Current Mortgage Rates – May 17, 2021: Rates Rise

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How are mortgage rates changing by mid-May? Find out here.

As we approach the second half of May, on average mortgage rates got up a bit today. If you are looking to get a mortgage, it is important to look at how the national average rates are developing. Although your rate is personalized based on your financial data, average rates can give you an idea of ​​how much you can expect to pay.

Check out today’s average mortgage rates as of May 17, 2021:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.144%, which is 0.013% more than on Friday an average of 3.131%. For every $ 100,000 borrowed at today’s average rate, the monthly principal and interest payments will be $ 429. For the entire repayment period, you must pay a total interest expense of $ 54,588 for every $ 100,000 borrowed.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.971%, which is 0.005% more than the average of 2.966% on Friday. At today’s average rate, the monthly principal and interest payments would be $ 553 per $ 100,000 in mortgage debt. The total interest expense will be $ 32,755 for every $ 100,000 over the life of the loan.

The shorter the loan repayment period, the lower your interest expenses will be over time. This is because you will not be paying interest for that long. Unfortunately, while shortening the payout time, each payment must be higher so that you can get out of debt on time. As a result, although a 20-year mortgage will cost less over time than a 30-year mortgage, it will cost more every month.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.409%, which is 0.012% more than on Friday an average of 2.397%. You would look at the principal and interest payments of $ 663 for every $ 100,000 borrowed at today’s average rate. The total cost of paying interest would be $ 19,253 per $ 100,000 borrowed at today’s average rate.

The 15-year loan has an even shorter maturity, so over time it will save borrowers more than a 20-year or 30-year loan, but each monthly payment will be much higher.

5/1 ARM

Average 5/1 speed ARM is 2,841%, which is 0.022% higher than the average on Friday (2.819%). ARM is an adjustable rate mortgage. ARM 5/1 has a rate that can be adjusted once a year after the initial five-year period. Since it is possible that rates could rise then – especially given that they are currently close to record lows – many homeowners may be reluctant to take on the risk that ARM poses. This is especially true because the starting rate does not offer a significant discount over a 30-year fixed rate loan.

Should I lock my mortgage rate now?

Locking a mortgage rate guarantees you a specific interest rate for a specific period of time – usually 30 days, but you can keep your rate for up to 60 days. You usually pay a commission to lock in your mortgage rate, but this way you are protected in case rates rise between now and the time you actually close your mortgage.

If you are planning to close your home within the next 30 days, then it is worth locking in your mortgage rate based on today’s rates – especially since they are still quite competitive. But if there are more than 30 days left before your close, you can opt for a floating rate lock instead of what would normally be a higher fee, but which could save you money in the long run. A floating interest rate lock allows you to secure a lower mortgage rate if rates fall before the close, and while today’s rates are still pretty low, historically, we don’t know if rates will go up or down over the next few months. … Thus, it is beneficial:

  • LOCK if closing 7 days
  • LOCK if closing fifteen days
  • LOCK if closing thirty days
  • TO SWIM if closing 45 days
  • TO SWIM if closing 60 days

To find out which tariffs are available to you, compare the tariffs of at least three of best mortgage lenders before blocking.

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