Mortgage Rates Today – January 14, 2020: Rates Rise Again

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Mortgage rates have increased slightly from yesterday. Here’s what they look like today:

The data source: The Ascent National Mortgage Interest Rate Tracker.

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30-year mortgage rates

The 30-year average mortgage rate today stands at 2.856%, up 0.012% from yesterday. At today’s rate, you’ll pay principal and interest of $ 413.88 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.630%, up 0.019% from yesterday. At today’s rate, you’ll pay principal and interest of $ 536.16 for every $ 100,000 you borrow. Although your monthly payment increases by $ 122.28 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 20,316.64 in interest over your repayment period for every $ 100,000 you borrow.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.266%, unchanged from yesterday. At today’s rate, you’ll pay principal and interest of $ 655.92 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 242.04 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 30,928.91 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average 5/1 ARM rate is 3.355%, up 0.223% from yesterday. An ARM 5/1 gives you the same rate for the first five years of your mortgage, after which that rate adjusts once a year. Now, your rate could go down if market conditions demand it, but it could go up too. As such, a variable rate mortgage only makes sense if it offers a lower interest rate than a fixed loan. Since this is not the case today, you had better go for a fixed rate mortgage.

Should I lock in my mortgage rate now?

A mortgage rate freeze guarantees you a specific interest rate for a certain period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You’ll usually pay a fee to lock in your mortgage rate, but that way you’re protected if rates go up by the time your mortgage closes.

If you plan to close your home within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are still quite low. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your loan if rates drop before your mortgage closes, and while rates today are very competitive, we don’t know if rates will go up. or will decrease over the next few months. As such, it is beneficial to:

  • LOCK if the closure 7 days
  • LOCK if the closure 15 days
  • LOCK if the closure 30 days
  • FLOAT if the closure 45 days
  • FLOAT if the closure 60 days

If you’re ready to apply for a mortgage, reach out to different lenders and see what deals they have for you. But remember, you don’t just want to look at interest rates when evaluating an offer. Instead, see what closing costs you will be charged. And also, make sure that your lender can get your loan closed within a reasonable time. It’s always a good idea to get the big picture when deciding which mortgage offer is right for you.

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