Mortgage Rate Update — June 2, 2025
*Mountain America Credit Union*
As of today, June 2, 2025, mortgage rates for fixed second mortgage products remain steady compared to last week and prior periods where data is available. Both the 15-year fixed second mortgage and the 30-year fixed second mortgage with a 15-year balloon feature maintain unchanged annual percentage rates (APRs) at 8.164% and 8.343%, respectively.
Recent Rate Movements and Financial Implications
The absence of movement in these APRs over the past seven days indicates stability in borrowing costs for second mortgage options. No change in basis points means that yield spreads have held firm, reflecting consistent lender pricing amid current market conditions. While this stability may reduce uncertainty for borrowers considering these loan types, it also underscores that cost savings through rate improvements are unlikely in the immediate term.
For members evaluating financing strategies, even minor fluctuations in APR can materially affect monthly payments and cumulative interest expense, particularly on high-balance or longer-term loans. Here, the static nature of rates implies that the cost of borrowing has neither increased nor decreased recently, allowing borrowers to plan with predictable payment expectations.
Member Impact Considerations
- Homebuyers utilizing second mortgages: For those leveraging these fixed-rate second mortgage products—whether for purchase financing or supplemental funds—the unchanged rates suggest that locking in current terms offers a stable path forward without immediate pressure from rising costs.
- Borrowers managing existing debt or home equity needs: Members exploring additional financing through second mortgages can expect consistent repayment schedules without shifts in interest obligations due to rate volatility.
- First-time buyers and veterans: Though government-backed or primary first-lien loan programs are not featured today’s data set, understanding the steady pricing of fixed second mortgages may assist those coordinating multi-layered financing structures.
Practical Insights for Mortgage Strategy
Given the current environment:
- Borrowers valuing payment certainty should consider maintaining or initiating fixed-rate second mortgages to avoid exposure to future rate fluctuations.
- Evaluating refinancing options remains prudent; however, since rates have not decreased recently, benefits from refinancing second mortgages may be limited unless credit profiles improve or loan terms change.
- For members balancing multiple mortgage products, integrating fixed-rate second mortgages can provide predictability in overall debt servicing costs.
Conclusion: Data-Driven Recommendations
With no recent shifts in fixed second mortgage APRs, members are advised to assess their financial positions relative to these steady borrowing costs. Those prioritizing stability may find fixed-rate options align well with long-term planning objectives. Meanwhile, ongoing monitoring of market trends is essential to identify opportunities when favorable changes occur.
In all cases, evaluating your mortgage strategy through a comprehensive lens—including loan term preferences and total cost implications—will support informed decisions aligned with your financial goals.