Fixed Rate Mortgages State Employees’ Credit Union

Toolkits January 6, 2025

To understand today’s mortgage rates in context, take a look at where they’ve been throughout history. These rates are indicative and subject to change depending on market conditions and individual lender policies. Ultimately, the decision to choose a 10-year fixed-rate mortgage should be based on your personal circumstances, financial goals and priorities. It’s important to compare different mortgage products, speak to a financial advisor if necessary and consider the long-term implications of your choice. The website you are accessing is for clients of Credit Union Investment Services, Inc. (CUIS), an Investment Adviser registered with the State of North Carolina. CUIS offers investment advisory services to North Carolina residents.

Is a 10-year or 15-year mortgage better?

These data are available online at the consumer Financial Protection Bureau’s website (/hmda). HMDA data for many other Financial institutions are also available at this website. If a small rate increase would mean financial stress for your household, you may be better off with the certainty of a fixed rate loan. We offer a wide range of loan options beyond the scope of this calculator, which is designed to provide results for the most popular loan scenarios. If you have flexible options, try lowering your purchase price, changing your down payment amount or entering a different ZIP code.

Virgin Money 10-year fixed rate mortgage

Our editorial team does not receive direct compensation from advertisers. A home loan with an interest rate that remains the same for the entire term of the loan. This link takes you to an external website or app, which may have different privacy and security policies than U.S. We don’t own or control the products, services or content found there. Learn more about the differences between a 10-year ARM and a 15- or 30-year fixed-rate loan. “People are concerned that the risk of a hard landing has increased,” Liu said.

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• A good mortgage rate, which is usually represented as the lowest available rate for a 30-year fixed mortgage, will depend on the borrower.
• Because Rocket offers a wide variety of loan options — like programs compatible with down payment assistance, VA loans for military borrowers and Native American home loans — they have something for everyone.
• A fixed-rate mortgage is a loan whose interest rate remains unchanged throughout its lifespan.
• Buying mortgage points is another way to get a lower rate if your lender provides this option.
• That doesn’t mean you can’t whittle down the total interest payments.
• To find the average mortgage rates today, we use data from approximately 40 lenders, assuming a down payment of at least 20% and an applicant credit score in the 680–739 range.
• An open fixed-rate mortgage allows borrowers to pay down the principal balance before the loan’s maturity date without any additional fees and charges.
• But for a 10-year fixed-rate mortgage with an interest rate of 3.00%, the payment would be about $2,317.

But, since early 2022, mortgage rates have risen by a surprisingly large amount relative to the 10-year Treasury rates, putting more restraint on borrowing conditions and the housing market. Mortgage rates reflect the cost of using a mortgage to buy a home or tap home equity and thus affect the price of real estate and housing wealth. To the degree that the Federal Reserve’s tightening of monetary policy pushes up mortgage rates, this channel is an important way in which tighter monetary policy slows the economy and dampens inflation. As shown in figure 1, there has been a long downward trend in mortgage rates (dark green) over the past 40 years in line with the rate of 10-year Treasury bonds (light green). However, the spread between mortgage rates and Treasury bond rates fluctuates for various reasons, including changes in credit conditions and interest rate uncertainty. The increase in mortgage rates over the past couple of years, which has made buying a house or borrowing against home equity more expensive, in part reflects a broad increase in rates on long-term U.S.

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They also assume the loan is for a single-family home as your primary residence and you will purchase up to one mortgage discount point in exchange for a lower interest rate. Connect with a mortgage loan officer to learn more about mortgage points. A 10-year ARM loan is a variable-rate loan with an initial fixed-rate feature. After an initial 10-year period, the fixed rate converts to a variable rate.

The lowest 30-year mortgage rates ever

In environments where rates are suddenly low, lenders can profit from the higher interest payments made by borrowers on their fixed-rate home loans. These are usually referred to as balloon payment loans or interest-only loans. Lenders have some flexibility in how they can structure these alternative loans with fixed interest rates. Most mortgagors who purchase a home for the long term end up locking in an interest rate with a fixed-rate mortgage. They prefer these mortgage products because they’re more predictable.

• Learn more about how these rates, APRs and monthly payments are calculated.
• You can also use a mortgage calculator with taxes, insurance, and HOA dues included to estimate your total mortgage payment and home buying budget.
• Let’s look at a few examples to show how rates often buck conventional wisdom and move in unexpected ways.
• Rates on a jumbo mortgage are normally higher, too, because mortgage lenders have a higher risk of loss.
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• As shown in figure 1, there has been a long downward trend in mortgage rates (dark green) over the past 40 years in line with the rate of 10-year Treasury bonds (light green).
• Keep in mind that your rate will depend on several factors, including your credit score and your down payment amount.

Year FHA Mortgage Rate: Secondary Market (DISCONTINUED)

• One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500.
• That’s because the interest rate in a fixed-rate mortgage doesn’t change for every installment payment.
• A bank incurs lower costs and deals with fewer risk factors when issuing a 15‑year mortgage as opposed to a 30‑year mortgage.
• That figure marks a drop of more than a percentage point from a peak attained last year after the Federal Reserve hiked interest rates in an effort to fight inflation.
• However, those higher monthly payments could keep you from buying other things you need, or traveling as much as you’d like.

Remember that average mortgage rates are only a general benchmark. If you have good credit and strong personal finances, there’s a good chance you’ll get a lower rate than what you see in the news. For example, with a credit score of 580, you may qualify only for a government-backed loan such as an FHA mortgage. FHA loans have low interest rates, but come with mortgage insurance no matter how much money you put down. On November 17, 2022, Freddie Mac changed the methodology of the Primary Mortgage Market Survey® (PMMS®).

Additional mortgage resources

You’ll be investing in your own future, building equity, creating the life you want to live. But it’s vital that you compare mortgage terms before taking on any home loan. As you get ready to buy your first or next home, consider these tips to either afford more home or lower your costs dramatically. Unlike other loan terms, a 10-year mortgage loan allows you to save money on interest and fees, so you can build your home equity faster. Interest rates tend to drop when times are tough and the economy becomes sluggish. If you already have a fixed-rate mortgage, not much will change because your interest rate remains the same throughout the lifetime of your loan.

Pros & Cons of Fixed Rates

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How We Track the Best Mortgage Rates

Many lenders require a minimum of 5% to 20%, whereas others like government-backed ones require at least 3.5%. Macroeconomic factors kept the mortgage market relatively low for much of 2021. In particular, the Federal Reserve had been buying billions of dollars of bonds in response to the pandemic’s economic pressures. If you took out a $400,000 home loan with a 30-year fixed rate of 6.75%, you’d pay around $533,981 in total interest over the life of the loan. The same loan size with a 15-year fixed rate of just 5.75% would cost only $207,577 in interest — saving you around $326,404 in total.

Marc is senior editor at CNET Money, overseeing such topics as banking and home equity. He’s been a writer and editor in the financial field for more than two decades, including for such media organizations as The Kiplinger Washington Editors, U.S. News & World Report, Bankrate and Dow Jones. Before joining CNET Money, Wojno was Senior Editor of Finance for ZDNet, writing on blockchain, cryptocurrency, finserv, investing and taxes. Outside the digital world, Marc can be found spinning vinyl, threading reel-to-reel tapes, shooting film with his Bolex and hosting an occasional pub quiz.

Other factors, such as property prices, your current financial circumstances, and any long-term monetary goals you have, should also be considered. Rocket Mortgage offers some great perks, including a lender-paid credit for up to 1.25% of your loan amount if you use Rocket Homes to find your home and Rocket Mortgage to finance it. Because Rocket offers a wide variety of loan options — like programs compatible with down payment assistance, VA loans for military borrowers and Native American home loans — they have something for everyone. 10-year mortgage interest rates will likely remain steady in early 2025. The Federal Reserve cut the federal funds rate three times in 2024, but market watchers still expect 30-year mortgage rates to remain between 6% and 7% for most of 2025. But you might consider sticking with a longer-duration mortgage and paying extra each month instead.

AmeriSave’s website provides rates that are updated daily and that can be tailored to a borrower’s financial situation. Prequalify to see how much you might be able to borrow, start your application or explore 10-year adjustable-rate mortgage (ARM) rates and features. Our scoring formula weighs several factors consumers should consider when choosing financial products and services. Ten-year mortgage rates follow prevailing interest rates, which rose steadily from 2022 to peak in the fall of 2023.

• You can edit these amounts, or even edit them to zero, as you’re shopping for a loan.
• Your credit score, down payment, loan type, loan term, and loan amount will affect your mortgage or refinance rate.
• Interest rates tend to drop when times are tough and the economy becomes sluggish.
• In turn, the market could continue to suffer from a lack of supply, keeping home prices at elevated levels, said Fonseca, of the University of Illinois at Urbana-Champaign.
• Knowing exactly how much your monthly mortgage is going to be for the next decade, no matter what happens to the Bank of England base rate, is clearly attractive – but there is a premium to pay.
• Now that fixed rates are higher, borrowers may also want to consider adjustable-rate mortgages (ARMs), which fluctuate as market conditions change.

Most ARMs have a rate cap that limits the amount of interest rate change allowed during both the adjustment period (the time between interest rate recalculations) and the life of the loan. Lenders determine the mortgage rates they offer by reviewing overall economic conditions, as well as your individual financial profile. Overall economic conditions include factors like inflation and the rates set by the Federal Reserve. Personal financial profiles include credit scores and debt-to-income (DTI) ratios.

What are today’s mortgage rates?

The loan estimate (not applicable for HELOCs), provided within three days of receiving a completed application, estimates what closing costs you can expect. Unlike an interest rate, however, it includes other charges or fees (such as mortgage insurance, most closing costs, points and loan origination fees) to reflect the total cost of the loan. There’s no way to know what rates you’ll be paying once an adjustable-rate mortgage (ARM) loan adjusts, so comparing a fixed-rate loan to an ARM can be like comparing apples to oranges. One way you can compare them, though, is by diving into the fine print in your ARM’s loan estimate — an ARM lender is required to disclose the maximum percentage your interest rate can reach.

In the late 1990s, 10-year Treasury rates were moderately higher than today but, like today, the 7-year rate was higher than the 10-year rate. At that time, the estimated contribution of the duration adjustment and prepayment risk to the mortgage rates spread was roughly a half percentage point lower than today. The rates and monthly payments shown are based on a loan amount of $464,000 and a down payment of at least 25%. Learn more about how these rates, APRs and monthly payments are calculated.

For months, many observers have expected a “soft landing,” in which inflation returns to normal while the economy averts a recession. However, the steeper-than-expected cooldown of the labor market may indicate that the economy is headed toward a downturn after all, Liu said. “Mortgage rates are likely to come back down for the next several years.” Mortgage rates this week dropped to their lowest level in more than a year, delivering some long-sought relief for homebuyers. Argent Credit Union will never contact a member on an unsolicited basis and request their electronic banking credentials or any other form of personal identifiable information. (Debit card number, account number, Social Security Number, PIN or password).

Jeb Smith is a realtor and YouTube personality who has been in the real estate industry for over 20 years. He has a passion for helping clients achieve their real estate goals. His expertise spans various property types, including residential, commercial, and investment properties. Smith is also a proud member of the National Association of Realtors (NAR) and the Local Board of Realtors. There are several factors that can influence interest rates, like inflation, the bond market and the overall housing market.

“Depending on how far rates drop over the coming months, we could see pandemic levels of competition in the housing market as buyers waive inspections and contingencies to get a leg up on other homebuyers,” Horvat says. Maguire-Feltch explained there are multiple factors at play in setting home 10 year mortgage interest rates loan rates besides just how treasury yields are trending. Mortgage interest rates surged in the post-pandemic era, but borrowers saw some relief recently when rates plunged to a two-year low. However, that relief was fleeting, as a rate increase occurred in October after the September decline.

In December 2022, the Federal Reserve made the decision to dial down the pace of interest rate hikes, cutting the fed funds rate by only 50 basis points (0.50%). This trend of dialing back has persisted into 2023, evidenced by four adjustments of 25 basis points (0.25%) in January, March, May, and late July. Finally, in September 2024, the Federal Reserve made its first cut, resulting in the current federal funds rate sitting in a range of 4.75% to 5.00%. LoanDepot’s easy-to-use calculator puts you in charge of estimating your mortgage payment.

However, the monthly payment on the 10-year mortgage would be $529 higher. A mortgage is a type of loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments divided into principal and interest. Your credit score, down payment, loan type, loan term, and loan amount will affect your mortgage or refinance rate. LoanDepot has access to low fixed rate mortgage programs, and we can help make the process of refinancing or buying a home fast and easy. The rates and monthly payments shown are based on a loan amount of $940,000 and a down payment of at least 25%.