Skip to content

Mortgage rates for Friday, May 6

May 5, 2016
by admin

Mortgage rates fell today. The average rates on 30-year fixed mortgages, 15-year mortgages and 5/1 ARMs all inched down.

While rates on mortgages fluctuate daily, they are currently around historic lows. Anyone thinking about purchasing or refinancing a home will find it’s a good time to be in the market. Borrowers with excellent credit can typically get rates that are well below average. That makes it crucial to shop around for the best mortgage rates.

30-year fixed mortgages

The average 30-year fixed-rate mortgage is 3.59%, down 6 basis points from a week ago.

At the current average rate, you’ll pay about $454 per month in principal and interest for every $100,000 you borrow.

You can use this mortgage calculator to estimate your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

Average Mortgage Rates
Product Rate Change Last week
30 year fixed 3.59% 0.06 3.65%
15 year fixed 2.73% 0.05 2.78%
30 year fixed jumbo 4.24% 0.10 4.34%
30 year fixed refinance 3.63% 0.06 3.69%
Last updated: 5/5/2016

15-year fixed mortgages

The average 15-year fixed-rate mortgage is 2.73%, down 5 basis points from a week ago.

There’s a trade-off with shorter-term loans like 15-years. You’ll pay more per month, but you’ll also save thousands of dollars over the life of the loan.

For example, monthly payments on a 2.73%, 15-year loan would cost around $678 for every $100,000 borrowed.

Over a 15-year term, the total interest payments would be around $22,000. That’s around $41,500 less than what you’d pay in interest with a 30-year loan at today’s rate.

5/1 adjustable-rate mortgages

The average 5/1 adjustable-rate mortgage is 2.96%, down 3 basis points from a week ago.

5/1 ARMs are best for those who plan to sell or refinance within a short time frame, because when the loan adjusts, rates could be significantly higher.

Monthly payments on a 5/1 ARM at 2.96% would cost about $419 for the initial 5 years. With rate caps of 2/2/5, payments could balloon to $730 per $100,000 at the final adjustment.

How much house can you afford?

Hero Images/Getty Images

Hero Images/Getty Images

It’s important to factor in more than the principal and interest payment when purchasing a home.

Other costs, such as homeowners insurance, property taxes and condo association fees, can increase your monthly check to the lender.

And your current monthly expenses — car payments, alimony, credit card payments — also play a big part.

You can use our home affordability calculator to estimate the mortgage amount that best fits your budget.

Where mortgage rates are headed

According to Bankrate’s Rate Trend Index, 17% of panelists think mortgage rates will increase over the next week or so, while 50% think rates will fall and 33% think rates will remain the same.

Follow me on Twitter: @MitchStrohm

No comments yet

Leave a Reply

Note: You can use basic XHTML in your comments. Your email address will never be published.

Subscribe to this comment feed via RSS

Comment validation by @