Source: CNET —
Today a number of important mortgage rates declined. Let’s see how that could affect your home loan payments.
A few closely followed mortgage rates fell today. Average 15-year fixed mortgage rates climbed, while average 30-year fixed mortgage rates receded. For variable rates, the 5/1 adjustable-rate mortgage fell. Mortgage interest rates are never set in stone, but interest rates are at historic lows. If you plan to buy a house, now might be a great time to get a fixed rate. But as always, make sure to first take into account your personal goals and circumstances before purchasing a house, and shop around for a lender who can best meet your needs.
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage is 3.17%, which is a decline of 2 basis points from one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. 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.
