Mortgage rates for April 22, 2021: Rates tick down – CNET

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A few notable mortgage rates slumped today. The average interest rates for both 15-year fixed and 30-year fixed mortgages were slashed. At the same time, average rates for 5/1 adjustable-rate mortgages also dropped lower. Although mortgage rates fluctuate , they are at a historic low. If you plan to buy a home, now might be an excellent time to get a fixed rate. But as always, make sure to first take into account your personal goals and circumstances before purchasing a home, and shop around to find a lender who can best meet your needs.

Find current mortgage rates for today

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 3.08%, which is a decline of 4 basis points from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan terms. A 30-year fixed mortgage will typically have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — 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 2.38%, which is a decrease of 4 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. But a 15-year loan will usually be the better deal, if you’re able to afford the monthly payments. These include typically being able to get a lower interest rate, paying off your mortgage sooner and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 3.07%, a slide of 5 basis points compared to last week. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. But you might end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage could make sense for you. Otherwise, shifts in the market means your interest rate might be a good deal higher once the rate adjusts.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders nationwide:

Today’s mortgage interest rates

Loan term Today’s Rate Last week Change
30-year mortgage rate 3.08% 3.12% -0.04
15-year fixed rate 2.38% 2.42% -0.04
30-year jumbo mortgage rate 3.24% 3.09% +0.15
30-year mortgage refinance rate 3.14% 3.17% -0.03

Rates accurate as of April 22, 2021.

How to find personalized mortgage rates

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. Make sure to consider your current finances and your goals when trying to find a mortgage. Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. Beyond the interest rate, factors including closing costs, fees, discount points and taxes might also impact the cost of your home. Make sure to comparison shop with multiple lenders — including credit unions and online lenders in addition to local and national banks — in order to get a loan that works best for you.

What is a good loan term?

One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are the same for the life of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (commonly five, seven or 10 years), then the rate fluctuates annually based on the market rate. 

When deciding between a fixed-rate and adjustable-rate mortgage, you should consider how long you plan to live in your home. If you plan on staying long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable over time. However you might get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a couple years. The “best” loan term is entirely dependent on an individual’s situation and goals, so be sure to consider what’s important to you when choosing a mortgage.

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