Several closely watched mortgage rates ticked downward today. The average for a 30-year fixed-rate mortgage fell, but the average rate on a 15-year fixed were higher. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages sunk lower.
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 be a great time to lock in a rate. Just make sure you shop around first.
30-year fixed mortgages
The average 30-year fixed-mortgage rate is 3.53 percent, down 3 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.77 percent.
At the current average rate, you’ll pay a combined $450.72 per month in principal and interest for every $100,000 you borrow. That’s lower by $1.68 than it would have been last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see what the effects of making extra payments would be. 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 3.10 percent, up 1 basis point over the last week.
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 quickly.
The average rate on a 5/1 adjustable rate mortgageis 3.32 percent, down 10 basis points since the same time last week.
These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.32 percent would cost about $439 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 at this moment? Lenders across the nation 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||3.65%||3.69%||-0.04|
|30-year fixed refinance||3.58%||3.64%||-0.06|
Rates as of May 5, 2020.
Searching for the right mortgage lender? See Bankrate’s lender reviews here.
|Loan Type||Purchase Rates||Refinance Rates|
|The table above links out to loan-specific pagesto help our readers learn more about rates by mortgage type.|
|30-Year Loan||30-Year Mortgage Rates||30-Year Mortgage Refinance Rates|
|20-Year Loan||Current 20 Year Mortgage Rates||20-Year Refi Rates|
|15-Year Loan||15-Year Mortgage Rates||15-Year Mortgage Refinance Rates|
|10-Year Loan||Current 10 Year Mortgage Rates||10-Year Refi Interest Rates|
|FHA Loan||Current FHA Mortgage Rates||FHA Refinance Rates|
|VA Loan||VA Loan Rates||Current VA Refinance Rates|
|ARM Loan||ARM Loan Rates||ARM Refi Mortage Rates|
|Jumbo Loan||Jumbo Loan Rates||Jumbo Loan 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.”