Mortgage rates mostly fell today. The average rate on 30-year fixed mortgages remained unchanged, while the average rate on 15-year mortgages and 5/1 ARMs fell.
Even though rates on mortgages fluctuate daily, they are currently around historic lows. Anyone interested in purchasing or refinancing will find it's a great time to lock in a rate. Be sure to shop around for the best mortgage rates.
30-year fixed mortgages
The average 30-year fixed-rate mortgage is 3.58%, unchanged from a week ago.
At the current average rate, you'll pay about $454 per month in principal and interest for every $100,000 you borrow.
15-year fixed mortgages
The average 15-year fixed-rate mortgage is 2.69%, down 2 basis points from a week ago.
There's a trade-off with short-term loans like 15-years. You'll pay more per month, but you'll also save thousands of dollars over the life of the loan.
For example, monthly payments on a 2.69%, 15-year loan would cost around $676 for every $100,000 borrowed.
Over a 15-year term, the total interest payments would be around $21,600. That's around $41,600 less than what you'd pay in interest with a 30-year loan at today's rate.
5/1 adjustable-rate mortgages
The average 5/1 ARM is 2.79%, down 14 basis points from a week ago.
Adjustable-rate mortgages like these are best for those who plan to sell or refinance within a short time period. When the loan adjusts, rates could be substantially higher.
For a $100,000 loan, monthly payments on a 5/1 ARM at 2.79% would cost about $410 for the initial 5 years. With rate caps of 2/2/5, payments could balloon to $719 per $100,000 at the final adjustment.
Job-related mortgage options
You're not always limited to standard mortgage options. In some cases, you might qualify for government programs and special lender offers that cater to individuals in certain jobs. And those loans can save you money.
You can find a variety of special loans including "Live Where You Work," programs, loans for first responders and teachers, loans for military personnel and veterans and loans for new doctors, lawyers and high-income professionals.
Check out these 4 types of mortgage deals that will save you money if you have the right job.
Where rates are headed
According to Bankrate's Rate Trend Index, 9% of panelists think mortgage rates will increase over the next week or so, while 18% think rates will fall and 73% think rates will remain the same.
You can use this mortgage calculator to estimate your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you'll pay over the life of the loan.