Today’s mortgages, refinancing rate: October 3, 2021

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Mortgage rates remain low today. Adjustable rates have started going down in the last two and a half weeks, so they’re more competitive with fixed rates than they’ve been for at least a year. When applying for a mortgage, you may want to consider both fixed rate and variable rate options.

While ARM rates have fallen, fixed rates have risen slightly over the past two weeks. However, adjustable rate cuts have been larger than fixed rate increases, so fixed rates remain generally good deals.

Mortgage rates today

Money.com conventional rates; RedVentures government guaranteed rates.

Mortgage Refinance Rate Today

Money.com conventional rates; RedVentures government guaranteed rates.

15-year fixed rate mortgages

A 15-year fixed mortgage locks in your rate for the entire 15 years you spend paying off your mortgage.

A 15-year term comes with higher monthly payments than a longer term because you pay off the same loan principal in fewer years.

But a 15-year term will cost you less than a 30-year long term. You’ll get a lower interest rate and pay off your mortgage in half the time.

30-year fixed rate mortgages

If you get a 30-year fixed mortgage, you’ll pay a fixed rate for 30 years. A 30-year fixed mortgage has a higher interest rate than a 15-year fixed mortgage.

You will make smaller monthly payments over a 30-year term than over a 15-year term because you are spreading your payments over an extended period.

On the flip side, you’ll pay more interest with a 30-year fixed mortgage than with a shorter term, because you’re paying a higher interest rate for more years.

Arms

An adjustable rate mortgage, often called an ARM, will lock in your rate for a specified period of time. Then your rate will change regularly. A 7/1 ARM keeps your rate constant for seven years, then your rate will increase or decrease once a year.

You may want to consider choosing a fixed rate mortgage over an ARM, even if ARM rates are currently at their lowest. 30-year fixed rates are lower than ARM rates, so you might want to get a low rate with a fixed mortgage. Plus, you won’t risk a future ARM rate increase.

If you are considering getting an ARM, talk to your lender about your rates if you chose a fixed rate mortgage over an adjustable rate mortgage.


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