Mortgage interest rates for Jan. 14, 2022: Rates climb, but you can still get a good rate

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Some significant mortgage rates moved upwards today. Fifteen-year fixed and 30-year fixed mortgage rates both increased. For variable rates, 5/1 adjustable-rate mortgages also increased. Although mortgage rates are dynamic, they are lower than in years. For those who want to get a fixed rate, now is the best time to finance a home. Before buying a home, remember to think about your individual needs and financial situation, and compare offers from multiple lenders to find the best one for you.

30-Year Fixed Rate Mortgage

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The 30-year fixed-mortgage rate average stands at 3.51%, an increase of 8 basis points from a week ago. (One basis point equals 0.01%.) The most commonly used loan term is the 30-year term mortgage. A 30-year fixed rate mortgage will typically have a lower monthly payment than a 15-year — but often higher interest rate. Although you’ll pay more interest over time — you’ll be paying off your loan over a longer time frame — if you’re looking for lower monthly payments, a 30-year term mortgage may be a good option.

15-year fixed-rate mortgage

The average rate of fixed mortgage for 15 years is 2.83%, an increase of 14 basis points from a week ago. You will definitely get a larger monthly payment with a 15 year fixed mortgage as compared to a 30 year fixed mortgage, even though the interest rate and loan amount are the same. But generally a 15-year loan will be a better deal, as long as you are able to afford the monthly payments. These typically include being able to get a lower interest rate, paying off your mortgage sooner, and paying a lower total interest over the long run.

5/1 Adjustable-Rate Mortgage

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A 5/1 ARM has an average rate of 3.51%, an increase of 6 basis points from the week before. You’ll typically get a lower interest rate (compared to a 30-year term mortgage) with a 5/1 ARM for the first five years of the mortgage. But since the rate changes with the market rate, you may end up paying more after that time, as described in the terms of your loan. Because of this, an ARM can be a good option if you plan to sell or refinance your home before the rate changes. But if it isn’t, you could be on the hook for a significantly higher interest rate when market rates change.

mortgage rate trends

We use rates collected by Bankrate, which is owned by the same parent company as Nerdshala, to track these daily rate changes. This table summarizes the average rates offered by lenders across the United States:

Current Average Mortgage Interest Rates

loan type Rate of interest A week ago Change
30 year fixed rate 3.51% 3.43% +0.08
15 year fixed rate 2.83% 2.69% +0.14
30 year jumbo mortgage rate 2.75% 2.73% +0.02
30 Year Mortgage Refinance Rate 3.51% 3.44% +0.07
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Updated on 14 January 2022.

How to find the best mortgage rates

To find an individual mortgage rate, visit your local mortgage broker or use an online mortgage service. Be sure to think about your current financial situation and your goals when searching for a mortgage. A variety of factors, including your down payment, credit score, loan-to-value ratio and debt-to-income ratio – will all affect your mortgage interest rate. Generally, you want a high credit score, high down payment, low DTI and low LTV to get the low interest rate. The interest rate isn’t the only factor that affects the cost of your home. You should also consider other costs such as fees, closing costs, taxes and discount points. Be sure to shop around with several lenders in addition to local and national banks — including credit unions and online lenders — to get a mortgage that works best for you.

What is the best loan tenure?

When choosing a mortgage, you should consider the loan term, or payment schedule. Loan terms typically offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed rate and adjustable rate mortgages. Interest rates in a fixed rate mortgage are set for the term of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (usually five, seven or 10 years). After that, the rate is adjusted annually based on the market interest rate.

When deciding between a fixed-rate and an adjustable-rate mortgage, you should think about how long you plan to live in your home. For those who are planning to stay in a new home for a long time, a fixed rate mortgage can be a better option. While adjustable-rate mortgages may offer lower interest rates, fixed-rate mortgages tend to be more stable over a longer period of time. However, if you only plan on keeping your home for a few years, you may get a better deal with an adjustable-rate mortgage. The best loan term all depends on an individual’s situation and goals, so be sure to consider what is important to you when choosing a mortgage.

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