The advantages of a 15-year fixed-rate mortgage are its lower interest rate and shorter payback time, which means you won’t pay as much for the loan. The drawback is that the monthly payments will be higher than those on a similarly sized longer-term loan.
The latest rates on adjustable-rate mortgages
- The latest rate on a 5/1 ARM is 2.541%. ⇓
- The latest rate on a 7/1 ARM is 3.859%. ⇓
- The latest rate on a 10/1 ARM is 4.1%. ⇓
Another option is an adjustable-rate mortgage. This type of loan will start with a low, fixed introductory rate for a predetermined amount of time. Once that period ends, the rate will become variable and adjust on a regular schedule. For instance, the rate on a 5/1 ARM will be fixed for five years then adjust yearly. An ARM could be a good option for borrowers who don’t plan to stay in the home long-term or expect to refinance if the interest rate increases.
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 3.808%. ⇑
- The rate on a 30-year VA mortgage is 3.819%. ⇓
- The rate on a 30-year jumbo mortgage is 3.601%. ⇓