Today’s best mortgage and refinance rates: Fri, Nov 20, 2020 | Rates decrease

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Mortgage rates have gone down since last Friday. Refinance rates have fluctuated, with some rates increasing and some decreasing. Both mortgage and refinance rates have decreased since this time last month.

These days, you’ll probably get a better deal with a fixed-rate mortgage than an adjustable-rate mortgage.

Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider that adjustable-rate mortgages are becoming less beneficial for borrowers. ARM rates are starting higher than fixed-rate mortgages, and you’d risk your rate increasing down the road. It’s probably better to lock in a historically low interest rate now with a fixed-rate loan.

If your finances are in a good place, it could be a good time to get a fixed-rate mortgage or refinance.

The best mortgage rates Friday, November 20, 2020

Rates from the Federal Reserve Bank of St. Louis.

Mortgage rates have decreased since last Friday, and since this time last month.

Mortgage rates are at historic lows overall. The trend downward becomes more apparent when you look at rates from 6 months and a year ago:

Rates from the Federal Reserve Bank of St. Louis.

Several factors affect mortgage rates. Lower rates are usually a sign of a struggling economy. As the coronavirus pandemic and economic crisis continue, rates will likely stay relatively low.

The best refinance rates Friday, November 20, 2020

Rates from Bankrate.

Refinance rates have shifted a bit since last Friday. The 30-year rates and 15-year rates have decreased by 10 basis points and three basis points, respectively. The 10-year rates have remained the same. Refinance rates are down overall since this time last month.

How 30-year fixed rates work

A 30-year fixed mortgage comes with a higher interest rate than fixed-rate loans with shorter terms. For a long time, 30-year fixed rates were higher than adjustable rates. But right now, 30-year fixed rates the better deal.

Your monthly payments will be lower for a 30-year term than for a shorter term, because you’re spreading payments out over a longer period of time.

You’ll pay more in interest with a 30-year term than you would for a 15-year mortgage, because a) the rate is higher, and b) you’ll be paying interest for longer.

How 15-year fixed rates work

The 15-year mortgage rates are lower than 30-year mortgage rates. Between the lower rates and paying off the loan in half the time, you’ll pay less in the long run on a 15-year mortgage than on a longer term.

However, your monthly payments will be higher on a 15-year loan than on a 30-year loan. You’re paying off the same principal amount in a shorter amount of time, so you’ll pay more each month.

How 10-year fixed rates work

A 10-year term isn’t very common for an initial mortgage. Some lenders do offer 10-year mortgages, but it’s more likely you’ll refinance into a 10-year term.

Lenders charge similar interest rates on 10-year and 15-year fixed-rate mortgages, but you’ll pay off your home earlier with a 10-year mortgage.

How 5/1 ARMs work

An adjustable-rate mortgage, commonly referred to as an ARM, locks in your rate for the first few years, then changes it periodically. A 5/1 ARM keeps your interest rate the same for the first five years,…