Mortgage rates dip for Friday June 2, 2017

Mortgage rates dip for Friday

LenderVolt

Friday, June 2, 2017

Multiple benchmark mortgage rates declined today. The average rates on 30-year fixed and 15-year fixed mortgages both dropped. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also dropped.

Mortgage rates change daily, but they remain low by historical standards. If you're in the market for a mortgage, it could make sense to lock if you see a rate you like. Just make sure you've looked around for the best rate first.

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30-year fixed mortgages

The average 30-year fixed-mortgage rate is 3.80 percent, down 2 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.93 percent.

At the current average rate, you'll pay principal and interest of $465.96 for every $100,000 you borrow. That's down $1.14 from what it would have been last week.

You can use our mortgage calculators (http://bit.ly/2rBlsAS) to get a handle on what your monthly payments would be and see what the effects of making extra payments would be. It will also help you calculate how much interest you'll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 3.02 percent, down 3 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $692 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 save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

5/1 ARMs

The average rate on a 5/1 ARM is 3.17 percent, ticking down 2 basis points since the same time last week.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.17 percent would cost about $431 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.

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   Source: Claes Bell, Bankrate.com