Multiple closely watched mortgage rates trended down today. The average rates on 30-year fixed and 15-year fixed mortgages both were down. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also trended down.
Rates for mortgages are in a constant state of flux, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just make sure you’ve looked around for the best rate first.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.56 percent, a decrease of 17 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.98 percent.
At the current average rate, you’ll pay principal and interest of $452.40 for every $100,000 you borrow. That’s $9.58 lower, compared with last week.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be 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.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 3.09 percent, down 14 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $695 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 rapidly.
The average rate on a 5/1 ARM is 3.37 percent, down 12 basis points over the last 7 days.
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 3.37 percent would cost about $442 for each $100,000 borrowed over the initial five years, but could increase 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? Lenders nationwide respond to Bankrateâ€™s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:
|30-year fixed jumbo||3.69%||3.86%||-0.17|
|30-year fixed refinance||3.69%||3.84%||-0.15|
Rates as of April 16, 2020.
|Loan Type||Purchase Rates||Refinance Rates|
|The indexabove links out to loan-specific content to help our readerslearn more about rates by product type.|
|30-Year Loan||30-Year Mortgage Rates||Current 30 Year Refinance Rates|
|20-Year Loan||20-Year Mortgage Rates||20-Year Mortgage Refinance Rates|
|15-Year Loan||15 Year Fixed Mortgage Rates||Current 15-Year Refinance Rates|
|10-Year Loan||10-Year Mortgage Interest Rates||Current 10-Year Refinance Rates|
|FHA Loan||FHA Mortgage Interest Rates||FHA Refinance Interest Rates|
|VA Loan||VA Mortgage Interest Rates||VA Refi Interest Rates|
|ARM Loan||Adjustable Rate Mortgage Rates||Current ARM Refinance Rates|
|Jumbo Loan||Jumbo Loan Interest Rates||Jumbo Mortgage Refinance Rates|
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.”