On Monday, March 29, average mortgage rates fell for most loans. Homeowners should shop carefully for a home loan. While rates were mostly down today, they broke recent all-time lows. However, they remain competitive, especially for qualified borrowers.
Check out today’s average mortgage rates to get an idea of what rates you can expect:
6 simple tips to get a 1.75% mortgage rate
Secure access to The Ascent’s free guide on how to get the lowest mortgage rate when buying your new home or refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.
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30-year mortgage rates
The 30-year average mortgage rate today stands at 3.296%, down 0.01% from Friday’s average of 3.306%. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 438 for every $ 100,000 borrowed. The total interest charge would be $ 57,585 per $ 100,000 borrowed over the term of the loan.
20-year mortgage rates
The 20-year average mortgage rate today is 3.005%, up 0.009% from Friday’s average of 2.996%. A mortgage at the current average interest rate would cost you $ 555 per $ 100,000 borrowed. The total interest charge would be $ 33,164 per $ 100,000 of mortgage debt over the term of the loan.
The interest charges are lower over time on this loan than with the 30 year fixed rate option due to the shortened repayment time. You don’t pay interest for that long. Of course, because you are making a lot less payments, each one is higher.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.576%, down 0.007% from Friday’s average of 2.583%. At today’s average rate, the monthly principal and interest payment would be $ 670 per $ 100,000 of mortgage debt. During the entire repayment period of your loan, you would pay a total interest charge of $ 20,667 for every $ 100,000 borrowed.
With an even shorter repayment term, as well as a much lower rate, the 15-year loan is the most affordable over time. However, because you have a very short time to repay your loan, you have to pay a lot more each month than with the 30-year loan.
The average 5/1 ARM rate is 3.102%, down 0.031% from Friday’s average of 3.133%. Although this rate is lower than the 30 year fixed rate loan, it is not guaranteed for the life of the loan. It may start to adjust after five years and may adjust higher, resulting in increased monthly payments. You need to weigh the risk of rising rates versus having your starting rate lower when deciding whether an ARM makes sense to you.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You will usually pay a fee to lock in your mortgage rate, but this way you are protected in the event of a rate hike before your mortgage closes.
If you plan to close your home in the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are very competitive. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your mortgage if rates drop before you close, and while rates today are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it is beneficial to:
- LOCK if closing 7 days
- LOCK if closing 15 days
- LOCK if closing 30 days
- FLOAT if closing 45 days
- FLOAT if closing 60 days
To find out what rates are available to you, compare the rates of at least three of the top mortgage lenders before you lock in.