Mortgage Rates Today – June 18, 2020

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Now might be the time to lock in a mortgage, and here are some options to choose from.

Mortgage rates can fluctuate from week to week, and even day to day, so it is important to keep an eye on their situation. Rates have remained fairly stable this week, with the 30-year fixed rate moving slightly higher and the 15-year fixed rate and ARM 5/1 moving slightly lower. The 20-year fixed rate saw the biggest one-week change with an increase of 0.27%.

Term

Daily rate

APR

30-year fixed mortgage rate

3.5%

3.58%

20-year fixed mortgage rate

3.49%

3.59%

15-year fixed mortgage rate

2.87%

3.02%

ARM 5/1

3.33%

3.17%

The data source: Zillow.

30-year mortgage rates

The average interest rate for a 30-year fixed mortgage is 3.50%. For a $200,000 mortgage, that means you’re looking at a monthly payment of $1,457. Given that the average rate on a 30-year fixed loan was well over 4% in March, now is the time to lock in a long-term mortgage with a rate that won’t change over time.

20-year mortgage rates

The average interest rate for a 20-year fixed mortgage is 3.49%, which is comparable to the 30-year fixed mortgage. For a $200,000 mortgage, that means you’re looking at a monthly payment of $1,717 – higher than the monthly payment with a 30-year loan, although you’ll save money on interest due to a shorter repayment period. The average rate for a 20-year fixed mortgage was also well above 4% in March, so despite an increase over the past seven days, 3.49% is still competitive.

15-year mortgage rates

The average interest rate for a 15-year fixed mortgage is 2.87%, which is significantly lower than what you’ll pay for a 30- or 20-year fixed mortgage. In March, the average rate on a 15-year fixed loan was above 3.5%, so now might be the time to lock in a 15-year mortgage. For a $200,000 loan, you’re looking at a monthly payment of $1,927, but you’ll also pay less interest than for the same loan with a 20- or 30-year term.

RMA 5/1

The average interest rate for a 5/1 ARM is 3.33%, which means that a rate of 3.33% is guaranteed for the first five years of your mortgage, but from then on your rate will adjust once a year. It can adjust up, but it can also go down, depending on market conditions. The average rate for a 5/1 ARM is comparable to three months ago, but has been falling since early June.

Should I lock in a mortgage now?

A mortgage rate lock guarantees you a specific rate for a predefined period of time – usually 30 days, but sometimes you can lock your rate for up to 60 days. You’ll typically pay a fee for a mortgage rate lock, but in exchange, you’re protected against fluctuations that could make your monthly payments more expensive over time.

If you like the rate you’re seeing today and plan to close your home in the next two to four weeks, it might be beneficial to lock in your rate. However, if your close is more than two weeks away, you may want to choose a variable rate lock instead for what will usually be a higher, but potentially attractive fee. A variable rate lock lets you get a lower rate on your mortgage if rates drop before you close.

  • LOCK if closing seven days
  • LOCK if closing 15 days
  • LOCK if closing 30 days
  • FLOAT if closing 45 days
  • FLOAT if closing 60 days

Whatever decision you make, be sure to shop with different mortgage lenders to see what offers you qualify for. Each lender has their own borrowing terms, so the rate presented to you by one lender may differ from what another is willing to give you.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.

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