Several benchmark mortgage rates ticked up today. The average for a 30-year fixed-rate mortgage floated higher, but the average rate on a 15-year fixed ticked downwards. Meanwhile, the average rate on 5/1 adjustable-rate mortgages climbed.
Mortgage rates are constantly changing, but, overall, they are very low by historical standards. If you’re in the market for a mortgage, it could make sense to lock if you see a rate you like. Just don’t do so without shopping around first.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.95 percent, up 2 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.00 percent.
At the current average rate, you’ll pay principal and interest of $474.54 for every $100,000 you borrow. That’s up $1.15 from what it would have been last week.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be 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 3.18 percent, down 4 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $699 per $100,000 borrowed. The bigger payment may be a little tougher to find room for in your monthly budget than a 30-year mortgage payment would, 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 faster.
The average rate on a 5/1 ARM is 3.88 percent, adding 1 basis point since the same time 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 3.88 percent would cost about $471 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.