Mortgage rates today are slipping. Here’s what it means for your mortgage loan payments

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A few key mortgage rates have come down today, including the average interest rates for 15-year and 30-year fixed mortgages. We have also seen a decrease in the average rate for 5/1 adjustable rate mortgages. While mortgage rates are always on the move, they are still at an all-time low. If you are looking to get a fixed rate, now is a great time to buy a home. But as always, be sure to consider your personal goals and circumstances first before purchasing a home, and shop around to find a lender who can best meet your needs.

30-year fixed rate mortgages

The 30-year fixed mortgage rate averages 3.19%, down 6 basis points from seven days ago. (One basis point equals 0.01%.) The most commonly used loan term is a 30-year fixed mortgage. A 30 year fixed rate mortgage will usually have a smaller monthly payment than a 15 year mortgage, but usually a higher interest rate. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to keep your monthly payment down.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.50%, down 2 basis points from seven days ago. You will likely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15 year loan will usually be the best deal, if you are able to afford the monthly payments. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 variable rate mortgage has an average rate of 3.18%, down 6 basis points from the same period last week. With an adjustable rate mortgage, you will usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, changes in the market may cause your interest rate to increase after this period, as stated in your loan terms. If you plan to sell or refinance your home before rates change, an ARM might be right for you. Otherwise, changes in the market could dramatically increase your interest rate.

Mortgage rate trends

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders in the United States:

Mortgage interest rates today

term of the loan Daily rate Last week Change
30 year mortgage rate 3.19% 3.25% -0.06
15-year fixed rate 2.50% 2.52% -0.02
Giant 30-year mortgage rate 2.74% 2.74% NC
30-year mortgage refinancing rate 3.16% 3.21% -0.05

Prices exact as of December 23, 2021.

How to find the best mortgage rates

When you’re ready to apply for a loan, you can connect with a local mortgage broker or search online. When looking at mortgage rates, consider your goals and your current financial situation. A range of factors, including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio, will all affect the interest rate on your mortgage. Typically, you want a good credit score, higher down payment, lower DTI, and lower LTV to get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home – be sure to consider other costs like fees, closing costs, taxes, and points of call as well. Be sure to shop around with multiple lenders, such as credit unions and online lenders, in addition to local and state banks, to get the mortgage that’s best for you.

How does the term of the loan affect my mortgage?

An important thing to keep in mind when choosing a mortgage loan is the length of the loan or the payment schedule. The most commonly offered loan terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are divided into fixed rate and variable rate mortgages. For fixed rate mortgages, interest rates are stable throughout the life of the loan. Unlike a fixed rate mortgage, the interest rates on a variable rate mortgage are only stable for a certain period of time (usually five, seven, or 10 years). After that, the rate changes every year based on the current interest rate in the market.

One thing to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to live in your home. If you plan to stay in a new home for the long term, fixed rate mortgages may be the best option. While variable rate mortgages may have lower interest rates initially, fixed rate mortgages are more stable over the long term. However, you might get a better deal with an adjustable rate mortgage if you plan to only keep your home for a few years. The best loan term depends entirely on the individual’s circumstances and goals, so be sure to consider what’s important to you when choosing a mortgage.

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