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Mortgage rates have changed slightly since last Wednesday, but not significantly. The 15-year refinance rates have decreased, while 30-year and 10-year refinance rates held pretty steady since last week.
Rates are low in general, so it could be a good time to lock in a low mortgage rate. You’ll probably get a better deal with a fixed-rate mortgage, not an adjustable-rate mortgage.
Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider that adjustable-rate mortgages are becoming less advantageous for borrowers. ARM rates are starting higher than fixed-rate mortgages, and you’d risk your rate increasing down the road. It’s probably better to lock in a historically low interest rate now with a fixed-rate loan.
If your finances are in a good place, consider refinancing or getting a fixed-rate mortgage soon.
The best mortgage rates Wednesday, November 11, 2020
| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 30-year fixed | 2.78% | 2.81% | 2.87% |
| 15-year fixed | 2.32% | 2.32% | 2.37% |
| 5/1 ARM | 2.89% | 2.88% | 2.89% |
Rates from the Federal Reserve Bank of St. Louis.
Mortgage rates have shifted slightly since last Wednesday. The 30-year fixed rates have gone down, 15-year fixed rates have stayed the same, and 5/1 adjustable rates have gone up. Since this time last month, fixed rates have decreased, and adjustable rates have held steady.
Overall, mortgage rates are low right now. The trend downward becomes more obvious when you look at rates from 6 months and a year ago:
| Mortgage type | Average rate today | Average rate 6 months ago | Average rate 1 year ago |
| 30-year fixed | 2.78% | 3.26% | 3.69% |
| 15-year fixed | 2.32% | 2.73% | 3.13% |
| 5/1 ARM | 2.89% | 3.17% | 3.39% |
Rates from the Federal Reserve Bank of St. Louis.
Several factors affect mortgage rates. Decreasing rates are usually a sign of a struggling economy. As the coronavirus pandemic and economic crisis continue, rates will likely stay relatively low.
The best refinance rates Wednesday, November 11, 2020
| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 30-year fixed | 3.18% | 3.19% | 3.18% |
| 15-year fixed | 2.58% | 2.72% | 2.59% |
| 10-year fixed | 2.59% | 2.58% | 2.63% |
Rates from Bankrate.
The 15-year refinance rates have decreased since last week, while rates for 30-year and 10-year mortgage refinance have stayed pretty steady, fluctuating by only a single basis point over the course of the week.
30-year fixed mortgage rates
You’ll pay a higher interest rate on a 30-year fixed mortgage than on a shorter-term fixed-rate mortgage. The 30-year fixed rates used to be higher than adjustable rates, but recently 30-year terms have been the better deal.
Monthly payments are relatively low for a 30-year term, because you’re spreading payments out over a longer period of time than you would with a shorter term.
You’ll ultimately pay more in interest with a 30-year term than you would for a 15-year mortgage, because a) the rate is higher, and b) you’ll be paying interest for longer.
15-year fixed mortgage rates
The 15-year mortgage rates are lower than 30-year mortgage rates. Between the lower rates and paying off the loan in half the time, you’ll pay less in the long run on a 15-year mortgage than on a longer term.
However, your monthly payments will be higher on a 15-year loan than on a 30-year loan. You’re paying off the same principal amount in a shorter amount of time, so you’ll pay more each month.
10-year fixed mortgage rates
A 10-year term isn’t super common for initial mortgages, but you might refinance into a 10-year mortgage.
The 10-year refinance rates are similar to 15-year rates, but you’ll pay off your mortgage earlier.
5/1 adjustable mortgage rates
With an adjustable-rate loan, your rate stays the same for the first few years, then changes periodically. Your rate is locked in for the first five years on a 5/1 ARM, then your rate increases or decreases once per year.
ARM rates are at all-time lows right now, but a fixed-rate mortgage is still the better deal. The 30-year fixed rates are comparable to or lower than ARM rates. It could be in your best interest to lock in a low rate with a 30-year or 15-year fixed-rate mortgage rather than risk your rate increasing later with an ARM.
If you’re considering an ARM, you should still ask your lender about what your individual rates would be if you chose a fixed-rate versus adjustable-rate mortgage.
Is it a good day to get a mortgage or refinance?
Refinance rates are low right now, so if your finances are strong, you may want to refinance in the next few weeks….
Read More: Today’s best mortgage and refinance rates: Wed, Nov 11, 2020 | Rates stay low