Lower rates for all loans

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On the last day of June, mortgage rates are falling everywhere. If you are interested in buying a home, the rates are now very competitive, although they are up from the record lows seen in the heart of the coronavirus pandemic.

Check out today’s average rates for Wednesday, June 30 to see what a home loan could cost you:

The data source: The Ascent National Mortgage Interest Rate Tracker.

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30-year mortgage rates

The 30-year average mortgage rate today stands at 3.179%, down 0.012% from yesterday’s average of 3.191%. If you borrow at today’s average rate, your monthly principal and interest payments would be $ 431 for every $ 100,000 borrowed. During the term of the loan, you would pay a total interest charge of $ 55,275 for every $ 100,000 borrowed.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.938%, down 0.018% from yesterday’s average of 2.956%. A mortgage at the current average interest rate would cost you $ 551 for every $ 100,000 you borrow. The total interest charge would be $ 32,360 per $ 100,000 borrowed at today’s average rate.

The 20-year loan has a lower interest rate than the 30-year loan, but it has higher monthly payments because you don’t have as much time to pay off your loan. Each monthly payment must be larger for the loan to be repaid a decade earlier. However, you will save a lot of money on interest over time, both because of the lower rate and because you don’t pay interest for that long.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.465%, down 0.015% from yesterday’s average of 2.480%. At this average rate, you would have a principal and interest payment of $ 665 for every $ 100,000 borrowed. For every $ 100,000 you borrow at today’s average rate, the total interest charge would be $ 19,726.

The interest savings are even greater with the 15 year loan because the rate is lower and you pay interest for a lot less years. But the short repayment time of this loan means that each monthly payment has to be considerably higher.

5/1 arm

The average 5/1 ARM rate is 2.931%, down 0.079% from yesterday’s average of 3.010%. ARM stands for Variable Rate Mortgage, so you cannot rely on this rate forever. After five years, the rate will begin to adjust. Since it could potentially end up being higher than the rate on the 30-year fixed-rate loan, this option could be more expensive in the long run even though it initially appears cheaper.

Should I lock in my mortgage rate now?

A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You will usually pay a fee to lock in your mortgage rate, but this way you are protected in the event of a rate hike before your mortgage closes.

If you plan to close your home within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are very competitive. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your mortgage if rates drop before you close, and while rates today are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it is beneficial to:

  • LOCK if closing 7 days
  • LOCK if the closure 15 days
  • LOCK if closing 30 days
  • FLOAT if the closure 45 days
  • FLOAT if the closure 60 days

To find out what rates are available to you, compare the rates of at least three of the top mortgage lenders before you lock in.

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