Mortgage Rates Start Rising

New data shows increase in several mortgage rates

Mortgage Rates Start Rising
October 28, 2016

If you've been thinking of refinancing your mortgage, now may be the time to do it, as the predicted increase in mortgage rates seems to have begun. Average rates for 15-year and 30-year fixed-rate home loans both rose this week, making monthly payments increasingly expensive.

The rate on 30-year fixed-rate mortgages rose to 3.49 percent, a climb of four basis points from last week. The rate is 0.09 percent higher compared to a month ago and equates to an extra $2.23 per $100,000 from last week, meaning that total interest and principal payments on each $100,000 are now $448.49.

Rates for 15-year fixed-rate home loans have grown even more, rising seven basis points from last week, to reach 2.77 percent, making the average monthly repayment $680 per $100,000 now. Although 15-year mortgages have larger monthly repayments than 30-year loans, the total interest over the lifetime of the mortgage is less. This makes it a cost-saving option for those who have the extra cash each month.

Fixed-rate mortgages are not the only loans to see movement – 5-year adjustable-rate mortgages (ARMs) have also become more expensive. Over the past week, ARMs have increased by 2 basis points, meaning the current rate is now 3.03 percent. For now, monthly costs are $423 per $100,000 for the first five years, but this could rise by hundreds of dollars after the five-year period.

If you are interested in refinancing your home loan, visit the MoneyTips Mortgage Planner .

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