Mortgage rates vary from country to country, but some borrowers get the lowest rates for a long time. According to Zillow data, the current average 30-year fixed mortgage rate is 6.00%. The 15-year fixed rate is 5.50%. Last Wednesday, Freddie Mac reported a 6.23% 30-year rate. That tells you how important it is to shop around for multiple lenders.
Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 6.00%
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20 years fixed: 5.86%
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15 years fixed: 5.50%
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5/1 ARM: 6.11%
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7/1 ARM: 6.15%
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VA for 30 years: 5.44%
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VA for 15 years: 5.10%
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5/1 VA: 5.11%
Remember, these are national averages and rounded to the nearest hundredth.
These are the current mortgage refinance rates, according to the latest Zillow data:
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30 years fixed: 6.14%
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20 years fixed: 6.05%
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15 years fixed: 5.60%
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5/1 ARM: 6.55%
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7/1 ARM: 6.72%
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VA for 30 years: 5.57%
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VA for 15 years: 5.18%
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5/1 VA: 5.04%
Again, the numbers provided are national averages rounded to the nearest hundredth. Refinance mortgage rates are often higher than rates when you buy a home, although that’s not always the case.
Find out if now is a good time to refinance your mortgage.
Use the mortgage calculator below to see how different mortgage terms and interest rates will affect your monthly payments.
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You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use. It also considers factors such as property taxes and homeowner’s insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you were just looking at the mortgage principal and interest.
The average 30-year mortgage rate today is 6.00%. A 30-year term is the most popular type of mortgage because by spreading your payments over 360 months, your monthly payment is lower than with a shorter-term loan.
The average 15-year mortgage rate is 5.50% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.
A 15-year mortgage comes with 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, and that means 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher because you pay the same amount in half the time.
Let’s say you get a $300,000 mortgage. With a 30-year term and a rate of 6.00%, your monthly principal and interest payment would be approx. $1,799and you would pay $347,515 interest over the life of your loan – on top of the original $300,000.
If you get the same $300,000 mortgage with a 15-year term and a rate of 5.50%, your monthly payment will jump to $2,451. But you would only pay $141,225 in interest over the years.
With a fixed rate mortgage, your rate is locked in for the life of the 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. The rate will then go up or down based on several factors, such as the economy and the maximum amount your rate can change under the 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 usually start lower than fixed rates, but once the initial rate lock period ends, your rate may increase. Lately, however, some fixed rates have started lower than adjustable rates. Talk to your lender about their rates before choosing one or the other.
Mortgage lenders typically give the lowest mortgage rates to people with larger down payments, excellent or excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try to save more, improve your credit score, or pay off some debt before you start buying homes.
Waiting for rates to drop is probably not 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, apply for mortgage pre-approval at three or four companies. Just make sure you apply for all of these within a short time frame – this will give you the most accurate comparisons and have less of an impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look at your mortgage’s annual percentage rate (APR) – this includes the interest rate, any discount points and fees. The APR, which is also expressed as a percentage, reflects the actual annual cost of borrowing the money. This is probably the most important number to consider when comparing mortgage lenders.
According to Zillow, the national average 30-year home purchase mortgage rate is 6.00% and the average 15-year mortgage rate is 5.50%. But these are national averages, so the average in your area might be different. Averages are typically higher in expensive parts of the US and lower in less expensive areas.
The average 30-year fixed mortgage rate is 6.00% right now, according to Zillow. However, you may be able to get an even better rate with an excellent credit score, a sizeable down payment, and a low debt-to-income ratio (DTI).
Mortgage rates have fallen recently, but are not expected to drop sharply in the near future.