The shorter term of 15-year fixed-rate mortgages results in higher monthly payments compared to an equivalent 30-year loan. However, if the payments fit your budget, this type will save you money in the long run since you’ll pay a lower interest rate for less time.
The latest rates on adjustable-rate mortgages
- The latest rate on a 5/1 ARM is 3.169%. ⇓
- The latest rate on a 7/1 ARM is 3.444%. ⇓
- The latest rate on a 10/1 ARM is 3.537%. ⇓
An adjustable-rate mortgage could be a good option if you don’t plan on keeping the home long term. The interest rate on an ARM will be fixed for a pre-determined number of years, then reset regularly. A 5/1 ARM, for example, will have a fixed rate for five years. The rate will adjust yearly after that. The downside is that the rate could increase significantly at any time after it becomes variable.
The latest VA, FHA and jumbo loan rates
The average rates for FHA, VA and jumbo loans are:
- The rate on a 30-year FHA mortgage is 4.391%. ⇓
- The rate on a 30-year VA mortgage is 4.793%. ⇓
- The rate on a 30-year jumbo mortgage is 3.978%. ⇔