Today’s Mortgage Rates: What You Need to Know
As of Monday, June 16, 2025, mortgage interest rates have dipped slightly, offering potential homebuyers a bit of relief. According to the latest data from Zillow, the average 30-year fixed mortgage rate now sits at 6.70%, while the 15-year fixed rate has decreased to 5.98%. With the Federal Reserve set to announce its decision on interest rates this Wednesday, many anticipate a hold on rates as the economy remains uncertain.
Current Mortgage Rates Snapshot
Here’s a quick look at the average mortgage rates based on Zillow data:
- 30-year fixed: 6.70%
- 20-year fixed: 6.25%
- 15-year fixed: 5.98%
- 5/1 ARM: 6.85%
- 7/1 ARM: 6.96%
- 30-year VA: 6.34%
- 15-year VA: 5.98%
- 5/1 VA: 6.38%
These rates represent national averages rounded to the nearest hundredth and may vary based on your location and financial profile.
Mortgage Refinance Rates
If you’re considering refinancing, here are the current refinance rates:
- 30-year fixed: 6.78%
- 20-year fixed: 6.37%
- 15-year fixed: 6.04%
- 5/1 ARM: 7.43%
- 7/1 ARM: 7.30%
- 30-year VA: 6.27%
- 15-year VA: 5.87%
- 5/1 VA: 7.43%
Be aware that refinancing rates typically run higher than purchase rates.
Building Your Budget: What Will You Pay?
For many, a 30-year mortgage is appealing due to lower monthly payments. For instance, on a $300,000 mortgage at 6.70%, expect a monthly payment of around $1,936, which adds up to over $396,900 in interest over the life of the loan.
On the other hand, a 15-year mortgage at 5.98% will raise your monthly payment to approximately $2,528, but you will only pay about $155,099 in interest. This underscores the trade-off between shorter terms with higher payments versus longer terms with more interest.
Understanding Adjustable-Rate Mortgages (ARMs)
If you’re considering an Adjustable-Rate Mortgage (ARM), know that your initial rate is typically lower than fixed rates. For example, a 5/1 ARM locks in your rate for five years before it adjusts annually. This option can be advantageous if you plan on selling your home before the rate adjusts. However, keep in mind that rates on ARMs are currently comparable to fixed rates.
Tips for Securing the Best Rate
To snag the best mortgage rates, remember:
- Higher down payments and stronger credit scores often yield lower rates.
- Consider paying down existing debt to improve your debt-to-income ratio.
- You can lower your rates further by purchasing discount points at closing, though ensure you’ll stay long enough to benefit from the reduced rate.
In summary, while the slight drop in mortgage rates is welcome news, the overall economic landscape suggests rates may not significantly decline in the near future. Staying informed and prepared will help you navigate the home-buying process effectively.
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Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.