Today's best mortgage and refinance rates: Wednesday, December 16, 2020 - Business Insider

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It could be a good day to get a fixed-rate mortgage, but you probably don't want to apply for an ARM

The 30-year, 15-year, and 10-year refinance rates have all decreased by a few basis points since last Wednesday. Refinance rates are down overall since mid-November.charges a higher interest rate than a mortgage with a shorter term. You'll pay more in interest with a 30-year term than a 15-year term for two reasons: The interest rate is higher, and you'll pay interest for double the amount of time.

The good news is that your monthly payments are relatively low with a 30-year term. You're spreading payments out over a longer period of time, resulting in lower payments.is more affordable than a 30-year fixed-rate mortgage. The 15-year interest rates are lower, and you'll pay off the mortgage in half the time.

However, you'll pay more each month on a 15-year term than you would with a 30-year term. You're paying off the same amount in a shorter chunk of time, so your monthly payments are higher.The 10-year and 15-year fixed rates are pretty similar, but you'll own your home outright five years sooner with a 10-year term.

It isn't very common to get a 10-year term on an original mortgage, but you may refinance into a 10-year mortgage.An adjustable-rate mortgage keeps your rate the same for the first few years, then changes it annually. , your rate is locked in for the first five years, then your rate fluctuates once per year. Many lenders also offer 7/1 or 10/1 ARMs, but a 5/1 term is the most common type of ARM.. The 30-year fixed rates are comparable to or lower than ARM rates. It could be a good idea to lock in a low rate with a 30-year or 15-year fixed-rate mortgage rather than risk your rate going up later with an ARM.

 

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