Today’s mortgage & refinance rates, March 10, 2022: Most rates unchanged

Mortgage rates were mostly unchanged compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 5/1 ARMs and jumbo loans were unchanged.

Rates as of March 10, 2022.

The rates listed above are averages based on the assumptions shown here. Actual rates available on-site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Thursday, March 10th, 2022 at 7:30 a.m.

>>Check out historical mortgage interest rate movements

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

30-year fixed-rate mortgage holds firm

The average rate you’ll pay for a 30-year fixed mortgage is 4.27 percent, unchanged over the last seven days. Last month on the 10th, the average rate on a 30-year fixed mortgage was lower, at 3.98 percent.

At the current average rate, you’ll pay $489.02 per month in principal and interest for every $100k you borrow.

Use our mortgage calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. Our tool will also help you calculate how much interest you’ll fork up over the life of your loan.

15-year fixed mortgage moves down,-0.02%

The average rate you’ll pay for a 15-year fixed mortgage is 3.48 percent, down 2 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $448 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 come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.

5/1 ARM flat for the week

The average rate on a 5/1 ARM is 2.93 percent, unchanged since the same time last week.

Adjustable-rate mortgages, or ARMs, are home loans that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.93 percent would cost about $415 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage goes unchanged

The current average rate you’ll pay for jumbo mortgages is 4.29 percent, unaltered over the last seven days. A month ago, jumbo mortgages’ average rate was lower, at 3.99 percent.

At the current average rate, you’ll pay $489.02 per month in principal and interest for every $100k you borrow.

Summary: How mortgage interest rates have shifted

  • 30-year fixed mortgage rate: 4.27%, unchanged from last week
  • 15-year fixed mortgage rate: 3.48%, down from 3.50% last week, -0.02
  • 5/1 ARM mortgage rate: 2.93%, unchanged from last week
  • Jumbo mortgage rate: 4.29%, the same as last week

Interested in refinancing? See rates for home refinance

30-year mortgage refinance goes up, +0.04%

The average 30-year fixed-refinance rate is 4.25 percent, up 4 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 4.01 percent.

At the current average rate, you’ll pay $489.02 per month in principal and interest for every $100,000 you borrow.

Where mortgage rates are headed

Mortgage rates plunged early in the pandemic and scraped record lows — below 3 percent — at the start of 2021. The new year, however, has been characterized by rising rates. The days of sub-3 percent mortgage interest on the 30-year fixed are behind us, and many experts think the average rate on this loan will be 3.5 to 4 percent by the end of 2022. That’s still great by historical standards though. The ultra-low rates of 2020 and 2021 were an anomaly, but even 4 percent is a deal in the scheme of things.

“Mortgage rates continue to surge, as they have since the beginning of the year, as the outlook takes shape for Fed rate hikes that are sooner and faster than previously expected,” McBride says. “Mortgage rates are still well below 4 percent but in an environment of already sky-high home prices, more would-be homebuyers are priced out with each move higher in mortgage rates.”

Comparing different mortgage terms

The 30-year fixed-rate mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:

  • Lower monthly payment: Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower 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 smaller monthly payment can allow you to save more for retirement.

That said, shorter term loans have gained popularity as rates have been historically low. Although they have higher monthly payments compared to 30-year mortgages, there are some big benefits if you can afford the upfront costs. Shorter-term loans can help you achieve:

  • Greatly reduced interest costs: Because you pay off the loan faster, you’ll be able to pay less interest overall.
  • Lower interest rate: On top of less time for that interest to compound, most lenders price shorter-term mortgages with lower rates.
  • Build equity faster: The faster you pay off your mortgage, the faster you’ll own value in your home outright. That’s especially handy if you want to borrow against your property to fund other spending.
  • Debt-free sooner: A shorter-term mortgage means you’ll own your house free and clear sooner than you would with a longer-term loan.

Use Bankrate’s mortgage rate calculator to approximate your monthly payments and see how much you’ll save by adding extra payments. This calculator will also help you calculate how much interest you’ll fork up over the life of your loan.

Learn more:

Featured lenders, March 10, 2022

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *