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Most rates go up while ARM goes down

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Mortgage rates today are up for fixed rate loans, but the ARM 5/1 rate has gone down. Here’s what they look like now:

The data source: The Ascent National Mortgage Interest Rate Tracker.

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30-year mortgage rates

The 30-year average mortgage rate today stands at 2.898%, up 0.031% from yesterday. At today’s rate, you will pay principal and interest of $ 416.44 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.643%, up 0.027% from yesterday. At today’s rate, you’ll pay principal and interest of $ 536.75 for every $ 100,000 you borrow. Although your monthly payment increases by $ 120.31 with a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 21,101.07 in interest over your repayment period for every $ 100,000 you borrow.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.280%, up 0.019% from yesterday. At today’s rate, you’ll pay principal and interest of $ 656.48 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 240.04 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 31,753.85 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average 5/1 ARM rate is 2.779%, down 0.041% from yesterday. With an ARM 5/1, you lock in your starting interest rate for five years, after which it can adjust once a year. Now your rate could go down over time, but it could go up too, so when you get an adjustable rate mortgage, you take that risk.

For the first time in months, the ARM 5/1 has dropped to a level below that of the 30-year fixed mortgage. However, the rate difference is not that large and the discount you will get with an ARM 5/1 is minimal. You can also lock in a 20 or 15 year mortgage if you can swing the higher monthly payment, as these two products are still available at a lower rate than the 5/1 ARM.

Should I lock in my mortgage rate now?

A mortgage rate freeze guarantees you a specific interest rate for a certain period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You’ll usually pay a fee to lock in your mortgage rate, but that way you’re protected if rates go up by the time your mortgage closes.

If you plan to close your home in the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are still very low. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your loan if rates drop before your mortgage closes, and while rates today are quite competitive, we don’t know if rates will go up. or will decrease over the next few months. As such, it is beneficial to:

  • LOCK if closing 7 days
  • LOCK if the closure 15 days
  • LOCK if closing 30 days
  • FLOAT if closing 45 days
  • FLOAT if closing 60 days

If you’re ready to apply for a mortgage, collect offers from different lenders so you can compare your choices. Each lender sets their own rate and closing costs, so you might find that one charges a much higher fee than another to finalize a loan. Of course, you shouldn’t hesitate to negotiate your loan closing costs, as some of these fees can be flexible, but the main thing is to look at different offers before making a decision.

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