Good News For US Homebuyers About Mortgage Rates

A variety of notable mortgage rates decreased today, including average rates for both 15-year fixed and 30-year fixed mortgages.

At the same time, average rates for 5/1 adjustable-rate mortgages also went down. Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years.

Those who plan to buy a house, consider now as an ideal time to secure a fixed rate. But as always, investors have to make sure to first think about personal goals and circumstances before buying a house, and shop around for a lender who can best meet their needs.

The average interest rate for a standard 30-year fixed mortgage is 3.19%, which is a decrease of 6 basis points from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term.

A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one, but usually a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

The average rate for a 15-year, fixed mortgage is 2.50%, which is a decrease of 2 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment.

However, as long as one can afford the monthly payments, there are several benefits to a 15-year loan. Those who consider buying will typically get a lower interest rate, and they will pay less interest in total because you’re paying off mortgage much quicker.