Mortgage rates diverged today. The average for a 30-year fixed-rate mortgage was flat, but the average rate on a 15-year fixed were down. Meanwhile, the average rate on 5/1 adjustable-rate mortgages notched higher.
Mortgage rates are constantly changing, but they continue to represent a bargain compared to rates before the Great Recession. If youâ€™re in the market for a mortgage, it may be a great time to lock in a rate. Just be sure to shop around.
The average rate for the benchmark 30-year fixed mortgage is 4.40 percent, unchanged over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.44 percent.
At the current average rate, youâ€™ll pay principal and interest of $500.76 for every $100,000 you borrow.
You can use Bankrateâ€™s mortgage calculator to estimate your monthly payments and find out how much youâ€™ll save by adding extra payments. It will also help you calculate how much interest youâ€™ll pay over the life of the loan.
The average 15-year fixed-mortgage rate is 3.78 percent, down 1 basis point over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $729 per $100,000 borrowed. Thatâ€™s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: Youâ€™ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 ARM is 4.10 percent, up 6 basis points since the same time last week.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 4.10 percent would cost about $483 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loanâ€™s terms.
To see where Bankrateâ€™s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are right now? See local mortgage rates.
Last updated: August 27, 2018.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile â€” they help consumers see the movement of rates day to day. The institutions included in the â€śBankrate.com Site Averageâ€ť tables will be different from one day to the next, depending on which institutionsâ€™ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see â€śUnderstanding Bankrateâ€™s Rate Averages.â€ť