Mortgage

Today’s mortgage rates on Dec. 13, 2021: Despite uptick, rates stay low for homebuyers

Today's mortgage rates on Dec. 13, 2021: Despite uptick, rates stay low for homebuyers
Written by Publishing Team

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A number of closely watched mortgage rates have risen today, including 15-year fixed rates and 30-year fixed rates. Average adjustable rates for mortgages are also up 1/5 since last week’s numbers. Although mortgage interest rates change all the time, interest rates have historically been low. For this reason, now is a great time for potential homebuyers to get a fixed price. But as always, first make sure you consider your personal goals and circumstances before buying a home, and talk to several lenders to find a lender that can best meet your needs.

30-year fixed-rate mortgage

The average 30-year fixed-rate mortgage rate is 3.25%, which is an increase of 7 basis points over a week ago. (A base point is 0.01%.) The most common loan term is a 30-year fixed-rate mortgage. 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. Although you’ll pay more interest over time – you’re paying off your loan over a longer period of time – if you’re looking for a lower monthly payment, a 30-year fixed-rate mortgage may be a good option.

15 Years Fixed Return Mortgages

The average 15-year fixed-rate mortgage is 2.53%, which is a two basis point increase from the same period last week. You will definitely have a higher monthly payment with a 15-year fixed mortgage than with a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the best deal, if you can afford the monthly payments. 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 adjustable rate mortgage is 1/5 of 3.25%, an increase of 8 basis points over last week. In the first five years, you’ll typically get a lower interest rate with 1/5 ARM than with a 30-year fixed mortgage. However, shifts in the market may cause the interest rate to increase after that time, as detailed in the terms of your loan. For this reason, ARM can be a good option if you plan to sell or refinance your home before a price change. Other than that, changes in the market mean that your interest rate could be much higher once the rate is adjusted.

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 United States:

Today’s Mortgage Interest Rates

Prices are accurate as of December 13, 2021.

How to shop for the best mortgage rate

You can get a custom mortgage rate by contacting your local mortgage broker or using our online calculator. In order to find the best mortgage, you must take into account your current financial goals and objectives. Specific mortgage rates vary based on factors including credit score, down payment, debt-to-income ratio, and loan-to-value ratio. Generally, you want a higher credit score, a higher down payment, a lower DTI, and a lower LTV for a lower interest rate. The interest rate isn’t the only factor affecting the cost of your home – be sure to also consider other factors such as fees, closing costs, taxes and discount points. Be sure to talk with several different lenders — such as local and national banks, credit unions, and online lenders — and compare shop to find the best mortgage for you.

What is a good loan term?

One of the important things to consider when choosing a mortgage is the loan term or payment schedule. The most common loan terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate mortgages and adjustable rate mortgages. For fixed rate mortgages, the interest rates are the same for the life of the loan. For adjustable rate mortgages, the interest rates are the same for a certain number of years (usually five, seven or 10 years), and then the rate changes annually based on the current market interest rate.

When choosing between a fixed rate mortgage and an adjustable rate, you should consider how long you plan to live in your home. If you are planning to stay long 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 can sometimes 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. The best loan term depends on your situation and your goals, so be sure to consider what is important to you when choosing a mortgage.

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