Average national mortgage rates are in danger of falling below 6%. According to Zillow, the average 30-year fixed mortgage rate is 6.01%and the 15-year fixed rate is 5.47%. Some major lenders are already advertising 30-year fixed rates well below 6%.
Here are the current mortgage rates, according to the latest Zillow data:
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Fixed over 30 years: 6.01%
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Fixed over 20 years: 5.93%
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Fixed over 15 years: 5.47%
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ARM 5/1: 6.11%
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ARM 7/1: 6.34%
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VA over 30 years: 5.59%
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VA over 15 years: 5.19%
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5/1 VA: 5.24%
Remember, these are national averages rounded to the nearest hundredth.
Here are today’s mortgage refinance rates, according to the latest data from Zillow:
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Fixed over 30 years: 6.09%
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Fixed over 20 years: 5.80%
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Fixed over 15 years: 5.60%
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ARM 5/1: 6.35%
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ARM 7/1: 6.77%
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VA over 30 years: 5.54%
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VA over 15 years: 5.35%
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5/1 VA: 5.39%
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.
Use the mortgage calculator below to see the impact of different mortgage terms and interest rates on your monthly payments.
You can bookmark the Yahoo Finance Mortgage Payment Calculator and keep it handy for future use. It also takes into account factors like property taxes and home insurance to determine your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you simply looked at the principal and interest on your mortgage.
The average 30-year mortgage rate today is 6.01%. The 30-year term is the most popular type of mortgage loan because by spreading your payments over 360 months, your monthly payment is lower than that of a shorter term loan.
The average 15-year mortgage rate today is 5.47%. When deciding between a 15- or 30-year mortgage, consider your short-term and long-term goals.
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 means 15 fewer years of interest accrual. But the trade-off is that your monthly payment will be higher since you repay the same amount in half the time.
Let’s say you get a $300,000 mortgage. With a term of 30 years and a rate of 6.01%, your monthly payment for principal and interest would be approximately $1,800and you would pay $348,209 in interest over the life of your loan – on top of the initial $300,000.
If you get the same $300,000 mortgage with a term of 15 years and a rate of 5.47%, your monthly payment would increase to $2,446. But you would only pay $140,366 in interest over the years.
With a fixed rate mortgage, your rate is locked in for the duration of your loan. However, you will get a new rate if you refinance your mortgage.
An adjustable rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will increase or decrease based on several factors, like economic conditions and the maximum amount your rate can vary based on your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.
Adjustable rates generally start at a lower level than fixed rates, but once the initial rate lock-in period ends, your rate may increase. However, in recent times, some fixed rates have become lower than adjustable rates. Talk to your lender about their rates before choosing one or the other.
Mortgage lenders generally give the lowest mortgage rates to people with higher down payments, excellent or 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.
Waiting for rates to drop probably isn’t the best way to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.
To find the best mortgage lender for your situation, seek mortgage pre-approval from three or four companies. Just make sure you apply to each of them within a short period of time – this will give you the most accurate comparisons and will have the least impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look at the annual mortgage rate (APR) – it takes into account the interest rate, discount points and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing. This is probably the most important number to consider when comparing mortgage lenders.
According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.01% and the average 15-year mortgage rate is 5.47%. But these are national averages, so your area’s average might be different. Averages are generally higher in more expensive parts of the United States and lower in less expensive areas.
The average 30-year fixed mortgage rate is currently 6.01%, according to Zillow. However, you could get an even better rate with an excellent credit score, a large down payment and a low debt-to-income (DTI) ratio.
Not much. According to its December forecast, the MBA expects the 30-year mortgage rate to be near 6.4% through 2026. Fannie Mae also predicts a 30-year rate above 6% through next year, but dropping to 5.9% in the fourth quarter of 2026.
