Current mortgage and refinance rates for December 23rd, 2021

Mortgage interest rates were mostly lower compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed and jumbo loans receded, while rates for adjustable rate mortgages remained flat.

Rates last updated on December 23, 2021.

The rates listed above are averages based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Thursday, December 23rd, 2021 at 7:30am.

>>See historical mortgage interest rate trends

You can save thousands of dollars over the life of your mortgage by getting multiple offers. “It is so important to shop around,” says Greg McBride, CFA, Bankrate chief financial analyst. “Not everyone offers the same price, and some lenders may have motivation to be very competitive on price.”

Mortgage interest rates

Current 30 year mortgage rate retreats, -0.06%

The average rate you’ll pay for a 30-year fixed mortgage is 3.19 percent, a decrease of 6 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 3.18 percent.

At the current average rate, you’ll pay principal and interest of $428.10 for every $100,000 you borrow. That’s $6.56 lower, compared with last week.

30-year mortgage vs. 15-year mortgage

Most mortgage lenders defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers because it allows the borrower to disperse loan payments out over 30 years, keeping their monthly payment lower.

With a 15-year mortgage, however, borrowers are able to pay off their loan in half the time — if they’re able and willing to enlarge the amount of their monthly loan payment. The primary difference between qualifying for a 15-year versus a 30-year mortgage is that you’ll need a higher income and lower debt-to-income ratio to obtain a 15-year mortgage because the monthly payments are inflated.

15-year mortgage falls,-0.02%

The average rate for a 15-year fixed mortgage is 2.50 percent, down 2 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $390 per $100k borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 adjustable rate mortgage holds firm

The average rate on a 5/1 adjustable rate mortgageis 2.74 percent, unchanged from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate can change intermittently throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for those 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 2.74 percent would cost about $402 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage interest rate declines, -0.06%

The current average rate you’ll pay for jumbo mortgages is 3.18 percent, a decrease of 6 basis points over the last seven days. Last month on the 23rd, the average rate was below that, at 3.17 percent.

At today’s average jumbo rate, you’ll pay a combined $428.10 per month in principal and interest for every $100k you borrow. Compared with last week, that’s $6.56 lower.

Rate review: How interest rates have shifted

  • 30-year fixed mortgage rate: 3.19%, down from 3.25% last week, -0.06
  • 15-year fixed mortgage rate: 2.50%, down from 2.52% last week, -0.02
  • 5/1 ARM mortgage rate: 2.74%, the same as last week
  • Jumbo mortgage rate: 3.18%, down from 3.24% last week, -0.06

Refinance rates

30-year mortgage refinance rate trends down, –0.05%

The average 30-year fixed-refinance rate is 3.16 percent, down 5 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.15 percent.

At the current average rate, you’ll pay $428.10 per month in principal and interest for every $100,000 you borrow.

Is now a good time to buy a house?

There’s never a straightforward answer to this question. It always depends. Do you have a reliable income, a good credit score and money saved for a down payment and repairs? If you can answer all of those questions affirmatively, you’re ready to buy.

However, the pandemic has led to an even greater shortage of homes. That’s caused a bidding war and rising prices. Those trends mean it can be a frustrating market for buyers.

Keep reading:

Featured lenders for December 23, 2021

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