Fixed mortgage Rates
Multiple closely watched mortgage rates trended upward today. The average rates on 30-year fixed and 15-year fixed mortgages both ticked up. The average rate on 5/1 ARMs, meanwhile, also notched higher.
Rates for mortgages 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 be sure to shop around.
30-year fixed mortgages
The average 30-year-fixed mortgage rate is 3.47%, up 4 basis points over the last 7 days. 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 a combined $447.37 per month in principal and interest for every $100, 000 you borrow. That's $2.22 higher compared to last week.
You can use Bankrate's mortgage calculator to figure out your monthly payments and see how much you'll save by adding extra payments. It will also help you calculate how much interest you'll pay over the life of the loan.
The average 15-year-fixed mortgage rate is 2.70%, up 2 basis points over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $676 per $100, 000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 quickly.
5/1 adjustable-rate mortgages
The average rate on a 5/1 ARM is 2.99%, ticking up 4 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 2.99% would cost about $421 per month for the initial 5 years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.