Mortgage rates showed no clear direction today, but one key rate trended upward. The average for a 30-year fixed-rate mortgage increased, but the average rate on a 15-year fixed held steady. Meanwhile, the average rate on 5/1 adjustable-rate mortgages tapered off.
Rates last updated on December 29, 2020. 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 are in a constant state of flux, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just be sure to shop around.
Compare mortgage rates in your area now.
30-year mortgages
The average rate for a 30-year fixed mortgage is 2.88 percent, up 2 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 2.94 percent.
At the current average rate, you’ll pay principal and interest of $415.16 for every $100,000 you borrow. That’s an increase of $1.07 over what you would have paid last week.
You can use Bankrate’s mortgage rate calculator to figure out your monthly payments and see what the effects of making extra payments would be. It will also help you computehow much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.37 percent, unchanged since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $661 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 come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
5/1 ARMs
The average rate on a 5/1 adjustable rate mortgageis 3.03 percent, falling 1 basis point over the last week.
These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.03 percent would cost about $423 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage rates
The average rate for the benchmark jumbo mortgage is 2.90 percent, up 2 basis points over the last seven days. Last month on the 29th, the average rate on a jumbo mortgage was above that, at 2.98 percent.
At today’s average jumbo rate, you’ll pay $416.23 per month in principal and interest for every $100,000 you borrow. That’s an extra $1.07 compared with last week.
To stay up to date with daily mortgage rates, see Bankrate’s daily rates page.
How to get the best rate
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 looking 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 remain current on today’s rates. If you’re not happy with the results there, 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