Mortgage rates today

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Mortgage and refinance rates have shifted slightly since last Monday, but not drastically.

Mortgage and refinance rates are at historic lows overall, so it could be a good time to lock in a rate. You’ll probably get the best deal on a fixed-rate mortgage, not an adjustable-rate mortgage, though.

Mat Ishbia, CEO of United Wholesale Mortgage, told Business Insider ARMs don’t have any advantages to fixed-rate mortgages right now.

ARM rates used to start lower than fixed rates, and there was always the chance your rate could decrease later. But fixed rates are lower than adjustable rates these days, and they’re so low that you probably want to lock in a great rate while you can.

Today’s mortgage rates: Monday, January 11, 2021

Mortgage type
Average rate today
Average rate last week
Average rate last month

30-year fixed
2.65%
2.67%
2.71%

15-year fixed
2.16%
2.17%
2.26%

5/1 ARM
2.75%
2.71%
2.79%

Rates from the Federal Reserve Bank of St. Louis.

Mortgage rates have shifted slightly since last Monday, and a little more since this time last month.

In general, mortgage rates are at all-time lows. The downward trend becomes more apparent when you look at rates from six months and a year ago.

Mortgage type
Average rate today
Average rate 6 months ago
Average rate 1 year ago

30-year fixed
2.65%
3.03%
3.64%

15-year fixed
2.16%
2.51%
3.07%

5/1 ARM
2.75%
3.02%
3.30%

Rates from the Federal Reserve Bank of St. Louis.

Low rates usually signal a struggling economy. Mortgage rates will probably stay low as the US continues to struggle with the COVID-19 pandemic.

Today’s refinance rates: Monday, January 11, 2021

Mortgage type
Average rate today
Average rate last week
Average rate last month

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30-year fixed
2.94%
2.90%
2.94%

15-year fixed
2.39%
2.37%
2.59%

10-year fixed
2.40%
2.38%
2.47%

Rates from Bankrate.

Refinance rates have increased since last Monday. The 30-year refinance rates are the same as they were this time last month, while 15-year and 10-year refinance rates have gone down.

How 30-year fixed mortgage rates work

A 30-year fixed-rate mortgage locks in your rate for the entire life of your loan, and you’ll pay off the mortgage over 30 years.

A 30-year fixed mortgage comes with a higher interest rate than a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but 30-year terms have become the better deal recently.

Your monthly payments on a 30-year term will be lower than on a shorter-term mortgage. You’re spreading payments out over a longer period of time, so you’ll pay less each month.

You’ll pay more in interest in the long term with a 30-year term than you would for a 15-year mortgage, because a) the rate is higher, and b) you’ll be paying interest for longer.

How 15-year fixed mortgage rates work

With a 15-year fixed term, you’ll pay down your mortgage over 15 years, and your rate stays the same the entire time.

You’ll pay less in interest on a 15-year term than on a 30-year term. The 15-year rates are lower, and you’ll pay off the mortgage 15 years earlier.

You’ll pay more each month on a 15-year term than on a longer term, though. You’re paying off the …read more

Source:: Business Insider

      

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