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Today’s best mortgage and refinance rates: Saturday, November 14, 2020


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Adjustable mortgage rates have increased more than fixed rates since last Friday. Both fixed rates on new mortgages and refinance rates are down since this time last month, while adjustable rates are up.

Rates are still low in general, so it could be a good day to lock in a low mortgage rate. You’ll probably get a better deal with a fixed-rate mortgage than an adjustable-rate mortgage right now.

A fixed-rate mortgage locks in a rate for the entire life of your mortgage. An adjustable-rate mortgage keeps your rate the same for the first few years, then adjusts it once per year. Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider that typically there’s an advantage to an adjustable-rate mortgage, like a lower interest rate.

But he points out that ARMs don’t currently follow that pattern. Fixed rates are better than adjustable rates right now, because lenders want to keep customers banking with them for as long as possible. The 30-year fixed rate is lower than the 5/1 ARM rate this week. And you’d risk your 5/1 ARM rate increasing in five years, whereas you could lock in a low rate for decades with a 30-year term.

If your finances are in a good place, then it could be a good time to get a fixed-rate mortgage or refinance.

The best mortgage rates Saturday, November 14, 2020

Mortgage type
Average rate today
Average rate last week
Average rate last month

30-year fixed
2.84%
2.78%
2.87%

15-year fixed
2.34%
2.32%
2.37%

5/1 ARM
3.11%
2.89%
2.89%

Rates from the Federal Reserve Bank of St. Louis.

Fixed mortgage rates have increased a little since last Saturday, but adjustable rates have made a more significant increase. Fixed rates have gone down since this time last month, while adjustable rates have gone up.

Overall, mortgage rates are low right now. The trend downward becomes more apparent when you look at rates from 6 months and a year ago:

Mortgage type
Average rate today
Average rate 6 months ago
Average rate 1 year ago

30-year fixed
2.84%
3.28%
3.75%

15-year fixed
2.34%
2.72%
3.20%

5/1 ARM
3.11%
3.18%
3.44%

Rates from the Federal Reserve Bank of St. Louis.

Several factors affect mortgage rates. Lower rates are usually a sign of a struggling economy. As the coronavirus pandemic and economic crisis continue, rates will likely stay relatively low.

The best refinance rates Saturday, November 14, 2020

Mortgage type
Average rate today
Average rate last week
Average rate last month

30-year fixed
3.10%
3.07%
3.13%

15-year fixed
2.57%
2.72%
2.60%

10-year fixed
2.56%
2.58%
2.63%

Rates from Bankrate.

Refinance rates were most recently updated yesterday: Friday, November 13. The 30-year fixed refinance rates have gone up a little since last week, and 15-year and 10-year refinance rates have gone down. Refinance rates have decreased overall since this time last month.

30-year fixed rates

You’ll pay a higher interest rate on a 30-year fixed mortgage than on a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but recently 30-year terms have been the better deal.

Monthly payments are relatively low for a 30-year term, because you’re spreading payments out over a longer period of …read more

Source:: Business Insider

      

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