A 15-year fixed-rate mortgage will have a lower interest rate and shorter payback time than a longer-term loan. This means a lower total cost, which makes the 15-year an attractive option for some borrowers. The disadvantage is that the monthly payments will be higher than on a similarly sized 30-year mortgage, so may not be manageable for your budget.
The latest rates on adjustable-rate mortgages
- The latest rate on a 5/1 ARM is 3.222%. ⇓
- The latest rate on a 7/1 ARM is 3.559%. ⇑
- The latest rate on a 10/1 ARM is 3.728%. ⇑
Adjustable-rate mortgages could be a good option for borrowers not planning on staying in their home long-term. The interest rate on an ARM will be fixed and generally low for the first few years. It will then become variable and change periodically. For instance, a 5/1 ARM will have a fixed rate for five years before adjusting yearly. The potential risk with an ARM is that the interest rate could increase significantly after the fixed period ends.
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 4.338%. ⇑
- The rate on a 30-year VA mortgage is 4.669%. ⇓
- The rate on a 30-year jumbo mortgage is 3.978%. ⇔