Current mortgage rates – December 4: Rates increase slightly for most loans
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Mortgage rates Dec. 4 increased slightly on everything except the 20-year fixed rate loan. Here’s what you need to know about today’s average rates.
|Mortgage type||Interest rate of the day|
|30-year fixed mortgage||2.789%|
|20-year fixed mortgage||2.719%|
|15-year fixed mortgage||2.303%|
DATA SOURCE: NATIONAL MONITORING OF ASCENT MORTGAGE INTEREST RATES.
30-year mortgage rates
The average 30 year mortgage rate today is 2.789%, up 0.002% from average rate yesterday by 2.787%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $ 410 per $ 100,000 of mortgage debt. The total interest charge would be $ 47,712 per $ 100,000 borrowed over the term of the loan.
Discover The Ascent’s mortgage calculator to see what your monthly payment could be and how much your loan will ultimately cost. Also, find out how much money you would save by saving a lower interest rate, making a larger down payment, or choosing a shorter loan term.
20-year mortgage rates
The average 20-year mortgage rate today is 2.719%, down 0.001% from yesterday’s average rate of 2.720%. A loan at today’s mid-rate would carry a monthly principal and interest payment of $ 541 for every $ 100,000 borrowed. The total interest charge would be $ 29,753 per $ 100,000 borrowed at today’s average rate.
You will notice that you pay more per month but less total interest over time compared to the 30 year fixed rate loan. This is because you have a decade less to pay off your loan – and you also have to pay interest for 10 years less.
15-year mortgage rates
The average 15-year mortgage rate today is 2.303%, up 0.014% from yesterday’s average rate of 2.289%. You would consider a principal and interest payment of $ 658 per $ 100,000 borrowed at today’s average rate. For every $ 100,000 you borrow at today’s average rate, the total interest charge would be $ 18,360.
Much like the 20-year fixed rate loan, the 15-year alternative comes with higher monthly payments but lower total interest charges than mortgages with a longer repayment term.
The average ARM rate 5/1 is 3.646%, up 0.051% from yesterday’s average rate of 3.595%. With a 5/1 variable rate mortgage, your initial starting interest rate would only be guaranteed for the first five years. Since rates are near their all-time highs right now, there’s a good chance your rate will rise once it starts to adjust. You are better off with a fixed rate loan because fixed rate alternatives offer lower starting interest rates and you don’t have to worry about adjusting them up.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 30 days, although you can guarantee your rate for up to 60 days. You will usually pay a fee to lock in your mortgage rate, but this way you are protected in the event of a rate hike before your mortgage closes.
If you plan to close your home within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are very competitive. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your mortgage if rates drop before you close, and while rates today are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it is beneficial to:
- LOCK if closing 7 days
- LOCK if closing 15 days
- LOCK if closing 30 days
- FLOAT if closing 45 days
- FLOAT if closing 60 days
Before you lock in, you should get quotes from at least three of the best mortgage lenders to make sure you get a loan at the most competitive rate possible.
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