Today’s best mortgage and refinance rates, January 27, 2022

Average mortgage rates rose for all loan terms compared to a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans rose.

Rates accurate as of January 27, 2022.

The rates listed above are marketplace averages based on the assumptions shown here. Actual rates available on-site may vary. This story has been reviewed by in-house editor Bill McGuire. All rate data accurate as of Thursday, January 27th, 2022 at 7:30am.

You can save thousands of dollars over the life of your mortgage by getting multiple offers. “It is so important to shop around,” says Greg McBride, CFA, Bankrate chief financial analyst. “Not everyone offers the same price, and some lenders may have motivation to be very competitive on price.”

Mortgage interest rates

30-year mortgage moves higher, +0.14%

The average rate for a 30-year fixed mortgage is 3.73 percent, up 14 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was lower, at 3.24 percent.

At the current average rate, you’ll pay principal and interest of $461.41 for every $100,000 you borrow. Compared to last week, that’s $13.48 higher.

15-year fixed mortgage moves upward,+0.17%

The average rate you’ll pay for a 15-year fixed mortgage is 3.09 percent, up 17 basis points over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $422 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.

5/1 ARM moves up, +0.04%

The average rate on a 5/1 ARM is 2.80 percent, adding 4 basis points from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate loans. These loan types are best for those who expect to refinance or sell before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.80 percent would cost about $409 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Jumbo loan interest rate trends higher, +0.14%

The average jumbo mortgage rate is 3.73 percent, up 14 basis points from a week ago. This time a month ago, jumbo mortgages’ average rate was lesser, at 3.23 percent.

At today’s average jumbo rate, you’ll pay $461.41 per month in principal and interest for every $100k you borrow. That’s $13.48 higher compared with last week.

Rate review: How mortgage rates have shifted

  • 30-year fixed mortgage rate: 3.73%, up from 3.59% last week, +0.14
  • 15-year fixed mortgage rate: 3.09%, up from 2.92% last week, +0.17
  • 5/1 ARM mortgage rate: 2.80%, up from 2.76% last week, +0.04
  • Jumbo mortgage rate: 3.73%, up from 3.59% last week, +0.14

Interested in refinancing? See rates for home refinance

Current 30 year mortgage refinance rate moves up, +0.15%

The average 30-year fixed-refinance rate is 3.73 percent, up 15 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.22 percent.

At the current average rate, you’ll pay $461.41 per month in principal and interest for every $100,000 you borrow. That’s up $13.48 from what it would have been last week.

What factors determine my mortgage rate?

Lenders consider several items when pricing your interest rate:

  • Credit score
  • Down payment
  • Property location
  • Loan amount/closing costs
  • Loan type
  • Loan term
  • Interest rate type

Keep reading:

Featured lenders, January 27, 2022

Source

Leave a Reply

Your email address will not be published.