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Mortgage rates are mixed today. The average rate on 30-year fixed mortgages rose, the average rate on 15-year mortgages fell and the average rate on 5/1 ARMs rose.
While rates on mortgages change daily, overall, they are currently near historical lows. If you’re in the market to purchase or refinance, it’s a great time to lock in a rate. Be sure to shop around for the best mortgage rates.
30-year fixed mortgages
The average 30-year fixed-rate mortgage is 3.73%, up 5 basis points from a week ago.
At the current average rate, you’ll pay about $462 per month in principal and interest for every $100,000 you borrow.
You can use this mortgage calculator to estimate your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
| Product | Rate | Change | Last week |
|---|---|---|---|
| 30 year fixed | 3.73% | 0.05 | 3.68% |
| 15 year fixed | 2.71% | 0.01 | 2.72% |
| 30 year fixed jumbo | 4.22% | 0.01 | 4.23% |
| 30 year fixed refinance | 3.61% | 0.06 | 3.67% |
15-year fixed mortgages
The average 15-year fixed-rate mortgage is 2.71%, down 1 basis point from a week ago.
Keep in mind that shorter-term loans like 15-years come with a trade-off: You’ll pay more per month, but you’ll also save thousands of dollars over the life of the loan.
For example, monthly payments on a 2.71%, 15-year loan would cost around $677 for every $100,000 borrowed.
Over a 15-year term, the total interest payments would be around $21,810. That’s about $44,503 less than what you’d pay in interest with a 30-year loan at today’s rate.
5/1 adjustable-rate mortgages
The average 5/1 ARM is 2.9%, down 16 basis points from a week ago.
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.
Monthly payments on a 5/1 ARM at 2.9% would cost about $416 per month for the initial 5 years. With rate caps of 2/2/5, monthly payments could balloon to $727 per $100,000 at the final adjustment.
Refi a VA loan
VA loans are have become life savers for veteran homeowners struggling to refinance with conventional loans.
The biggest advantage to one of these loans is that you can refinance up to 100% of the home’s value, and there’s no mortgage insurance.
If you can qualify, these loans are certainly worth consideration.
Here are 3 ways to refinance a VA home loan.
Where rates are headed
According to Bankrate’s Rate Trend Index, none of the panelists think mortgage rates will increase over the next week or so, 54% think rates will fall and 46% think rates will remain the same.
Follow me on Twitter: @MitchStrohm
You will see these rates listed on Bankrate site averages; these calculations are run after the close of the business day. Included there are rates and/or yields we have collected on the previous day for a specific banking product.
Mortgage rates for Friday, June 24 - Bankrate.com
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