October 28, 2016
If you've been thinking of refinancing your mortgage, now may be the time to do it, as the predicted increase in mortgage rates seems to have begun. Average rates for 15-year and 30-year fixed-rate home loans both rose this week, making monthly payments increasingly expensive.
The rate on 30-year fixed-rate mortgages rose to 3.49 percent, a climb of four basis points from last week. The rate is 0.09 percent higher compared to a month ago and equates to an extra $2.23 per $100,000 from last week, meaning that total interest and principal payments on each $100,000 are now $448.49.
Rates for 15-year fixed-rate home loans have grown even more, rising seven basis points from last week, to reach 2.77 percent, making the average monthly repayment $680 per $100,000 now. Although 15-year mortgages have larger monthly repayments than 30-year loans, the total interest over the lifetime of the mortgage is less. This makes it a cost-saving option for those who have the extra cash each month.
Fixed-rate mortgages are not the only loans to see movement â€“ 5-year adjustable-rate mortgages (ARMs) have also become more expensive. Over the past week, ARMs have increased by 2 basis points, meaning the current rate is now 3.03 percent. For now, monthly costs are $423 per $100,000 for the first five years, but this could rise by hundreds of dollars after the five-year period.
Tony Landaverde, Realtor with eXp Realty in San Antonio, Texas says "If you're undecided whether to buy now or wait, I suggest you contact a lender and see what you qualify for. With today's low interest rates, you might qualify to buy a bigger and better house now rather than next year even if you have a bigger down payment."
Thank you for this great article entitled "Mortgage Rates Start Rising" by David Stephens.
Presented by Tony Landaverde, Realtor
San Antonio, TX Realtor with eXp Realty
A Texas Licensed RealtorÂ® License #607299
For information on careers with eXp Realty click on the link: Tony Landaverde eXp Careers