Today’s best mortgage and refinance rates: Mon, Nov 23, 2020 | Rates trend

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Mortgage rates and refinance rates are both down since last Monday. The exception is the 10-year fixed refinance rate, which has remained steady.

Rates are at historic lows overall. You’ll probably get a better deal with a fixed-rate mortgage than an adjustable-rate mortgage, though.

Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Business Insider that adjustable-rate mortgages are less advantageous for borrowers than they used to be. 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 Monday, November 23, 2020

Rates from the Federal Reserve Bank of St. Louis.

Mortgage rates are lower than they were last Monday, and they’re down since this time last month.

Mortgage rates are at historic lows overall. The gradual decrease 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 Monday, November 23, 2020

Rates from Bankrate.

The 10-year refinance rates haven’t changed since last Monday, but 30-year and 15-year refinance rates have decreased. Refinance rates have also gone down since this time last month.

30-year fixed-rate mortgages

A 30-year fixed mortgage charges a higher rate than a fixed-rate mortgage with a shorter term. For a long time, 30-year fixed rates were also higher than adjustable rates, but 30-year fixed mortgages are actually the better deal right now.

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

You’ll make higher monthly payments on a 30-year term than on a shorter term, because you’re spreading out payments over a longer period of time.

15-year fixed-rate mortgages

You’ll pay a lower rate on a 15-year mortgage than on a 30-year mortgage. Between the lower rates and paying off the loan in a shorter amount of time, you’ll pay less on a 15-year mortgage over the years.

Your monthly payments will be higher on a 15-year mortgage than on a 30-year mortgage, though. You’re paying off the same principal amount in half the time, so you’ll pay more each month.

10-year fixed-rate mortgages

A 10-year term isn’t very common for an initial mortgage, but you may refinance into a 10-year fixed mortgage.

The 10-year rates are similar to 15-year rates, but you’ll pay off the mortgage five years sooner.

5/1 adjustable-rate mortgages

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, then your rate will increase or decrease once per year.

ARM rates are relatively low right now, but fixed-rate mortgages are still the better deal. The…