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## Mortgage rates taper off for Tuesday – Bankrate.com

Multiple closely watched mortgage rates declined today. The average for a 30-year fixed-rate mortgage were down, but the average rate on a 15-year fixed advanced. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages declined.

Rates for mortgages change daily, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just be sure to shop around.

## 30-year fixed mortgages

The average rate you’ll pay for a 30-year fixed mortgage is 4.04 percent, a decrease of 5 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.33 percent.

At the current average rate, you’ll pay \$479.72 per month in principal and interest for every \$100,000 you borrow. That’s a decline of \$2.90 from last week.

You can use Bankrate’s mortgage calculator to figure out your monthly payments and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

## 15-year fixed mortgages

The average 15-year fixed-mortgage rate is 3.48 percent, up 2 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around \$714 per \$100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.

## 5/1 ARMs

The average rate on a 5/1 ARM is 3.99 percent, down 6 basis points over the last week.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.99 percent would cost about \$477 for each \$100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.