30 years fixed mortgage Rates

Several benchmark mortgage rates were down today. The average rates on 30-year fixed and 15-year fixed mortgages both receded. On the variable-mortgage side, the average rate on 5/1 ARMs floated higher.

Mortgage rates are in a constant state of flux, but they remain low by historical standards. If you're in the market for a mortgage, it could be a great time to lock in a rate. Just don't do so without shopping around first.

30-year fixed mortgages

The average 30-year-fixed mortgage rate is 3.44%, down 2 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.40%.

At the current average rate, you'll pay $445.70 per month in principal and interest for every $100, 000 you borrow. That's a decline of $1.11 from last week.

You can use Bankrate's mortgage calculator to get a handle on what your monthly payments would be and see the effect of adding extra payments. It will also help you calculate how much interest you'll pay over the life of the loan.

15-year fixed mortgages

The average 15-year-fixed mortgage rate is 2.72%, down 1 basis point over the last 7 days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $677 per $100, 000 borrowed. That's obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: you'll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 adjustable-rate mortgages

The average rate on a 5/1 ARM is 2.98%, adding 3 basis points from a week ago.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.98% would cost about $421 for each $100, 000 borrowed over the initial 5 years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.