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Some of the major mortgage rates increased today.
There was an increase in the average interest rates for both 15-year fixed and 30-year fixed mortgages.
There is an upward trend in the average rate of 5/1 adjustable-rate mortgages as well.
Even though we say the mortgage rates have moved upwards, they are comparatively quite low right now.
If you are looking to lock in a fixed rate, this is an ideal time to finance a home.
But make sure to check your personal goals and financial condition before taking the leap. Shop around to get the best rate.
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage increased by 1 basis point compared to last week which was 3.09% and is now sitting at 3.10%.
A 30-year fixed-rate mortgage is the most frequently used loan term.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage like that of 30 years fixed has increased by 1 basis point compared to last week was 2.37%, and is now sitting at 2.38%.
A 15-year fixed mortgage compared to a 30-year fixed mortgage, with the same loan value and interest rate needs a larger monthly payment.
But it comes with several benefits if you can afford the monthly payments.
You’ll get a lower interest rate, and you’ll be able to pay off your mortgage much quicker.
5/1 adjustable-rate mortgages
The average rate of 5/1 adjustable-rate mortgage is 3.12%, an increase of 2 basis points compared to last week when the rates were 3.10%.
You’ll get a lower interest rate with an adjustable-rate mortgage than a 30-year fixed mortgage for the first five years.
But after the initial period you may end up paying more, depending on the terms of your loan and the rate adjusts with the market rate.
An adjustable-rate mortgage could be a good option if you plan to sell or refinance your house before the rate changes, if not then you could be paying a huge interest rate if the market rates shift.
30 year Jumbo mortgage rate
The average rate for a 30-year, jumbo mortgage too has increased by 1 basis point compared to last week when it was 3.14% and is now sitting at 3.15%.
30-year mortgage refinance rate
The average rate for a 30-year mortgage refinances rate rose by 1 basis point in comparison to a week ago, when it was 3.13%, and is now sitting at 3.14%.
Bottom line
Speak to your local mortgage lender or use the online mortgage service to find a personalized mortgage rate.
Your credit score, down payment, loan-to-value ratio, and debt-to-income ratio are the factors that determine that can affect the interest rate you may qualify for.
When you have a higher credit score, the possibility of making a larger down payment, a lower DTI, and a lower LTV can get a lower interest rate.
Along with the interest rate, there are other factors that affect the cost of your home.
Be sure to consider additional expenses in the form of fees, closing costs, taxes, and discount points.
Do not forget to comparison shop with multiple lenders to get a mortgage loan that’s best for you.
Reference Source: CNET
