Borrowers need to make an informed choice when choosing their mortgage


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Don’t end up taking out a mortgage you regret.

Over the past few months, mortgage rates have been rising rapidly – ​​and the interest rate on a 30-year loan may soon hit 5.00%. With rates rising, borrowers should ensure that they research loan options carefully to select a loan that is right for them.

Here’s what the average rates look like as of April 5, 2022:

Type of mortgage

Today’s interest rate

30-year fixed mortgage


20-year fixed mortgage


15-year fixed mortgage


ARM 5/1


The data source: The National Mortgage Interest Rate Tracker from The Ascent.

30-year mortgage rates

The average 30-year mortgage rate is now 4.837%. While this rate is higher than the average rate offered by other loans, including the 5/1 ARM as well as loans with shorter repayment terms, this mortgage comes with consistent monthly payments that are more affordable than loans in the shorter term. This might be the best option if you’re willing to pay more over time in exchange for a lower monthly payment.

20-year mortgage rates

The average 20-year mortgage rate is now 4.488%. The interest rate is lower than the 30-year loan, but the monthly payments are higher due to the shorter repayment time. If you are considering choosing this loan option to save over the term of the loan, make sure you can afford the monthly payment.

15-year mortgage rates

The average 15-year mortgage rate is now 3.976%. Again, although the rate is lower than longer term loans, the monthly payments will be significantly higher due to the reduced repayment time. Although you may be tempted to choose this loan because of the low rate, be sure that it would not put too much pressure on you to pay your monthly fees.

RMA 5/1

The average ARM rate of 5:1 is 3.819%. Since the rate on this type of loan is lower than a 30-year fixed rate loan, an ARM may seem tempting. However, you must remember that its rate is locked for only five years. After that time it might adjust and you might end up paying a lot more each month and over time.

Which mortgage is right for you?

While it’s tempting to look for the lowest possible rate, you need to have the big picture, including payment term, monthly payment, and whether your rates might change. This will help you choose the best mortgage for you. It’s also more important than ever to compare different loans from the best mortgage lenders, because you can’t afford to pay more than you need in this time of rising rates.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are, interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.


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