Mortgage rates today continued to fall for 30- and 15-year fixed loans, by 1 and 3 basis points, respectively. Meanwhile, 5/1 ARMs held steady, according to a NerdWallet survey of current mortgage rates published by national lenders Friday morning.
Borrowers who are looking for the stability of a fixed-rate loan but with a shorter repayment period should consider a 15-year fixed mortgage. While your monthly payments will be higher due to the shorter term, 15-year fixed loans come with a much lower interest rate compared to their 30-year counterparts, saving you on interest costs over the loan’s lifetime.
However, you’ll need to ensure your monthly budget can handle the higher fixed payments that come with a shorter-term mortgage. Keep in mind that a higher monthly payment could mean you can’t contribute as much to other financial goals, such as retirement and an emergency savings fund, as you could with a longer-term loan.
MORTGAGE RATES TODAY, friday, APRIL 14:
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Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.