Mortgage News Daily – Here are mortgage rates for June 15, 2021: Touchstone rate eases
While a closely followed mortgage rate fell, today rates were varied. While average 15-year fixed mortgage rates were the same, average interest rates on 30-year fixed mortgages slumped. At the same time, average rates for 5/1 adjustable-rate mortgages remained unchanged. Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years. If you plan to buy a home, now might be an excellent time to secure a fixed rate. Before you purchase a home, remember to take into account your personal needs and financial situation, and shop around for different lenders to find the right one for you.
Find current mortgage rates for today
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage is 3.07%, which is a decline of 1 basis point as seven days ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will often have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.35%, which is the same rate compared to a week ago. You’ll definitely have a bigger 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. However, as long as you can afford the monthly payments, there are several benefits to a 15-year loan. These include usually being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.
5/1 adjustable-rate mortgages
A 5/1 adjustable-rate mortgage has an average rate of 3.08%, the same rate from seven days ago. With an ARM mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, shifts in the market might cause your interest rate to increase after that time, as detailed in the terms of your loan. Because of this, an ARM might be a good option if you plan to sell or refinance your house before the rate changes. If not, shifts in the market may significantly increase your interest rate.
Mortgage rate trends
We use data collected by Fintech Zoom, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Average mortgage interest rates
|30-year jumbo mortgage rate||3.20%||3.24%||-0.04|
|30-year mortgage refinance rate||3.12%||3.12%||N/C|
Rates as of June 15, 2021.
How to shop for the best mortgage rate
To find a personalized mortgage rate, speak to your local mortgage broker or use an online mortgage service. Make sure to consider your current financial situation and your goals when looking for a mortgage. A range of factors — including your down payment, credit score, loan-to-value ratio and debt-to-income ratio — will all affect your mortgage rate. Having a higher credit score, a higher down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. Apart from the mortgage interest rate, other factors including closing costs, fees, discount points and taxes might also impact the cost of your home. Be sure to shop around with multiple lenders — for example, credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s the best fit for you.
How does the loan term impact my mortgage?
One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. For adjustable-rate mortgages, interest rates are the same for a certain number of years (typically five, seven or 10 years), then the rate changes annually based on the market interest rate.
When deciding between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to stay in your house. For those who plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. However you might get a better deal with an adjustable-rate mortgage if you only intend to keep your home for a few years. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Make sure to do your research and understand what’s most important to you when choosing a mortgage.