Mortgage rates have bounced back from recent lows, but remain below 6%. According to Zillow, the average is a 30-year fixed rate 5.93%. Meanwhile, there is a 15-year fixed home loan rate 5.40%. Zillow collects rates from its lenders offered in the marketplace.
Here are the current mortgage rates, according to the latest Zillow data:
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30-year fixed: 5.93%
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20-year fixed: 5.86%
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15 years fixed: 5.40%
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5/1 ARM: 6.26%
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7/1 ARM: 6.43%
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30-year VA: 5.50%
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15-year VA: 5.10%
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5/1 VA: 5.11%
Remember, these are national averages and are rounded to the nearest hundred.
Learn about how mortgage rates are determined.
Here are today’s mortgage refinance rates, according to the latest Zillow data:
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30-year fixed: 6.00%
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20-year fixed: 5.88%
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15 years fixed: 5.50%
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5/1 ARM: 6.42%
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7/1 ARM: 6.61%
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30-year VA: 5.52%
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15-year VA: 5.14%
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5/1 VA: 5.39%
Again, the numbers provided are national averages rounded to the nearest hundred. Mortgage refinance rates are often higher than rates when you buy a home, although this is not always the case.
Use the mortgage calculator below to see how different interest rates and loan amounts affect your monthly payments. It also shows how word length plays into things.
You can bookmark the Yahoo Finance mortgage payment calculator and use it for future reference as you shop for homes and lenders. You also have the option to enter costs for private mortgage insurance (PMI) and homeowners association dues if they apply to you. These details result in a more accurate monthly payment estimate than when you calculate your mortgage principal and interest.
A 30-year fixed mortgage has two main advantages: your payments are lower, and your monthly payments are predictable.
A 30-year fixed-rate mortgage has relatively low monthly payments because you’re spreading your payments over a longer period than a 15-year mortgage. Your payments are predictable because, unlike an adjustable-rate mortgage (ARM), your rate won’t change from year to year. Over the years, the only things that can affect your monthly payment are any changes in your homeowner’s insurance or property taxes.
The main disadvantage of 30-year fixed mortgage rates is mortgage interest, both short and long term.
A 30-year fixed-term loan comes with a higher rate than a shorter fixed-term loan. You’ll pay more in interest over the life of your loan due to both the higher rate and longer term.
The pros and cons of 15-year fixed mortgage rates are essentially interchangeable with 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, you’ll pay off your mortgage 15 years sooner. So you’ll potentially save hundreds of thousands of dollars in interest over the life of your loan.
However, since you’re paying the same amount half the time, your monthly payments will be higher than if you chose a 30-year term.
Adjustable-rate mortgages lock in your rate for a predetermined period of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once per year for the remaining 25 years.
The main advantage is that the introductory rate is usually lower than what you would get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don’t reflect this, though — fixed rates are actually lower, according to Zillow data. Talk to your lender before deciding between a fixed or adjustable rate.)
With an ARM, you don’t know what mortgage rates will be after the intro-rate period ends, so you risk having your rate go up later. This can ultimately end up costing more, and your monthly payments are unpredictable from year to year.
But if you plan to move before the intro-rate period ends, you can take advantage of lower rates without risking rate increases down the road.
The national average 30-year mortgage rate is now 5.93%, according to Zillow. But keep in mind that averages may vary depending on where you live. For example, if you are buying in a city with a high cost of living, rates may be higher.
Recently, mortgage rates plunged when President Trump announced some proposals to boost home affordability and lower mortgage rates. They have moved up slightly from recent lows. However, 30-year mortgage rates remain a half-point or more below where they were a year ago, according to Freddie Mac data.
In many ways, securing a low mortgage refinance rate is the same as when you bought your own home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing in the short term also gives you a lower rate, although your monthly mortgage payment will be higher.
