Current 30 Year Mortgage Rates, August 27, 2020 | Important rate trends higher - Bankrate.com

tederes.blogspot.com

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.

Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.

We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.

Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.

30-year mortgage rates

The average rate for a 30-year fixed-rate mortgage is 3.07 percent, an increase of 4 basis points over the past seven days. A month ago, the average interest rate on a 30-year mortgage was less favorable, at 3.09 percent.

At today’s average rate, you’ll pay principal and interest of $425.39 for every $100,000 you borrow. That’s up $2.17 from last Thursday. .

Check out today’s daily mortgage rates article to discover how other mortgage interest rates moved.

30-year refinance rates

The average rate to refinance a 30-year fixed-rate mortgage is 3.14 percent, falling 10 basis points over the previous seven days. A month ago, the average rate on a 30-year mortgage was 3.19 percent.

At the current average rate, you’ll pay principal and interest of about $429 for every $100k you borrow. Compared to last week, that’s $5.47 lower. .

Pros and cons of a 30-year mortgage

The 30-year mortgage is the most popular home loan, and it has a number of advantages. Among them:

• Lower monthly payment. Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
• Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
• Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
• Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
• Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed mortgage with a lower monthly cost can allow you to save more for retirement.

The 30-year mortgage also has some downsides:

• More total interest paid. A 30-year term means you’ll pay more overall in interest compared with what you’d pay with a shorter-term loan.
• Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
• Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
• Buying more house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

30-year fixed mortgage vs. 15-year fixed mortgage

The most significant drawback of a 30-year fixed-rate mortgage is the amount of interest you’ll pay. Mortgage rates are typically higher for 30-year loans than 15-year loans. Although your monthly payments will be lower for a 30-year loan, you’ll pay much more interest over the life of the loan.

For example, with a 15-year fixed mortgage, you’ll slash your repayment time in half and save significantly on interest in the process. Compare how much interest you’ll pay on 15-year and 30-year loans with Bankrate’s 15-year or 30-year fixed mortgage calculator.

Mortgage lock recommendations

A rate lock guarantees a lender will honor a specified interest rate at a specific cost for a set period. The benefit of a mortgage rate lock is that it protects you from market fluctuations. It also puts pressure on borrowers to make sure they close on homes before the rate-lock period expires. For example, if your lender locks in your rate at 3.75 percent for 45 days and rates jump up to 4 percent within that period, you’ll still get your loan at the lesser rate.

If they choose not to lock in your rate, you’ll have a “floating” rate. That’s not a bad strategy when interest rates are generally falling, but it could be costly in a rising rate environment. For risk-averse people who are looking for a mortgage, a rate-lock is a must. It’s a good idea to ask for a 45-day lock at a minimum; 60 days is even better.

Where rates are headed

Each week, Bankrate asks a panel of mortgage experts where they think mortgage rates will go over the next week. See Bankrate’s Mortgage Rate Trend Index for weekly bets.

In order to provide the latest rates, lenders across the nation respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for an assortment of purchase and refinance loans.

Searching for a mortgage lender? See Bankrate’s lender reviews here.

Other daily news articles:

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 — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s on-site rate averages”.

Let's block ads! (Why?)

"current" - Google News
August 27, 2020 at 09:11PM
https://ift.tt/3gyBem2

Current 30 Year Mortgage Rates, August 27, 2020 | Important rate trends higher - Bankrate.com
"current" - Google News
https://ift.tt/3b2HZto
https://ift.tt/3c3RoCk

Bagikan Berita Ini