Here are mortgage rates for June 7, 2021: Rates increase – CNET

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A few major mortgage rates boasted increases today. While 15-year fixed mortgage rates didn’t fluctuate, interest rates on 30-year fixed mortgages made gains. At the same time, average rates for 5/1 adjustable-rate mortgages were raised. Although mortgage rates are dynamic, they are lower than they’ve been in years. If you plan to finance a house, now might be an optimal time to get a fixed rate. Before you purchase a house, remember to think about your personal needs and financial situation, and compare offers from multiple lenders to find the best one for you.

Find current mortgage rates for today

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 3.10%, which is an increase of 2 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but typically a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.37%, which is the same rate from seven days ago. You’ll definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, if you can afford the monthly payments, there are several benefits to a 15-year loan. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 3.12%, a climb of 2 basis points compared to a week ago. With an adjustable-rate mortgage mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But changes in the market might cause your interest rate to increase after that time, as detailed in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage might make sense for you. Otherwise, changes in the market means your interest rate might be a good deal higher once the rate adjusts.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 3.10% 3.08% +0.02
15-year fixed rate 2.37% 2.37% N/C
30-year jumbo mortgage rate 3.16% 3.14% +0.02
30-year mortgage refinance rate 3.16% 3.13% +0.03

Updated on June 7, 2021.

How to find the best mortgage rates

To find a personalized mortgage rate, speak to your local mortgage broker or use an online mortgage service. Make sure to consider your current finances and your goals when looking for a mortgage. Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider additional factors such as fees, closing costs, taxes and discount points. Make sure you talk to multiple lenders — like local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage loan for you.

What’s the best loan term?

When picking a mortgage, you should consider the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are set for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only set for a certain amount of time (typically five, seven or 10 years). After that, the rate changes annually based on the market interest rate.

When choosing between a fixed-rate and adjustable-rate mortgage, you should take into consideration how long you plan to stay in your house. Fixed-rate mortgages might be a better fit for people who plan on living in a home for quite some time. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable in the long term. If you aren’t planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage might give you a better deal. There is no best loan term as a rule of thumb; it all depends on your goals and your current financial situation. Be sure to do your research and know what’s most important to you when choosing a mortgage.

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