculator](https://better.com/content/refinance-calculator/) to see how much you could save. 

## 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>

 <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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With extreme weather happening more often, the integrity of your home may be at risk—and homeowners insurance could be the answer. 

Why Today’s Homeowners Should Have Insurance

Blog post image for Why today’s homeowners should have insurance

Why today’s homeowners should have insurance

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

<br>

## 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>  
 </div>
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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: How First-Time Buyers Can Compete As Prices Rise](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fe914f1f489d64d82bb4bf1ecd4d130a7)

<br>

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

<ul>
<li><strong>First-time buyer? Here’s how to avoid getting priced out.</strong></li>
<li><strong>More homeowners refinance while rates hover at a six-month low</strong></li>
<li><strong>New construction home sales dip as lumber costs rise</strong></li>
<li><strong>What is an escrow account?</strong></li>
</ul>

Anyone searching for a home today is up against rising prices, bidding wars, and intense competition. But the path to homeownership tends to be extra bumpy for first-time buyers, because they enter the market with smaller budgets and no home equity. In July, [37% of first-time buyers](https://www.inman.com/2021/07/16/first-time-buyers-still-eager-despite-snags-on-path-to-homeownership/ "external") said they had to set back their homebuying timeline after losing income during the pandemic. 

Instead of hitting pause on your search, there are some loan options that could help you compete for a home—without putting more money on the table. 

#### Make a lower down payment

It takes a [year longer to save for a 20% down payment](https://www.wkrn.com/news/local-news/reports-first-time-buyers-need-year-longer-to-save-for-20-percent-down-payment-compared-to-5-years-ago/ "external") than it did 5 years ago, which may be why [35% of buyers](https://www.nar.realtor/sites/default/files/documents/2020-downpayment-expectations-and-hurdles-to-homeownership-report-04-16-2020.pdf "external") cite it as their primary roadblock to owning a home. But 20% down isn’t always required—and last year, [roughly two-thirds of first-time buyers](https://www.zillow.com/research/how-long-to-save-a-down-payment-29735/ "external") put down less than that. 

With an [FHA loan](https://better.com/content/what-is-an-fha-loan/), you could put as little as 3.5% down on a home and still lock in competitive rates. These mortgages carry more lenient qualifying guidelines than conventional loans, especially when it comes to savings and credit scores, so it’s worth finding out [if it’s the right option for you](https://better.com/content/fha-loan-requirements/ "external").

#### Improve your debt-to-income ratio

Saving for a home can be tough to balance alongside student loan debt, which accounts for [20% of the decline](https://www.federalreserve.gov/publications/files/consumer-community-context-201901.pdf "external") in homeownership among young adults. But the reality is, lenders don’t look at how much student debt you have in total. They look at how you’re paying it down each month, typically through your debt-to-income (DTI) ratio. Learn [how to assess your DTI](https://better.com/content/what-is-a-good-debt-to-income-ratio/) to see where you stand, and raise your chances of [getting approved for a mortgage with student loans](https://better.com/content/getting-a-mortgage-with-student-loans/). 

#### Get the Better Appraisal Guarantee

Negotiating with a seller doesn’t always mean putting more cash on the table. [Waiving your appraisal contingency](https://better.com/content/appraisal-contingency/) can boost your odds of an accepted offer by 50%.* Normally, you’d risk losing your lender or having to change your loan terms. But with the [Better Appraisal Guarantee](https://welcome.better.com/better-appraisal-guarantee/), you could get the loan terms you locked no matter what the appraisal says.** 

Even with historically low inventory, first-time buyers still have a place in today’s market. And with mortgage rates as low as they are, it’s worth taking a look at what you can afford. [Crunch the numbers with our affordability calculator](https://better.com/content/a-better-home-affordability-calculator/) to see what a new home could look like with your budget. 

## More homeowners refinance while rates hover at a six-month low

Last week, the [30-year fixed rate average ticked up to 2.80%](http://www.freddiemac.com/pmms/ "external"). Even with the increase, the rate is at a 6-month low and still only 0.15% away from an all-time low of 2.65%. [Millions of homeowners](https://time.com/nextadvisor/mortgages/mortgage-news/do-you-qualify-to-save-on-refinance-loan/ "external") stand to save on a refinance, and many are taking note. Refinance applications have [jumped up 9% week-over-week](https://www.cnbc.com/2021/07/28/mortgage-rates-at-six-month-low-and-refinances-shoot-up.html "external") around the country. 

A refinance can lower your mortgage rate and monthly payments, and provide other benefits too. Whether you want a shorter loan term, an influx of cash, or fewer debt payments, getting a new loan can make it happen. [Find out how a refinance could help](https://better.com/content/6-reasons-to-refinance-your-mortgage/) you reach your financial goals, and [check your rates](https://better.com/start) to see how much lower your payments could be. 

## New construction home sales dip as lumber costs rise

Rising home prices are [tamping down the demand](https://better.com/content/how-to-get-an-offer-accepted-in-todays-market/) for new construction homes, and June saw the [lowest number of new home sales](https://www.cnbc.com/2021/07/26/housing-boom-is-over-as-new-home-sales-fall-to-pandemic-low.html "external") since April 2020. The price spike is thanks to a shortage in softwood lumber, which increased in cost by [over 300% during the pandemic](https://www.cnbc.com/2021/07/19/homebuilder-confidence-slips-in-july-as-construction-costs-rise.html "External"). Now it costs roughly 75% more than it did in 2019, but builders have had to raise their prices to keep up. 

It can be tough to bargain down the price of a newly built home. Instead, it may be easier to negotiate with a builder through upgrades to the home itself. Choose materials from their showroom that would add value to the property, like hardwood floors, or marble countertops. If you want to learn what to look out for, avoid, and prepare for in a new home sale, [read our quick and easy Q&A](https://better.com/content/buying-a-new-construction-home/). 

## What is an escrow account? 

Escrow accounts are specifically designed to hold money meant for home costs, whether it’s during the sale itself or throughout the course of a mortgage. They usually come into play after a loan is finalized, but it helps to know what they are beforehand too. [Get to know the ins and outs of escrow accounts](https://better.com/content/what-is-an-escrow-account/)—from what they are, to how they work, to why opening one could help protect your mortgage. 

## Considering a home loan?

Get your custom rates in minutes [with Better](https://better.com/) Mortgage. 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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<br><br>

<p class="legal">*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>

<p class="legal"><a href="https://welcome.better.com/better-appraisal-guarantee/">**See Better Appraisal Guarantee terms and conditions</a></p>

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First-time homebuyers are getting left behind as home prices skyrocket. Follow these tips to improve your standing, without putting more money down.

How First-Time Buyers Can Compete As Prices Rise

Blog post image for How first-time homebuyers can compete as prices rise

How first-time homebuyers can compete as prices rise

![Mortgage News 1/04/2021: Why 2020 Was the Year of the Home](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Ffbd69199dd804a1783589af2bfde3951)

<br>

Here’s a look at the latest developments in the mortgage market for the week beginning 1/4/21. 

<ul>
<li><strong>How Better Mortgage helped make 2020 the year of the home</strong></li>
<li><strong>More homeowners opt to defer or lower their payments amid financial struggles</strong></li>
<li><strong>Prices rise in middle America as buyers flee coasts</strong></li>
<li><strong>A guide to the underwriting process</strong></li>
</ul>

<h2>How Better Mortgage helped make 2020 the year of the home</h2>

To say that 2020 was a major year for homeownership would be an understatement. In the middle of a global pandemic, homes became more than just living spaces—they were offices, gyms, schools, creative studios, and more. Millions of people chose to buy or refinance in the last year, and Better Mortgage alone took on over 88,000 new clients, funding [over $20B in home loans](https://better.com/content/year-of-the-home-2020-review/). 

It was a historic year for interest rates. Due to intervention by the Federal Reserve, rates fell below previous records over a dozen times. Better Mortgage was able to offer competitive Market Rates, often lower than Freddie Mac PMMS rates, even as those benchmarks continued to drop.

<h4>Better Mortgage Market Rate* vs Freddie Mac Primary Mortgage Market Survey (PMMS) Rate** (July - December 2020)</h4>

![Graph: Better Mortgage 30 Year Fixed Rate vs Freddie PMMS 30 Year Fixed Rate](https://cdn.builder.io/api/v1/image/assets%2Fea37b90b89334a2ab1714e2159c75418%2Fa702e93a14a5404d88b719d10913dec5)

<p class="legal">This is not a commitment to lend. Interest rates are for informational purposes only.  Details on rate calculations below.</p>  

Economic hardship has been felt everywhere since COVID-19 first emerged in the U.S. in late winter, putting [40 million people out of work by May](https://www.housingwire.com/articles/heres-what-mortgage-forbearance-looked-like-in-2020/ "external"). With interest rates low, many homeowners [took the opportunity to refinance](https://better.com/content/winter-may-be-the-best-time-to-buy-a-home/). Better Mortgage saved clients who refinanced an annual total of over $300M.*** 

On the flip side, the same year saw the demand for homes rise. Many [millennial first-time buyers entered the market](https://better.com/content/millennials-drive-home-sales/), contributing to a home buying boom. As sales rose, however, so did home prices. Better Mortgage met the need for an affordable, transparent home loan experience, and saved 2020 homebuyers an average of $8,200 over the life of the loan.****  

Looking ahead to 2021, the lasting impacts of the pandemic are expected to [keep interest rates low, with a gradual rise](https://better.com/content/expect-rates-prices-sales-to-rise-in-2021/) throughout the year. There is still plenty of time for loan applicants to take advantage though, especially before prices and sales are [expected to climb as the year goes on](https://better.com/content/housing-sales-likely-to-continue-to-climb/). 

(For more on how Better Mortgage impacted the homeownership landscape, check out our [Year in Review](https://better.com/content/year-of-the-home-2020-review/).)

<h2>More homeowners opt to defer or lower their payments amid financial struggles</h2>

Alongside a nationwide vaccine rollout and second economic stimulus package, [2.8 million homeowners ended the year in forbearance](https://www.housingwire.com/articles/black-knight-2020-ends-with-2-8-million-in-forbearance/ "external"). Due to the high demand, the FHA announced they’ve extended the deadline for single-family borrowers to request forbearance up until February 28, 2021. 

For a growing number of homeowners, refinancing may be a more financially viable alternative to forbearance. While forbearance is a short-term measure used to avoid defaulting or foreclosure, [refinancing is an opportunity to renegotiate](https://better.com/content/refinance-vs-forbearance/) the terms of a home loan.

In late December, refinance applications made up [three quarters of all mortgage applications](https://www.housingwire.com/articles/mortgage-applications-increase-for-second-straight-week/# "external"), driving a 124% increase from the same period last year.

<h2>Prices rise in middle America as buyers flee coasts</h2>

Extended work-from-home policies and a desire for more space and comfort [drove an urban flight trend in 2020](https://better.com/content/opportunities-rise-downtown-condo-prices-drop/), as families moved away from tech hubs towards suburbs and smaller cities. 

Now, prices in those historically affordable cities are rising. Mid-American areas like Pittsburgh, Austin, Cincinnati, Cleveland, are seeing [price gains 10% higher](https://www.cnbc.com/2021/01/04/covid-real-estate-home-prices-rise-faster-in-middle-of-us.html "external") than they were last year. 

The shift could result in better deals for buyers in traditionally high-priced coastal markets. For example, [the Bay Area has seen a slower price incline](https://www.mercurynews.com/2021/01/04/bright-outlook-for-bay-area-home-sales-prices-in-2021/ "external") compared with other cities, despite historically high home values. 

<h2>A guide to the underwriting process</h2>

Underwriting is one of the final steps of the loan process, essentially deciding whether or not a home loan is approved. It involves taking a close look at an applicant’s entire financial picture and paying attention to a series of established risk factors.[ Here’s a handy guide](https://better.com/content/underwriting-process/) to what underwriters look for, the documents needed, and a timeline of the process. 

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

Get your custom rates in minutes at [Better.com](https://better.com/). Our team is here to walk you through your options and help you make an informed decision about which loan is right for you.

<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>  
 </div>

<br><br>

 <p class="legal">*Better Mortgage Market Rates were calculated from an average of rates using the assumptions below to provide a representative offered interest rate for each month. Assumptions include: $200K, $300K, $400K, $500K loan amount; 30-Year Fixed purchase, 30-Year Fixed rate and term refinance; borrower with above average credit (i.e., FICO score of 760 or higher); loan-to-value ratio of 80%; subject property is a Single Family Residence; subject property is borrower’s primary residence; subject property is located in one of our six highest volume metropolitan statistical areas.</p>

 <p class="legal">**Freddie Mac PMMS Rates are the result of surveys to lenders on the rates and points for their most popular 30-year fixed-rate conventional mortgage products, and an origination-weighted average of lender responses. The survey is based on first-lien prime conventional conforming home purchase mortgages with a loan-to-value of 80 percent. This average is widely regarded as the industry standard tracker of mortgage rates week over week.</p>

  <p class="legal">***Annual savings in loan payments for each loan are calculated as the monthly principal and interest payment of the borrower’s prior mortgage less the monthly principal and interest payment on their new loan from Better Mortgage, multiplied by 12 (savings are incurred each month in a year). Individual savings could vary based on current market rates, property type, loan amount, loan-to-value, credit score, debt-to-income ratio and other variables.</p>

  <p class="legal">****The average lifetime savings estimate is based on a comparison of the average interest rate offered by Better Mortgage to prospective borrowers for a $322,000 30-yr mortgage against the Mortgage Bankers Association index from April 2019 to April 2020. Individual savings could vary based on current market rates, property type, loan amount, loan-to-value, credit score, debt-to-income ratio and other variables.</p>

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Mortgage News: 2020 changed the homeownership game, and its effects are still being felt as we head into the new year. 

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