Rates are falling on all loans

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On the last day of June mortgage rates down in all directions. If you are interested in buying a home, the rates are very competitive right now, although they are above all-time lows seen at the height of the coronavirus pandemic.

Check out the average rates for Wednesday, June 30th to find out how much a home loan can cost you:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.179%, which is 0.012% below the average of 3.191% yesterday. If you borrow at today’s average rate, your monthly principal and interest payments will be $ 431 for every $ 100,000. Over the life of the loan, you will pay a general interest expense of $ 55,275 for every $ 100,000.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.938%, down 0.018% from the average of 2.956% yesterday. A mortgage at today’s average interest rate will cost you $ 551 for every $ 100,000. The total cost of paying interest would be $ 32,360 for every $ 100,000 borrowed at today’s average rate.

The interest rate of a 20-year loan is lower than a 30-year loan, but the monthly payments are higher because you don’t have much time to pay off the loan. Each monthly payment must be higher in order for the loan to be paid off ten years earlier. However, over time, you will save a lot of money on interest both because of the lower rate and because you have not paid interest for so long.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.465%, which is 0.015% less than yesterday’s average of 2.480%. At this average rate, you would be looking at a principal and interest payment of $ 665 for every $ 100,000 borrowed. For every $ 100,000 that you borrow at today’s average rate, the total interest expense is $ 19,726.

With a 15-year loan, the savings on interest are even greater because the rate is lower and because you pay interest for much less years. But the short repayment terms of the loan mean that each monthly payment must be significantly higher.

5/1 ARM

Average 5/1 speed ARM is 2.931%, which is 0.079% less than yesterday’s average of 3.010%. ARM is an adjustable rate mortgage, so you can’t count on this rate forever. In five years, the rate will begin to adjust. Since it may end up being higher than the rate on a 30-year fixed-rate loan, this option may be more expensive in the long run, even if it seems cheaper at first.

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 in the next 30 days, then it will be beneficial to lock in your mortgage rate based on today’s rates – especially since they are so competitive. But if there are more than 30 days left until your close, you can opt for a floating rate lock instead, for 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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