Multiple benchmark mortgage rates tapered off today. The average rates on 30-year fixed and 15-year fixed mortgages both ticked downwards. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also slid lower.
Rates as of January 1, 2021.
Data source: Bankrate overnight averages data
Mortgage rates are in a constant state of flux, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just don’t do so without shopping around first.
View mortgage rates for a variety of rate terms.
30-year mortgage rates today
The average 30-year fixed-mortgage rate is 2.87 percent, down 3 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.
At the current average rate, you’ll pay a combined $414.63 per month in principal and interest for every $100,000 you borrow. That’s lower by $1.60 than it would have been last week.
You can use Bankrate’s mortgage loan calculator to get a handle on what your monthly payments would be and see how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year mortgages
The average 15-year fixed-mortgage rate is 2.35 percent, down 3 basis points from a week ago.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $660 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 Adjustable Rate Mortgage Rates
The average rate on a 5/1 ARM is 3.01 percent, ticking down 4 basis points from a week ago.
These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.01 percent would cost about $422 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Jumbo mortgage rates
The average rate you’ll pay for a jumbo mortgage is 2.89 percent, a decrease of 4 basis points over the last seven days. This time a month ago, the average rate on a jumbo mortgage was higher, at 2.96 percent.
At today’s average rate, you’ll pay a combined $415.69 per month in principal and interest for every $100k you borrow. That’s a decline of $2.15 from last week.
To follow how rates change day-to-day, check out our rates hub.
Where to get the best rates
Interest rates can differ largely based on overarching market forces, the loan amount, your location, your financial situation and how motivated mortgage lenders are to get your business. Keep in mind that the rates we cite are market averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.
It’s important when you’re looking for a mortgage to shop around and compare and contrast all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.
Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain current on today’s rates. If you’re not happy with the results you see between these pages, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.
Read about other loan terms:
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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.
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January 01, 2021 at 06:32PM
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Current Mortgage Rates, January 1, 2021 | Rates dip - Bankrate.com
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