Mortgage rates showed no clear direction today, but one key rate climbed higher. The average for a 30-year fixed-rate mortgage moved up, but the average rate on a 15-year fixed receded. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages tapered off.
30-year fixed mortgages
The average rate you’ll pay for a 30-year fixed mortgage is 4.59 percent, up 2 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.76 percent.
At the current average rate, you’ll pay a combined $512.05 per month in principal and interest for every $100,000 you borrow. That’s an extra $1.20 compared with last week.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and find out how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 3.82 percent, down 10 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $731 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.
The average rate on a 5/1 ARM is 4.05 percent, ticking down 6 basis points over the last week.
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, and thereafter.
Monthly payments on a 5/1 ARM at 4.05 percent would cost about $480 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are right now? See local mortgage rates.
|30-year fixed jumbo||4.48%||-0.05||4.53%|
|30-year fixed refinance||4.64%||+0.03||4.61%|
Last updated: December 24, 2018.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”