Here are the mortgage rates for June 9, 2021: Rates continue to fall
Today, a few major mortgage rates are trending down from last week. Average interest rates for 15-year fixed and 30-year mortgages have declined. At the same time, the average 5/1 variable rate mortgage rates have also fallen. Mortgage rates are constantly changing, but are currently at historically low levels. If you are shopping for a home, now is a great time to get a low rate. Before you buy, be sure to review your current financial situation and your goals. As always, shop around for the right lender and mortgage for you.
30-year fixed rate mortgages
The 30-year average fixed mortgage rate is 3.07%, a decrease of 3 basis points from a week ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most common loan term. A 30 year fixed rate mortgage will generally have a higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. While you will pay more interest over time – you pay off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15-year fixed rate mortgages
The average rate for a 15-year fixed-rate mortgage is 2.36%, down 2 basis points from a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. However, if you can afford the monthly payments, a 15-year loan has several advantages. You will most likely get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.
5/1 adjustable rate mortgages
A 5/1 ARM has an average rate of 3.08%, down 4 basis points from last week. You will typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 variable rate mortgage during the first five years of the mortgage. However, market fluctuations may cause your interest rate to increase after this period, as stated in your loan terms. For this reason, an adjustable rate mortgage can be a good option if you plan to sell or refinance your home before the rate changes. Otherwise, changes in the market could dramatically increase your interest rate.
Mortgage rate trends
We use data collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:
Average mortgage interest rates
|30 years fixed||3.07%||3.10%||-0.03|
|15 years fixed||2.36%||2.38%||-0.02|
|Giant 30-year mortgage rate||3.24%||3.15%||+0.09|
|30-year mortgage refinancing rate||3.13%||3.14%||-0.01|
Prices as of June 9, 2021.
How to find the best mortgage rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or by using an online calculator. When looking at mortgage rates, think about your goals and your current financial situation. Things that affect the interest rate you might get on your mortgage include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Having a higher credit score, higher down payment, low DTI, low LTV, or any combination of these factors can help you get a lower interest rate. The interest rate is not the only factor that affects the cost of your home. Also, be sure to take into account other factors such as fees, closing costs, taxes, and points of call. Be sure to shop around with multiple lenders – for example, credit unions and online lenders in addition to local and state banks – to get a mortgage that’s right for you.
What is a good loan term?
One important thing that you should consider when choosing a mortgage loan is the length of the loan or the payment schedule. The most commonly offered mortgage terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. The mortgages are then divided into fixed rate and adjustable rate mortgages. For fixed rate mortgages, the interest rates are fixed for the term of the loan. For variable rate mortgages, interest rates are set for a number of years (typically five, seven, or 10 years), and then the rate changes each year based on the market rate.
When deciding between a fixed rate mortgage and an adjustable rate mortgage, you need to think about how long you plan to live in your home. Fixed rate mortgages might be better suited for people who plan to stay in a home for a while. Fixed rate mortgages offer greater stability over time compared to variable rate mortgages, but variable rate mortgages may offer lower interest rates upfront. If you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage might give you a better deal. The best loan term depends on your situation and your goals, so be sure to consider what’s important to you when choosing a mortgage.