Rate hike for most fixed rate loans
Mortgage rates today have increased for some loans and decreased for others. It is a good idea for people buying a home to keep track of average interest rates to get an idea of ââwhat a home loan could cost.
Here are today’s average mortgage rates for Monday, June 28th:
Start your journey to financial success with a bang
Get free access to the select products we use to meet our money goals. These fully vetted tips could be the solution to increasing your credit score, investing more profitably, building an emergency fund, and much more.
30 year mortgage interest
The average 30-year mortgage rate today is 3.203%, 0.001% less than Friday’s average of 3.204%. At today’s average rate, you would borrow $ 433 a month in principal and interest per $ 100,000. The total interest cost would be $ 55,747 per $ 100,000 borrowed during the life of the loan.
20 year mortgage interest
The average 20 year mortgage rate is 2.965% today, up 0.01% from Friday’s 2.955% average. Borrowing at today’s average interest rate would leave you with a monthly principal and interest payment of $ 553 per $ 100,000 mortgage debt. You would put yourself at a total interest cost of $ 32,683 per $ 100,000 mortgage debt over the life of the loan.
A 20 year mortgage gets cheaper over time, but costs more every month. If you make fewer payments, each must be higher. However, you don’t owe the lender interest for so long, so the total cost is lower.
Mortgage rates for 15 years
The average 15 year mortgage rate today is 2.497%, 0.001% more than Friday’s average of 2.496%. If you borrow at today’s average rate, you have a monthly principal and interest payment of $ 667 for every $ 100,000 borrowed. The total interest cost would be $ 19,997 per $ 100,000 mortgage debt over the life of the loan.
This mortgage cuts the payback period significantly compared to a 30 or 20 year loan. This means that it will cost significantly less over the life of the loan. But with so few monthly payments, each can be huge and potentially a drain on your budget.
The average 5/1 ARM rate is 2.919%, 0.092% less than Friday’s average of 3.011%. ARM stands for adjustable rate mortgage. This tariff is only guaranteed for the first five years. It could adjust after that time, and there is a good chance the rates will go higher. That would cause the monthly payments and the total cost of interest to rise. Although this loan looks better than the 30 year fixed rate loan today, homebuyers should be aware of the risks.
Should I lock my mortgage rate now?
A mortgage lock guarantees you a specific interest rate for a specific period of time – usually 30 days, but you may be able to secure your interest rate for up to 60 days. You generally pay a fee to fix your mortgage interest rate, but that way you are protected in the event that interest rates rise between now and when you actually close your mortgage.
If you plan to close your home within the next 30 days, it pays to lock your mortgage rate based on today’s rates – especially since they are so competitive. However, if your graduation is more than 30 days away, you may want to choose a floating rate lock instead, which typically incurs a higher fee but can save you money in the long run. With a floating rate lock, you can secure a lower rate on your mortgage if rates fall before you close, and while rates are still quite low today, we don’t know if rates will go up or down in the next few months. So it’s worth it:
- LOCK when close in 7th Days
- LOCK when close in fifteen Days
- LOCK when close in 30th Days
- HOVER when close in 45 Days
- HOVER when close in 60 Days
To find out what interest rates are available to you, compare the interest rates of at least three of the best mortgage lenders before you log on.