Mortgage rates dip this week

The average rate you’ll pay for a 30-year fixed mortgage is 4.44 percent, a decrease of 5 basis points over the last week. (Thinkstock)

Multiple benchmark mortgage rates were down today. The average rates on 30-year fixed and 15-year fixed mortgages both trended down. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also trended down.

Mortgage rates change daily, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it may be a great time to lock in a rate. Just make sure you’ve looked around for the best rate first.

30-year fixed mortgages

The average rate you’ll pay for a 30-year fixed mortgage is 4.44 percent, a decrease of 5 basis points over the last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.48 percent.

At the current average rate, you’ll pay principal and interest of $503.13 for every $100,000 you borrow. That’s $2.96 lower, compared with last week.

You can use a mortgage calculator to figure out your monthly payments and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 3.88 percent, down 4 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $734 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more quickly.

5/1 ARMs

The average rate on a 5/1 ARM is 4.22 percent, falling 5 basis points since the same time last week.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 4.22 percent would cost about $490 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Where rates are headed

Each week, Bankrate surveys experts in the mortgage field to see where they believe mortgage interest rates are headed. This week (June 20-June 26), 38 percent of the panelists believe mortgage rates will rise over the next week or so; 38 percent think rates will fall; and 23 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).

The “summer slide” has begun. Rates will continue to slowly inch higher throughout the year, said Derek Egeberg, certified mortgage planning specialist and branch manager, Academy Mortgage, Yuma, Arizona.