5 Yr fixed mortgage Rates

Several benchmark mortgage rates cruised higher today. The average rates on 30-year fixed and 15-year fixed mortgages both trended upward. The average rate on 5/1 ARMs, the most popular type of variable rate mortgage, ticked downward.

Rates for mortgages change daily, but they remain much lower overall than they were before the Great Recession. 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 3.54%, up 4 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 $451.28 per month in principal and interest for every $100, 000 you borrow. That's an increase of $2.24 over what you would have paid last week.

You can use Bankrate's mortgage calculator to estimate your monthly payments and see what the effects of making extra payments would be. 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 2.79%, up 9 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $681 per $100, 000 borrowed. That's clearly 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 save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

5/1 adjustable-rate mortgages

The average rate on a 5/1 ARM is 3.03%, sliding 2 basis points over the last week.

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 3.03% would cost about $423 for each $100, 000 borrowed over the initial 5 years, but could increase by hundreds of dollars afterward, depending on the loan's terms.