Mortgage rates today

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Mortgage and refinance rates have decreased since last Thursday, and they’re at historic lows overall. If you’re ready to buy a home or refinance, you’ll likely want to choose a fixed-rate mortgage over an adjustable-rate mortgage.

Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider that typically there’s an advantage to an adjustable-rate mortgage, in which the rate fluctuates after an initial period. That advantage is usually a lower rate for the fixed period.

However, he points out that ARMs don’t currently follow that pattern. Fixed rates are currently better than adjustable rates, because lenders want to keep customers banking with them for as long as possible. 

If your finances are in order, consider refinancing or getting a fixed-rate mortgage soon.

Today’s mortgage rates: Thursday, January 14, 2021

Mortgage type
Average rate today
Average rate last week

15-year fixed
2.44%
2.60%

30-year fixed
3.28%
3.52%

7/1 ARM
4.42%
4.81%

10/1 ARM
4.50%
4.88%

Rates from Ad Practitioners LLC.

Both fixed and adjustable mortgage rates are down since last Thursday.

Keep in mind, these are the national average rates for conventional mortgages, which are what you probably think of as “regular mortgages.” Rates may be different for government-backed mortgages through the FHA, VA, or USDA.

Mortgage rates are at historic lows overall. 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.

Today’s refinance rates: Thursday, January 14, 2021

Mortgage type
Average rate today
Average rate last week

15-year fixed
2.70%
2.84%

30-year fixed
3.87%
3.95%

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7/1 ARM
4.75%
5.09%

10/1 ARM
4.82%
4.98%

Rates from Ad Practitioners LLC.

Refinance rates have dropped across the board since last Thursday.

15-year fixed rates

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

A 15-year mortgage is more affordable in the long run than a mortgage with a longer term. Lenders offer lower rates for shorter terms, and you’ll pay off the loan relatively quickly.

Your monthly payments will be higher on a 15-year term than on a 30-year term, though. You’re paying off the same mortgage principal in half the time, so you’ll pay more each month.

30-year fixed rates

A 30-year fixed-rate mortgage locks in your rate for 30 years.

Lenders charge a higher rate on 30-year mortgages than on 15-year mortgages. For a long time, lenders also charged higher rates on 30-year fixed-rate mortgages than on adjustable-rate mortgages, but lately, fixed-rate mortgages have become the better deal.

Monthly payments are lower for 30-year terms than for 15-year terms, because you’re spreading payments out over a longer period of time.

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

Adjustable rates

With an adjustable-rate mortgage, your rate is locked in for the first few years. Then the rate changes periodically.

A 7/1 ARM keeps your rate the …read more

Source:: Business Insider

      

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