Average Rates for Various Loans
You are probably aware that mortgage rates change along with
interest. The annual percentage rate (APR) that you pay is determined
by the market and the points you pay upfront. If you have an adjustable-rate
mortgage it will probably be lower at first, as opposed to a fixed-rate
mortgage. Your down payment and length of the loan also determine
your interest rate. It varies mostly according to the type of
loan and the current national APR.
Rates go up and down constantly, but generally are only expected
to change .01 to .04 percent in the near future. To give you an
idea of interest rates, they will almost always fluctuate between
four and ten percent.
On November 21, 2004, the rates were between four and six percent
before points, depending on the type of loan. For a thirty-year
fixed loan, the APR before points was 5.42 percent. With a point
amount of .31, the APR would come to 5.54 percent. This would
probably only change .03 percent. In comparison, a 15-year fixed
loan on the same date would have an APR of 4.87 percent, and with
.34 points that would be 5.06 percent.
For 1/1 adjustable-rate mortgage (payments are fixed for one
year and then increase or decrease after that year) the rate was
3.83 percent, with .33 points that is an APR of 4.57 percent.
A 3/1 (Fixed for thee years, then adjustable) the APR before points
was 4.28 percent, and 4.47 percent after .34 points. For a 5/1
ARM this would come out to the same as the figure for a 30-year
fixed rate above.
Remember that these statistics are the US average, so they would
be slightly different depending on the area, the lender, the loan
and other considerations and so on.
There are too many factors to promise any specific APR, but a
fixed-rate mortgage will definitely give you a set rate as opposed
to adjustable rates that change with the market.