On Friday, the rates for mortgages increased slightly. Currently, the rate for 30-year fixed is at 4.94%, compared to 4.83% last week and 3.94% last year, which is still significantly higher than it used to be, and 10 basis points higher than last week’s rates.
For 30-year fixed mortgages at these current rates, you’ll be paying about $533 in principal and interest for every $100,000 borrowed, which is slightly worse than last week. Comparing with last year, you will make approximately $60 monthly more in mortgage payment for every $100,000 borrowed.
For 15-year fixed mortgages, the rate is 10 basis points more than last week’s at 4.33%.
The 5-1 Hybrid ARM looks the best, and is now at 4.14 percent. If you will not be holding the property for the long term, you will pay the least monthly payment by choosing this type of mortgage product.
As for the 5-1 ARMs, they’re not the most orthodox types of mortgages. They represent a 5-1 Hybrid, and that means that they begin your mortgage with 5 years of a fixed rate followed by an annual changing of adjustable rates. This means that the rates change per year after the first five, and judging by the current rates of rise, this plan may be actually great for this current phase in the market, as the rates will probably drop eventually.