Potential homebuyers may be able to save money with a little-known financing option, but they still need to watch their credit.

Americans saw a chance to save a few dollars on their monthly mortgage payments and took it, pushing refinance applications up 40% versus a year ago.

The interest rate for a 15-year fixed rate mortgage is typically lower than 30-year fixed rates, for a few reasons. For one, lenders can recoup their money in half the time.

Mortgage interest rates may not fall much lower this October from where they currently are. Grace Cary/Getty Images After waiting for more than two years for interest rates to be cut, homebuyers ...

Mortgage applications dropped 10.0% amid rising interest rates and post-holiday adjustments.   Refinance activity declined 7%, while purchase app

Renewed concerns over tariffs and the broader economy drove treasury yields higher last week, and mortgage rates followed. As a result, total mortgage application volume dropped 10% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index.

With the Federal Reserve's July meeting on the horizon, many prospective homebuyers and homeowners are wondering what it could mean for mortgage rates. After years of relatively high borrowing costs, even the slightest dip could open doors for those hoping to buy or refinance. But the path forward is far from clear.

But in 2023 the average rate on a 30-year fixed mortgage was 6.8%, its highest in 22 years. Last year it was only slightly lower. And so the tricks of 40 years ago are back. Mr Sabic is among a small but growing band of homebuyers who have taken over their seller’s mortgage.