Mortgage rates were mixed today, but one key rate floated higher. The average for a 30-year fixed-rate mortgage climbed, but the average rate on a 15-year fixed was down. The average rate on 5/1 adjustable-rate mortgages, meanwhile, dropped.
Rates for mortgages are constantly changing, but, overall, they are very low by historical standards. If youâ€™re in the market for a mortgage, it may make sense to go ahead and lock if you see a rate you like. Just make sure you shop around first.
30-year fixed mortgages
The average rate youâ€™ll pay for a 30-year fixed mortgage is 3.76 percent, an increase of 3 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.80 percent.
At the current average rate, youâ€™ll pay principal and interest of $463.68 for every $100,000 you borrow. Thatâ€™s an additional $1.70 per $100,000 compared to last week.
You can use Bankrateâ€™s mortgage calculator to figure out your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest youâ€™ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.98 percent, down 1 basis point from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $690 per $100,000 borrowed. Thatâ€™s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: Youâ€™ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 ARM is 3.11 percent, ticking down 2 basis points over the last week.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.11 percent would cost about $428 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loanâ€™s terms.
Where rates are headed
To see where Bankrateâ€™s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are right now? See local mortgage rates.
Last updated: September 5, 2017.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile â€” they help consumers see the movement of rates day to day. The institutions included in the â€œBankrate.com Site Averageâ€� tables will be different from one day to the next, depending on which institutionsâ€™ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see â€œUnderstanding Bankrateâ€™s Rate Averages.â€�
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