Thursday, June 3, 2021
Like yesterday, mortgage rates haven’t inched a bit, except for the 15-year fixed-term mortgage. It really looks like that lender is competing with each other and trying to keep rates low to close more loans. So without further ado, the mortgage rates, according to bank rate, for today are as follows:
- 30-year fixed mortgage: 3.100% for home purchase and 3.140% for refinance
- 15-year fixed mortgage: 2.370% for home purchase and 2.420% for refinance
- 5/1 ARM mortgage: 3.150% for home purchase and 3.010% for refinance
- 30-year fixed Jumbo mortgage: 3.120% for home purchase and 3.170% for refinance
As evident from the above list, there have been no changes in the rate, except for the 15-year fixed mortgage rate for home purchase and refinance rate for a 30-year jumbo mortgage. Apparently, the changes are also very insignificant because there is only a change of one basis point. Therefore, it won’t make much of a difference in your monthly payments.
Is It the Right Time to Get Loans?
While the rates may be appealing and may compel you to take out loans, there are several factors you should consider.
Firstly, home purchases are on the rise since the pandemic, so it may really cost a lot to purchase a home. Furthermore, the hike in prices may make property prices unaffordable to many individuals. Therefore, if you’re planning to purchase a property and take out a mortgage, you should consider checking the home prices.
Secondly, while it may seem that rates are low, and they really are low, you should consider the upfront costs involved with a mortgage application. It costs more than $1000 for upfront costs, and they might be high enough to make mortgages unaffordable for you. Moreover, closing costs associated with refinancing tend to be higher than a home purchase.
Since it’s a really great time to refinance, you must look into the closing costs associated with the mortgage. Nevertheless, if you want to lower the monthly payment burden, you should go on and take a mortgage. We would recommend you practice due diligence and shop around to find the best offer.
What Is the Trend of Different Mortgages?
30-year fixed mortgage
The rate is constant compared to yesterday. However, it’s one basis point higher than last week. It’s a very insignificant change and would add $0.55 to your monthly bills.
15-year fixed mortgage
Since yesterday, there has been a decline of one basis point, but there is no difference in the rates compared to last week.
5/1 ARM mortgage
There’s no change from yesterday, but the rate is up by one basis point from last week. So for a simple $100,000 loan, it would cost around $430 monthly payment for a 5/1 ARM mortgage for a fixed five years, after which the rate adjusts to market rates.
Compared to last week, the rate is up by two basis points, which means an extra of $1.08 to your monthly bills. It may become a burden over time. Therefore, if you’re looking to purchase a home with a high purchase value, consider getting the loan as soon as possible.
The rates are still flickering to the bottom, and as experts suggest, they might linger at 3% for the rest of the year. Still, there’s an uncertainty that they might rise soon. Nevertheless, if you want to close a mortgage and need a free personalized quote, consider visiting rate checker and build the house of your dreams.