Mortgage interest rates today for Oct. 7, 2021: Rates decline – CNET
A variety of major mortgage rates receded today. The average interest rates for both 15-year fixed and 30-year fixed mortgages had a downswing. We also saw a downward slide in the average rate of 5/1 adjustable-rate mortgages.
Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years. Because of this, right now is a great time for prospective homebuyers to lock in a fixed rate. Before you buy a house, remember to think about your personal needs and financial situation, and speak with multiple lenders to find the right one for you.
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage is 3.13%, which is a decline of 5 basis points compared to 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 mortgage will often have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. 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.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.39%, which is a decrease of 6 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 higher monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 3.14%, a slide of 7 basis points from seven days ago.
With an adjustable-rate mortgage mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. But since the rate changes with the market rate, you may end up paying more after that time, as described in the terms of your loan.
For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage may be a good option. But if that’s not the case, you might be on the hook for a significantly higher interest rate if the market rates change.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:
Today’s mortgage interest rates
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||3.13%||3.18%||-0.05|
|15-year fixed rate||2.39%||2.45%||-0.06|
|30-year jumbo mortgage rate||2.79%||2.79%||N/C|
|30-year mortgage refinance rate||3.12%||3.16%||-0.04|
Rates accurate as of Oct. 7, 2021.
How to find personalized mortgage rates
To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. When looking into home mortgage rates, take into account your goals and current financial situation.
Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate.
Apart from the interest rate, factors including closing costs, fees, discount points and taxes might also affect the cost of your house. You should speak with a variety of lenders — like local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage loan for you.
How does the loan term impact my mortgage?
One important consideration when choosing a mortgage is the loan term, or payment schedule.
The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are the same for the life of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (most frequently five, seven or 10 years), then the rate adjusts annually based on the market rate.
When deciding between a fixed-rate and adjustable-rate mortgage, you should consider how long you plan to live in your home. Fixed-rate mortgages might be a better fit for people who plan on staying in a home for quite some time. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you aren’t planning to keep your new house for more than three to 10 years, however, an adjustable-rate mortgage may give you a better deal. There is no best loan term as a rule of thumb; it all depends on your goals and your current financial situation. Be sure to do your research and think about your own priorities when choosing a mortgage.
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October 7, 2021 at 02:06PM