Several significant mortgage rates were seen to rise today. The average interest rate for both a 15-year fixed and a 30-year fixed mortgage increased. At the same time, the average rate for 5/1 adjustable rate mortgages also increased. Mortgage interest rates are never set in stone, but interest rates are the lowest they have been in years. For those wishing to lock in a fixed rate, now is an optimal time to buy a home. But as always, be sure to consider your personal goals and circumstances before purchasing a house, and shop around to find a lender who can meet your needs.
Check mortgage rates that meet your different needs
30-Year Fixed Rate Mortgage
The average interest rate for a standard 30-year fixed mortgage is 3.09%, an increase of 1 basis point from a week earlier. (One basis point is equal to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will typically have a monthly payment less than a 15-year one – but often a higher interest rate. You will not be able to pay your home quickly and you will pay more interest over time, but if you want to minimize your monthly payment, a 30-year fixed mortgage is a good option.
15-Year Fixed Rate Mortgage
The average rate for a 15-year, fixed mortgage is 2.38%, an increase of 1 basis point from a week earlier. Even if the interest rate and loan amount are the same, you will have to make a larger monthly payment with a fixed mortgage of 15 years than a fixed 30-year mortgage. However, as long as you are able to afford the monthly payment, there are many benefits of a 15-year loan. You are likely to get the lowest interest rate, and you will pay less interest in total because you are paying off your mortgage very quickly.
5/1 Adjustable Rate Mortgage
The 5/1 ARM has an average rate of 3.11%, an increase of 3 basis points from seven days ago. With an ARM mortgage, you will usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, changes in the market may increase your interest rate after that time, as detailed in the terms of your loan. For those borrowers who plan to sell or refinance their home before the rate changes, ARM can be a good option. If not, market changes can increase your interest rate significantly.
Mortgage rate trends
We use the information collected by Bankrate, owned by the same parent company as CNET, to track these daily rate changes. This table summarizes the average rates offered by lenders nationwide:
Average mortgage interest rate
|Set 30 years||3.09%||3.08%||+0.01|
|15 years fixed||2.38%||2.37%||+0.01|
|30-Year Jumbo Mortgage Rate||3.26%||3.26%||N / C|
|30-year mortgage refinance rate||3.14%||3.14%||N / C|
Rates until May 4, 2021.
How to Find Personalized Mortgage Rates
When you are ready to apply for a loan, you can reach a local mortgage broker or search online. To find the best home mortgage, you have to consider your goals and current finances. Specific mortgage rates will vary depending on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. A high credit score, high down payment, low DTI, low LTV, or a combination of those factors can help you get a lower interest rate. In addition to the mortgage interest rate, factors including closing costs, fees, discount points and taxes can also factor in the cost of your home. Make sure you talk to several lenders – for example, local and national banks, credit unions and online lenders – and comparison shop to find the best loan for you.
What is the best loan term?
An important thing to consider when choosing a mortgage is the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. The mortgage is divided into fixed rate and adjustable rate mortgages. For fixed-rate mortgages, interest rates are set for the life of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (typically five, seven or 10 years), then the rate changes annually based on the current interest rate in the market.
One thing to think about when deciding between a fixed rate and an adjustable rate mortgage is how long you plan to stay in your home. If you plan to stay in a new house for a long time, a fixed rate mortgage may be a better option. Fixed-rate mortgages offer more stability than periodically adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates. However you can get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a few years. The term “best” loan for all depends on your situation and goals, so be sure to keep in mind what is important to you when choosing a mortgage.