A couple of important mortgage rates trended lower today. 15-year fixed and 30-year fixed mortgage rates both slumped. For variable rates, the 5/1 adjustable-rate mortgage also receded. Although mortgage rates are always moving, they are lower than they’ve been in years. For those looking to lock in a fixed rate, now is an optimal time to finance a house. But as always, make sure to first take into account your personal goals and circumstances before buying a house, and talk to multiple lenders to find a lender who can best meet your needs.
Find current mortgage rates for today
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 3.01%, which is a decrease of 3 basis points as seven days ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will usually have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.31%, which is a decrease of 3 basis points compared to a week ago. 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. However, if you can afford the monthly payments, there are several benefits to a 15-year loan. These include usually 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 3.02%, a fall of 4 basis points compared to last week. You’ll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. However, you could end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate. Because of this, an adjustable-rate mortgage could be a good option if you plan to sell or refinance your house before the rate changes. But if that’s not the case, you might be on the hook for a significantly higher interest rate if the market rates shift.
Mortgage rate trends
We use rates 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 across the country:
Today’s mortgage interest rates
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||3.01%||3.04%||-0.03|
|15-year fixed rate||2.31%||2.34%||-0.03|
|30-year jumbo mortgage rate||2.78%||2.80%||-0.02|
|30-year mortgage refinance rate||2.99%||3.01%||-0.02|
Rates accurate as of Sept. 13, 2021.
How to shop for the best mortgage rate
To find a personalized mortgage rate, speak to your local mortgage broker or use an online mortgage service. Make sure to consider your current finances and your goals when trying to find a mortgage. A range of factors — including your down payment, credit score, loan-to-value ratio and debt-to-income ratio — will all affect the interest rate on your mortgage. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider additional factors such as fees, closing costs, taxes and discount points. Be sure to comparison shop with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s the right fit for you.
What’s the best loan term?
One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are the same for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (typically five, seven or 10 years). After that, the rate adjusts annually based on the current interest rate in the market.
One factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your home. If you plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. However you could get a better deal with an adjustable-rate mortgage if you only have plans to keep your home for a few years. The best loan term all depends on an individual’s situation and goals, so be sure to consider what’s important to you when choosing a mortgage.