Mortgage rates are moving lower as the 10-year Treasury note fell over the past week. Economic news has weighed on the bond market, and today’s jobs report will be key in determining how mortgage rates end the week. Currently, the average 30-year fixed rate is still below 6%, according to Zillow 5.87%. The 15-year fixed interest rate is 5.34%.
Here are the current mortgage rates, according to the latest Zillow data:
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30 years fixed: 5.87%
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20 years fixed: 5.82%
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15 years fixed: 5.34%
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5/1 Arm: 5.83%
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7/1 Arm: 6.02%
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30 years VA: 5.36%
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15 years VA: 4.95%
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5/1 Virginia: 4.93%
Remember, these are national averages and rounded to the nearest percentile.
Learn how mortgage rates are determined.
According to the latest Zillow data, these are today’s mortgage refinance rates:
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30 years fixed: 5.99%
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20 years fixed: 5.83%
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15 years fixed: 5.47%
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5/1 Arm: 6.00%
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7/1 Arm: 5.91%
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30 years VA: 5.64%
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15 years VA: 5.22%
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5/1 Virginia: 5.10%
Again, the numbers provided are national averages, rounded to the nearest percentile. Mortgage refinance rates are usually higher than the rates you paid when you bought the home, although this isn’t always the case.
Use the mortgage calculator below to see how different interest rates and loan amounts will affect your monthly payments. It also shows how term length affects things.
You can bookmark the Yahoo Finance Mortgage Payment Calculator and keep it with you for future home purchases and loans. You even have the option to enter the cost of private mortgage insurance (PMI) and homeowners association dues (if applicable). These details can lead to a more accurate estimate of your monthly payment than a simple calculation of mortgage principal and interest.
There are two main advantages to a 30-year fixed mortgage: Your payments are lower, and your monthly payments are predictable.
The monthly payments on a 30-year fixed-rate mortgage are relatively lower because you have a longer repayment term compared to a 15-year mortgage. Your payments are predictable because, unlike an adjustable-rate mortgage (ARM), your interest rate doesn’t change from year to year. In most cases, the only thing that could affect your monthly payment is any changes to your homeowner’s insurance or property taxes.
The main disadvantages of the 30-year fixed mortgage rate are the short-term and long-term mortgage interest rates.
A 30-year term loan has a higher interest rate than a short-term term loan. Since the interest rate is higher and the term is longer, you will also pay more interest over the life of the loan.
The pros and cons of a 15-year fixed mortgage rate are essentially interchangeable with the pros and cons of a 30-year rate. Yes, your monthly payments are still predictable, but another advantage is the shorter term and lower interest rate. Not to mention, you’ll pay off your mortgage 15 years early. As a result, you could potentially save hundreds of thousands of dollars in interest over the course of your loan.
However, since you pay off the same amount in half the time, your monthly payments will be higher than if you chose the 30-year term.
An adjustable-rate mortgage locks the interest rate in for a predetermined period and then adjusts periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then rises or falls each year for the remaining 25 years.
The main advantage is that introductory rates are usually lower than a 30-year fixed rate, so your monthly repayments will be lower. (However, current average interest rates don’t reflect this, and fixed rates are actually lower, according to Zillow data. Talk to your lender before deciding between a fixed rate and an adjustable rate.)
With an ARM, you don’t know what your mortgage rate will be after the introductory rate period ends, so you run the risk of your rate rising later. This can end up costing more, and your monthly payments can be unpredictable from year to year.
But if you plan to move before the introductory period ends, you can take advantage of the benefits of low interest rates without risking future interest rate increases.
The current national average 30-year mortgage rate is 5.87%, according to Zillow. But keep in mind that averages may vary depending on where you live. For example, mortgage rates vary by state and may be higher if you buy a home in a city with a higher cost of living.
Mortgage rates fell recently when President Trump announced a number of proposals to increase housing affordability and lower mortgage rates. Then, when his push for Greenland stoked international tensions, shares moved higher. Still, rates are still more than half a point lower than a year ago, according to Zillow data.
In many ways, securing a lower mortgage refinance rate is similar to when you purchased your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Although your monthly mortgage payments will be higher, a short-term refinance will also get you a lower interest rate.
