Mortgage

Here are today’s mortgage rates on Dec. 27, 2021: Rates slip

Here are today's mortgage rates on Dec. 27, 2021: Rates slip
Written by Publishing Team

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Some important mortgage rates are down today. Average interest rates for both 15-year fixed-rate mortgages and 30-year fixed-mortgages have fallen. At the same time, the average adjustable rate mortgage was also reduced by 5/1. Mortgage interest rates are never set, but interest rates are at historic lows. If you’re planning to buy a home, now might be a good time to get a flat rate. Before you buy a home, remember to consider your personal needs and financial situation, and talk to several lenders to find the right home for you.

30-year fixed-rate mortgage

For a 30-year fixed-rate mortgage, the average rate you’ll pay is 3.19%, which is down 5 basis points from a week ago. (Base point is 0.01%). Fixed mortgages of 30 years are the most common term of the loan. A 30-year fixed-rate mortgage usually has a higher interest rate than a 15-year fixed-rate mortgage—but also a lower monthly payment. You won’t be able to make your home payments quickly and will pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to reduce your monthly payments.

15 Years Fixed Return Mortgages

The average fixed-term mortgage rate for 15 years is 2.50%, which is a decrease of two basis points from last week. Compared to a 30-year fixed-rate mortgage, a 15-year fixed-rate mortgage with the same loan value and interest rate will have a higher monthly payment. However, if you are able to afford the monthly payments, there are many benefits to a 15-year loan. This usually includes being able to get a lower interest rate, pay off your mortgage sooner, and pay lower total interest in the long run.

1/5 adjustable mortgages

The average 5/1 ARM rate is 3.18%, a decrease of 6 basis points compared to last week. In the first five years, you’ll typically get a lower interest rate with a 1/5 adjustable mortgage than with a 30-year fixed mortgage. But you may end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. For borrowers who plan to sell or refinance their homes before a price change, ARM may be a good option. If not, shifts in the market could increase the interest rate significantly.

Mortgage rate trends

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:

Today’s Mortgage Interest Rates

loan period Today’s price last week change
30 year mortgage rate 3.19% 3.24% -0.05
Fixed rate for 15 years 2.50% 2.52% -0.02
30 year jumbo mortgage rate 2.74% 2.75% -0.01
30 year mortgage refinance rate 3.16% 3.21% -0.05

Prices are accurate as of December 27, 2021.

How to find personal mortgage rates

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. In order to find the best mortgage, you must take into account your current financial goals and objectives. Things that affect the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and debt-to-income ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home – be sure to also consider other costs such as fees, closing costs, taxes and discount points. You should compare shopping with several lenders – such as credit unions and online lenders as well as local and national banks – in order to get a mortgage that works for you.

What is a good loan term?

When choosing a mortgage, it is important to consider the loan term or payment schedule. The most common mortgage terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and adjustable rate mortgages. Fixed rate mortgage interest rates are fixed throughout the term of the loan. For adjustable rate mortgages, interest rates are set for a certain number of years (most often five, seven or 10 years), and then the rate changes annually based on the market rate. One factor to consider when choosing between a fixed rate and adjustable rate mortgage is the length of time you plan to live in your home. For people who plan to live a long time in a new home, fixed rate mortgages may be the best option. Fixed rate mortgages offer more stability over time than adjustable rate mortgages, but adjustable rate mortgages may offer lower interest rates up front. If you don’t plan to keep your new home for more than three to ten years, an adjustable mortgage may give you a better deal. There is no best loan term as a rule; It all depends on your goals and your current financial situation. It is important to do your research and understand what is most important to you when choosing a mortgage.

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