Mortgage interest rates continue to maintain their downward trend as a range of interest rates went down. It includes the average rates for 30 and 15 years fixed mortgages. There has also been a decrease in average rates of 5/1 adjustable mortgages.
While mortgage interest rates aren’t normally stable, interest rates have sunk to touch historic lows. If you are interested in buying a home at a fixed interest rate, it is time you make a move. But before making any move, you need to factor in your financial state and personal requirements. You should also compare the mortgage interest rates offered by various lenders before deciding on the one just right for you.
15 And 30 Year Mortgage Interest Rates
The mortgage interest rate for 30 years fixed stands at 3.14% at present. It has declined by five basis points within a week. One basis point comes to around 0.01%. The most frequently applied for a loan is the fixed mortgage interest rates for the longer term of 30 years.
The 30-year term naturally has a greater rate of interest than the mortgage interest rates for a fixed period of 15 years, but the monthly equated installment is lower.
The normal rate for 15-year mortgage interest rates is 2.44%, a decrease of two basis points from a week ago. The monthly payment for fifteen years fixed mortgage interest rates is higher when compared to 30 years. But the 15-year period is a better proposition if are comfortable with the monthly payment. The interest rates are usually lower than 30 years and the total interest works out to much less, and you can be free from a mortgage much earlier.
The 5/1 adjustable-rate mortgage interest works out to 3.13% on average, which is a drop of 5 points from a week ago. The first 5-year interest rates are lower compared to 30 years. But you will finally pay more in the long run.