Mortgage Rates Mixed for Week of January 25

Average mortgage rates for a 30-year fixed rate mortgage (FRM) loan rose, but by only one basis point, to 5.42%, while rates for 15-year FRMs fell slightly, from 4.84% to 4.82%. Rates for 5/1 adjustable rate mortgage (ARM) loans also fell, from 4.65% to an average of 4.59%.

Lowest Mortgage Rates: Not the Only Consideration

When shopping for the lowest mortgage rates, remember that comparing closing costs, points, and lender fees is also important for finding your best overall deal on your next home loan. When reviewing purchase mortgage and home refinance quotes, check the annual percentage rate (APR) for each quote. If interest rates on your mortgage quotes are the same but the APRs differ, take a close look at estimated lender fees and closing costs. Although actual costs can vary depending on your credit, rate fluctuations, and other factors, comparing mortgage lenders' deals can help you find a good deal.

Mortgage Loans: Finding a Home Loan You Can Live With

How long do you plan to live in the home you're buying or refinancing? Your answer can help you focus on mortgage loans tailored to your needs. If your goal is paying off your mortgage early, a 15-year FRM can help you find the lowest mortgage rates and ultimately save you interest paid over time. The faster you pay off your mortgage, the less interest you pay, and savings can add up to thousands of dollars over your mortgage repayment term.

First-time buyers can select financing based on their plans over the next few years. If you're finishing graduate or professional school and are likely to move again when your dream job comes along, a 5/1 ARM can provide a low initial mortgage rate for the first few years. When considering ARM loans for a home you may sell after a few years, remember to check for prepayment penalties that can cost extra if you pay off your mortgage before a specified time period.

Our live database of current mortgage rates can help you find the best mortgage rates in your area.