Mortgage rates diverged today, but one key rate sunk lower. The average for a 30-year fixed-rate mortgage decreased, but the average rate on a 15-year fixed ticked up. The average rate on 5/1 adjustable-rate mortgages, meanwhile, increased.
Rates last updated on January 19, 2021. These rates are averages based on the assumptions shown here. Actual rates on-site may vary.
Data source: Bankrate overnight averages data
Rates for mortgages change daily, but overall, they are very low by historical standards. If you’re in the market for a mortgage, it may make sense to go ahead and lock if you see a rate you like. Just don’t do so without shopping around first.
Compare mortgage interest rates from lenders nationally.
30-year fixed-rate mortgages
The average rate for a 30-year fixed mortgage is 2.91 percent, a decrease of 2 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 2.86 percent.
At the current average rate, you’ll pay $416.77 per month in principal and interest for every $100,000 you borrow. That’s down $1.07 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 how much you’ll save by adding extra payments. It will also help you determinehow much interest you’ll pay over the life of the loan.
15-year mortgage rates
The average 15-year fixed-mortgage rate is 2.39 percent, up 1 basis point since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $662 per $100,000 borrowed. The bigger payment may be a little harder 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 more rapidly.
5/1 Adjustable Rate Mortgage Rates
The average rate on a 5/1 adjustable rate mortgageis 2.99 percent, climbing 6 basis points over the last 7 days.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 2.99 percent would cost about $421 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage rates
The average jumbo mortgage rate today is 2.95 percent, down 3 basis points since the same time last week. Last month on the 19th, jumbo mortgages’ average rate was below that, at 2.88 percent.
At the average rate today for a jumbo loan, you’ll pay a combined $418.91 per month in principal and interest for every $100k you borrow. That represents a decline of $1.62 over what it would have been last week.
To stay up to date with daily mortgage rates, check out Bankrate’s rates hub.
Where to find the best rates
Mortgage rates can vary largely based on overarching market forces, the loan amount, your location, your financial situation and how eager mortgage lenders are to get your business. Remember that the rates we quote are averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.
It’s key when you’re searching for a loan to shop around and compare and contrast all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.
Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and stay up to date on current rates. If you’re not happy with the results you see between these pages, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.
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Source: bankrate.com