Mortgage rates have been volatile lately, but remain well below where they were a year ago. According to Zillow, the average 30-year fixed mortgage rate is 6.11%while the 15-year fixed rate is 5.58%.
With rates so good, now could be a good time to buy a home.
Here are the current mortgage rates, according to the latest Zillow data:
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Fixed over 30 years: 6.11%
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Fixed over 20 years: 5.98%
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15 years fixed: 5.58%
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ARM 5/1: 6.58%
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ARM 7/1: 6.69%
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VA over 30 years: 5.61%
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VA over 15 years: 5.13%
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5/1 VA: 5.69%
Remember, these are national averages rounded to the nearest hundredth.
Here are 8 strategies for getting the lowest mortgage rates.
Here are today’s mortgage refinance rates, according to the latest data from Zillow:
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Fixed over 30 years: 6.29%
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Fixed over 20 years: 6.11%
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15 years fixed: 5.70%
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ARM 5/1: 6.83%
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ARM 7/1: 7.26%
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VA over 30 years: 5.97%
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VA over 15 years: 5.80%
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5/1 VA: 5.55%
Again, the figures provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than home purchase rates, although this is not always the case.
MORE: Discover the best mortgage refinancing lenders right now.
You can use Yahoo Finance’s free mortgage calculator to test how different terms and rates will affect your monthly payment. Our calculator takes factors like property taxes and home insurance into account when estimating your monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at the principal and interest on your mortgage.
But if you want a quick and easy way to see how current rates impact your monthly mortgage payment, try the calculator below:
The current average 30-year mortgage rate is 6.11%. The 30-year term is the most popular type of mortgage loan because by spreading your payments over 360 months, your monthly payment is relatively low.
If you had a $300,000 mortgage with a 30-year term and a rate of 6.11%, your monthly payment for principal and interest would be approximately $1,820, and you would pay $355,172 in interest over the life of your loan – on top of the initial $300,000.
The average 15-year mortgage rate today is 5.58%. There are several factors to consider when deciding between a 15-year and 30-year mortgage.
A 15-year mortgage has a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, which is 15 fewer years of interest compounding.
However, your monthly payments will be higher because you are reducing the same debt payment in half the time.
If you get the same $300,000 mortgage with a 15-year term and a rate of 5.58%, your monthly payment would increase to $2,464. But you would only pay $143,521 in interest over the years.
With an adjustable rate mortgage, your rate is locked in for a set period of time and then increases or decreases periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then changes each year.
Adjustable rates generally start lower than fixed rates, but you run the risk that your rate will increase once the introductory rate lock-in period ends. But an ARM could be a good solution if you plan to sell the house before your rate lock-in period ends — that way, you’ll pay a lower rate without worrying about it increasing later.
Lately, ARM rates have sometimes been similar to or higher than fixed rates. Before committing to a fixed or variable mortgage rate, be sure to shop around for the best lenders and rates. Some will offer more competitive adjustable rates than others.
Mortgage lenders generally give the lowest mortgage rates to people with higher down payments, excellent credit scores and a low debt-to-income ratio. So if you want a lower rate, try saving more, improving your credit score, or paying off some debt before you start buying a home.
You can also buy back your interest rate permanently by paying discount points at closing. A temporary interest rate buydown is also an option – for example, you might get a rate of 6.25% with a 2-for-1 buydown. Your rate would start at 4.25% for the first year, increase to 5.25% for the second year, and then settle at 6.25% for the remainder of your term.
Just consider whether these buyouts are worth the extra money at closing. Consider whether you’ll stay in the home long enough for the amount you save with a lower rate to offset the cost of reducing your rate before making your decision.
Here are the interest rates for some of the most popular mortgage terms: According to Zillow data, the national average 30-year fixed rate is 6.11%, the 15-year fixed rate is 5.58%, and the 5/1 ARM rate is 6.58%.
A normal mortgage rate on a 30-year fixed loan is 6.11%. However, keep in mind that this is the national average based on Zillow data. The average may be higher or lower depending on where you live in the United States.
Mortgage rates are not expected to fall significantly until the end of the year while economists monitor the government shutdown, inflation, tariffs and the Federal Reserve.
