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Mortgage rates today followed a split path. While the average interest rate fell on 15-year fixed-rate mortgages, the average interest rate for a 30-year fixed-rate mortgage remained constant. We also saw a downward trend in the average rate of 5/1 floating rate mortgages. Mortgage rates are never set in stone, but rates are at all-time lows. If you are planning to buy a home, now may be a good time to get a fixed price. However, as always, before buying a home, think about your personal goals and circumstances first and find a lender who can best meet your needs.

Look at the mortgage rates for different types of loans

30-year fixed-rate mortgages

The 30 year average fixed mortgage rate is 3.01%, which is the same as it was a week ago. (One basis point is 0.01%.) The most common repayment term is a 30-year fixed-rate mortgage. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year – but often a higher interest rate. You won't be able to pay off your home that quickly, and you will pay more interest over time, but a 30-year fixed-rate mortgage is a good option if you want to minimize your monthly payments.

15-year fixed-rate mortgages

The average interest rate on a 15-year fixed-rate mortgage is 2.30%, down 1 basis point from seven days ago. With a 15-year fixed-rate mortgage, you definitely have a higher monthly rate than with a 30-year fixed-rate mortgage, even if the interest rate and loan amount are the same. But a 15 year loan is usually a better deal as long as you can afford the monthly payments. You will usually get a lower interest rate and pay less overall interest because you will pay off your mortgage much faster.

5/1 adjustable rate mortgages

A 5/1 ARM has an average rate of 3.02%, a 1 basis point decrease from the same point in time last week. A variable rate mortgage usually gives you a lower interest rate for the first five years than a 30-year fixed-rate mortgage. But you can pay more after that time, depending on the terms of your loan and how the interest rate adjusts to the market rate. Because of this, an ARM could be a great option if you are planning to sell or refinance your home before the interest rate changes. But if it doesn't, a shift in market rates could look for a much higher rate.

Mortgage rate trends

We use the rates collected by Bankrate, owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average interest rates offered by US lenders:

Average mortgage interest
product rate Last week change
30 years 3.01% 3.01% opener
Fixed for 15 years 2.30% 2.31% -0.01
30 year jumbo mortgage rate 2.78% 2.80% -0.02
30 year mortgage refinancing rate 3.00% 2.99% +0.01

Prices from July 30th, 2021.

How to Find Personalized Mortgage Rates

To find a personalized mortgage rate, contact your local mortgage broker or use an online mortgage service. To find the best mortgage for your home, you need to consider your goals and current finances. A number of factors – including your down payment, creditworthiness, loan-to-value ratio, and debt-to-income ratio – all affect your mortgage interest rate. Good credit, a larger down payment, a lower DTI, a lower LTV, or a combination of these factors can help you get a lower interest rate. The interest rate isn't the only factor that affects the cost of your home – consider other factors too, such as fees, closing costs, taxes, and discount points. Make sure you check out multiple lenders – such as credit unions and online lenders, and local and national banks – to get a loan that works best for you.

What is a good repayment term?

One important thing to consider when choosing a mortgage is the repayment term or payment schedule. The most common mortgage terms are 15 years and 30 years, but there are also 10, 20 and 40 year mortgages. Another important difference is between fixed rate and adjustable rate mortgages. The interest rates on a fixed-rate mortgage are fixed for the term of the loan. Unlike a fixed-rate mortgage, the interest rates on a variable-rate mortgage are only set for a certain period of time (usually five, seven or 10 years). Thereafter, the interest rate is adjusted annually based on the market interest rate.

One factor to consider when deciding between a fixed rate mortgage and an adjustable rate mortgage is the length of time you want to be in your home. If you're looking to stay in a new home for the long term, fixed-rate mortgages may be a better option. While adjustable rate mortgages can offer lower interest rates upfront, fixed rate mortgages are more stable over time. However, you can get a better deal on an adjustable rate mortgage if you only want to keep your home for a few years. The best repayment term depends entirely on your situation and your goals. Therefore, when choosing a mortgage, consider what is important to you.

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source https://seapointrealtors.com/2021/07/30/here-are-mortgage-rates-for-july-30-2021-major-rates-varied/

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