Multiple key mortgage rates decreased today. The average rates on 30-year fixed and 15-year fixed mortgages both tapered off. The average rate on 5/1 adjustable-rate mortgages, meanwhile, also trended down.
Rates as of January 4, 2021.
Data source: Bankrate overnight averages data
Rates for mortgages are in a constant state of flux, but, overall, they are very low by historical standards. If you’re in the market for a mortgage, it may be a great time to lock in a rate. Just make sure you’ve looked around for the best rate first.
View mortgage rates for a variety of loan types.
30-year mortgages
The average rate for a 30-year fixed mortgage is 2.87 percent, a decrease of 3 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.
At the current average rate, you’ll pay principal and interest of $414.63 for every $100,000 you borrow. That represents a decline of $1.60 over what it would have been last week.
You can use Bankrate’s mortgage payment calculator to figure out your monthly payments and see how much you’ll save by adding extra payments. It will also help you computehow much interest you’ll pay over the life of the loan.
15-year mortgages
The average 15-year fixed-mortgage rate is 2.34 percent, down 4 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $659 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 save thousands of dollars 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, ticking down 4 basis points from a week ago.
These loan types are best for people who expect to sell or refinance 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 2.99 percent would cost about $421 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 jumbo mortgage rate today is 2.89 percent, a decrease of 4 basis points over the last week. This time a month ago, the average rate was higher, at 2.95 percent.
At today’s average jumbo rate, you’ll pay $415.69 per month in principal and interest for every $100k you borrow. That represents a decline of $2.15 over what it would have been last week.
To stay up to date with daily mortgage rates, see our daily rates page.
How to get the best rate
Mortgage rates can differ widely based on overarching market forces, the loan amount, your location, your financial situation and how motivated mortgage lenders are to get your business. Keep in mind that the rates we quote are market 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 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 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