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Mortgage rates fell today. The average rate on 30-year fixed mortgages dropped, as did the average rate on 15-year mortgages and the average rate on 5/1 ARMs.
While rates on mortgages fluctuate daily, keep in mind that they are currently around historical lows overall. Anyone purchasing or refinancing will find it’s a great time to lock in a deal. Be sure to shop around for the best mortgage rates.
30-year fixed mortgages
The average 30-year fixed-rate mortgage is 3.65%, down 18 basis points from a week ago.
At the current average rate, you’ll pay about $457 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 | 3.65% | 0.18 | 3.83% |
| 15 year fixed | 2.76% | 0.18 | 2.94% |
| 30 year fixed jumbo | 4.29% | 0.20 | 4.49% |
| 30 year fixed refinance | 3.67% | 0.11 | 3.78% |
15-year fixed mortgages
The average 15-year fixed-rate mortgage is 2.76%, down 18 basis points from a week ago.
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 2.76%, 15-year loan would cost around $679 for every $100,000 borrowed.
Over a 15-year term, the total interest payments would be around $22,238. That’s about $42,447 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 2.92%, down 2 basis points from a week ago.
5/1 ARMs are best for those who expect to sell or refinance before the first or second adjustment, because when the loan adjusts, rates could be substantially higher.
Monthly payments on a 5/1 ARM at 2.92% would cost about $417 for the initial 5 years. With rate caps of 2/2/5, payments could balloon to $728 per $100,000 at the final adjustment.
Questions to ask your lender
If you’re meeting with a mortgage lender for the first time, go prepared. Bring a list of questions to ask.
The first one should be about the interest rate – ask for the lender’s loan estimate, which breaks down the interest rate and fees.
Here’s what to ask when you apply for a mortgage.
Where rates are headed
According to Bankrate’s Rate Trend Index, 70% of panelists think mortgage rates will increase over the next week or so, none think rates will fall and 30% 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 Wednesday, June 1 - Bankrate.com
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