Mortgage rates 6/16/2021: rates are getting flat


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A large number of major mortgage rates remained unchanged. While the average interest rate fell on 15-year fixed-rate mortgages, the average interest rate for a 30-year fixed-rate mortgage remained unchanged. The average rate of the most common type of adjustable rate mortgage, the 5/1 variable rate mortgage, remained unchanged. Although mortgage rates are dynamic, they are at an all-time low. For this reason, now is an ideal time for potential homebuyers to secure a fixed price. However, as always, before buying a home, think about your personal goals and circumstances first and find a lender who can best meet your needs.

Find the current mortgage rates for today

30-year fixed-rate mortgages

For a 30-year fixed-rate mortgage, you pay an average of 3.07%, which is unchanged from the previous week. (One basis point is 0.01%.) The most common repayment term is a 30-year fixed-rate mortgage. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year – but often a higher interest rate. Although you’ll pay more interest over time – you pay off your loan over a longer period of time – if you’re looking for a lower monthly payment, a 30-year fixed-rate mortgage can be a good option.

15-year fixed-rate mortgages

The average rate on a 15-year fixed-rate mortgage is 2.35%, down 1 basis point from seven days. With a 15-year fixed-rate mortgage, you definitely have a higher monthly rate than with a 30-year fixed-rate mortgage, even if the interest rate and the loan amount are the same. However, if you can afford the monthly payments, a 15 year loan offers several advantages. This usually includes the option of getting a lower interest rate, paying off your mortgage earlier, and paying less total interest in the long run.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.08%, the same rate seven days ago. With a 5/1 variable rate mortgage, you will typically get a lower rate for the first five years of the mortgage (compared to a 30 year fixed rate mortgage). However, since the interest rate changes with the market rate, you may be able to pay more after that time, as detailed in the terms of your loan. Because of this, an ARM could be a great option if you are planning to sell or refinance your home before the interest rate changes. However, if it doesn’t, you may be looking for a much higher rate if market rates change.

Mortgage rate trends

We use the interest rates collected by Bankrate, owned by the same parent company as CNET, to keep track of daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:

The current mortgage rates

Repayment term Daily rate Last week change
30 year mortgage rate 3.07% 3.07% opener
15 years fixed rate 2.35% 2.36% -0.01
30 year jumbo mortgage rate 3.20% 3.24% -0.04
30 year mortgage refinancing rate 3.12% 3.13% -0.01

Prices valid from June 16, 2021.

How to Find Personalized Mortgage Rates

When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. When looking for a mortgage, think about your current finances and your goals. A number of factors – including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio – all affect your mortgage rate. A higher credit score, larger down payment, lower DTI, lower LTV, or a combination of these factors can help you get a lower interest rate. In addition to the mortgage rate, additional costs such as closing costs, fees, discount points, and taxes can also be included in the cost of your home. Make sure to check out multiple lenders – including credit unions and online lenders, as well as local and national banks – to get a mortgage loan that is best for you.

What is a good repayment term?

One important thing to consider when choosing a mortgage is the repayment term or payment schedule. The most common loan periods are 15 years and 30 years, but there are also 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and adjustable rate mortgages. With fixed-rate mortgages, the interest rates are the same throughout the life of the loan. With variable rate mortgages, the interest rates are stable for a certain number of years (usually five, seven or 10 years), then the interest rate fluctuates annually based on the current interest rate in the market.

When deciding between a fixed rate mortgage and an adjustable rate mortgage, consider how long you want to stay in your home. If you’re looking to stay in a new home for the long term, fixed-rate mortgages may be a better option. Fixed rate mortgages offer more stability over time compared to adjustable rate mortgages, but adjustable rate mortgages may offer lower interest rates upfront. However, if you don’t plan on keeping your new home for more than three to ten years, a variable rate mortgage might be a better deal for you. The best repayment term depends entirely on your specific situation and goals. Therefore, when choosing a mortgage, consider what is important to you.


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