Some closely watched mortgage rates fell today. Both 15-year fixed and 30-year fixed mortgage rates have slowed. The average rate of the most common type of variable rate mortgage, the 5/1 variable rate mortgage, has also fallen. Mortgage interest rates are never set in stone, but interest rates are at historically low levels. For those looking to get a fixed rate, now is the perfect time to buy a home. Before buying a home, consider your personal needs and financial situation, and compare offers from several lenders to find the one that’s right for you.
Consult the mortgage rates that meet your specific needs
30 year fixed rate mortgages
The average interest rate for a 30-year standard fixed mortgage is 3.23%, down 9 basis points from a week ago. (One basis point equals 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed-rate mortgage will usually have a lower monthly payment than a 15-year – but often a higher interest rate. While you will pay more interest over time – you pay off your loan over a longer period – if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15 year fixed rate mortgages
The average rate for a 15-year fixed mortgage is 2.47%, down 5 ba points from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. However, if you can afford the monthly payments, there are several advantages to a 15-year loan. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.
5/1 variable rate mortgages
A 5/1 adjustable rate mortgage has an average rate of 3.24%, down 11 basis points from seven days ago. With an ARM mortgage, you will typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, you could end up paying more after this period, depending on the terms of your loan and how the rate changes with the market rate. For borrowers who plan to sell or refinance their home before the rate changes, an adjustable rate mortgage might be a good option. Otherwise, changes in the market mean that your interest rate can be much higher after the rate is adjusted.
Mortgage rate trends
We use data collected by Bankrate, which is owned by the same parent company as, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders in the United States:
| Product | Rate | Last week | Change |
|---|---|---|---|
| Fixed over 30 years | 3,23% | 3,32% | -0,09 |
| 15- fixed year | 2,47% | 2,52% | -0,05 |
| 30-year jumbo mortgage rate | 3.14% | 3.12% | +0.02 |
| 30-year mortgage refinancing rate | 3.31% | 3.43% | -0.12 |
Prices as of March 26, 2021.
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How to buy the best mo mortgage rate
You can get a personalized mortgage rate by connecting with your local mortgage broker or by using an online calculator. In order to find the best mortgage loan, you will need to consider your goals and your overall financial situation. Factors that affect the mortgage interest rate you might get include: your credit score, your down payment, your loan-to-value ratio, and your debt-to-equity ratio. Typically, you want a good credit score, a larger down payment, a lower DTI, and a lower LTV to get a lower interest rate. Besides the mortgage interest rate, factors such as closing costs, fees, discount points, and taxes can also play a role in the cost of your home. Be sure to speak with multiple lenders – like local and state banks, credit unions, and online lenders – and compare with fi Find the best loan for you.
How does the term of the loan affect my mortgage?
When choosing a mortgage, you should consider the length of the loan or the payment schedule. The most commonly offered loan terms are 15 years and 30 years, although you can also find 10, 20 and 40 year mortgages. Mortgages are –
