For most loans, rates fall


Average mortgage rates today fell on most loans. When buying a home, it’s helpful to keep an eye on trends in mortgage rates because even a small difference in percentage can have a big impact on your overall spending.

Check out the average mortgage rates for Wednesday July 14th to see the current rates for fixed and variable rate home loans:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.094%, which is 0.008% higher than yesterday’s average of 3.086%. If you borrow at today’s average rate, your monthly principal and interest payments will be $ 427 for every $ 100,000. The total interest expense will be $ 53,648 for every $ 100,000 over the life of the loan.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.848%, which is 0.014% lower than yesterday’s average of 2.862%. You would look at the principal and interest payments of $ 547 on $ 100,000 borrowed at today’s average rate. For the entire repayment period, you must pay a general interest expense of $ 31,285 for every $ 100,000 borrowed.

You will cut your overall interest expense with a 20-year loan versus a 30-year loan because you will be paying ten years less interest. However, a shorter payout period will mean higher monthly payments.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.389%, which is 0.008% below yesterday’s average of 2.397%. A mortgage at today’s average interest rate will cost you $ 662 for every $ 100,000. The total interest expense is $ 19,084 for every $ 100,000 in mortgage debt over the life of the loan.

By dramatically shortening your repayment time, you will save a lot of money with a 15 year loan. But high monthly payments associated with shorter payouts can seriously impact your budget.

5/1 ARM

Average 5/1 speed ARM is 2.933%, which is 0.003% less than yesterday’s average of 2.936%. ARM is an adjustable rate mortgage. This means that this figure can change over time. The warranty is valid only for the first five years, and after that it can be changed once a year. If your rate rises after it starts adjusting, monthly payments and total costs will end up being higher. Before choosing this type of loan, carefully study these risks.

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 when you actually close your mortgage.

If you are planning to close your home in the next 30 days, then it is worth locking in your mortgage rate based on today’s rates – especially since they are so 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 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, 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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