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Today’s best mortgage and refinance rates: Saturday, November 21, 2020


4x3 Best mortgage and refinance rates daily green

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Mortgage and refinance rates have decreased since last Saturday, with the exception of 10-year fixed refinance rates, which have remained steady.

Rates are low overall right now. You’ll probably get a better deal with a fixed-rate mortgage than an adjustable-rate mortgage, though.

Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider that adjustable-rate mortgages are becoming less beneficial for borrowers. ARM rates are starting higher than fixed-rate mortgages, and you’d risk your rate increasing down the road. It’s probably better to lock in a historically low interest rate now with a fixed-rate loan.

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

The best mortgage rates Saturday, November 21, 2020

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

30-year fixed
2.72%
2.84%
2.81%

15-year fixed
2.28%
2.34%
2.35%

5/1 ARM
2.85%
3.11%
2.90%

Rates from the Federal Reserve Bank of St. Louis.

Mortgage rates are down since this time last week and this time last month.

Mortgage rates are at historic lows overall. 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
2.72%
3.24%
3.66%

15-year fixed
2.28%
2.70%
3.15%

5/1 ARM
2.85%
3.17%
3.39%

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 21, 2020

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

30-year fixed
3.00%
3.10%
3.20%

15-year fixed
2.54%
2.57%
2.64%

10-year fixed
2.56%
2.56%
2.66%

Rates from Bankrate.

The 30-year and 15-year refinance rates have decreased since last week, while 10-year refinance rates have held steady. Refinance rates have decreased across the board since this time last month. These rates were most recently updated on Friday, November 20.

How do 30-year fixed rates work?

A 30-year fixed mortgage charges a higher rate than a fixed-rate mortgage with a shorter term. For a long time, 30-year fixed rates were also higher than adjustable rates, but 30-year fixed mortgages are actually the better deal right now.

You’ll pay more in interest with a 30-year term than you would for a 15-year term, because a) the interest rate is higher, and b) you’ll be paying interest for longer.

You’ll make higher monthly payments on a 30-year term than on a shorter term, because you’re spreading out payments over a longer period of time.

How do 15-year fixed rates work?

The 15-year mortgage rates are lower than 30-year mortgage rates. Between the lower rates and paying off the loan in half the time, you’ll pay less in the long run on a 15-year mortgage than on a longer term.

However, your monthly payments will be higher on a 15-year loan than on a 30-year loan. You’re paying off the same principal amount in a shorter amount of time, so you’ll pay more each month.

How do 10-year fixed rates …read more

Source:: Business Insider

      

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