Several benchmark mortgage rates trended down today. The average for a 30-year fixed-rate mortgage were down, but the average rate on a 15-year fixed ticked up. Meanwhile, the average rate on 5/1 adjustable-rate mortgages decreased.
Mortgage rates change daily, but they remain low by historical standards. If youâ€™re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just make sure youâ€™ve looked around for the best rate first.
30-year fixed mortgages
The average rate youâ€™ll pay for a 30-year fixed mortgage is 3.75 percent, a decrease of 1 basis point over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.84 percent.
At the current average rate, youâ€™ll pay a combined $463.12 per month in principal and interest for every $100,000 you borrow. Thatâ€™s lower by $0.56 than it would have been last week.
You can use Bankrateâ€™s mortgage calculator to estimate 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 2.97 percent, up 1 basis point over the last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $689 per $100,000 borrowed. Thatâ€™s clearly 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 come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.
The average rate on a 5/1 ARM is 3.13 percent, down 1 basis point since the same time 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 3.13 percent would cost about $429 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars 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: August 21, 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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