Mortgage rates today

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Refinance rates have increased since last Tuesday, and so have adjustable rates on initial mortgages. Fixed rates are down by one or two basis points.

Even with the slight increases, mortgage rates are at historic lows overall. It could be a good day to lock in a rate. You may want to go with a fixed-rate mortgage rather than an ARM, though.

Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider fixed rates are much more advantageous for borrowers than adjustable rates these days.

Adjustable rates used to start lower than fixed rates, so they could be good options if you planned to move before your rate increased. However, fixed rates are lower than ARM rates right now. If your finances are solid, it could be a great day to lock in a low rate.

The best mortgage rates for Tuesday, January 12, 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 haven’t changed much since last Tuesday — the 30-year fixed rates are down by two basis points, 15-year fixed rates are down by one basis point, and 5/1 adjustable rates are up by four basis points. Mortgage rates have decreased overall 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

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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 are typically a sign of a struggling economy. Mortgage rates will probably stay low as the US continues to grapple with the COVID-19 pandemic.

The best refinance rates for Tuesday, January 12, 2021

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

30-year fixed
2.94%
2.89%
2.94%

15-year fixed
2.39%
2.33%
2.59%

10-year fixed
2.41%
2.36%
2.47%

Rates from Bankrate.

Refinance rates are up since last Tuesday. The 30-year refinance rates have held steady since this time last month, while 15-year and 10-year refinance rates have decreased.

How do 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.

You’ll pay a higher interest rate on a 30-year fixed mortgage than on 15-year or 10-year fixed-rate mortgages. For a long time, you’d also pay a higher rate on a 30-year fixed loan than on a 5/1 ARM. But right now, 30-year fixed rates the better deal.

Monthly payments are lower for 30-year terms than for shorter terms, because you’re spreading payments out over a longer period of time.

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

How do 15-year fixed mortgage rates work?

With a

Source:: Business Insider

      

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