Current mortgage rate for Sept. 28, 2021: Rates move up – CNET

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A few significant mortgage rates inched up today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both trended upward. We also saw a rise in the average rate of 5/1 adjustable-rate mortgages. Although mortgage rates are always moving, they are lower than they’ve been in years. If you plan to finance a house, now might be a great time to lock in a fixed rate. But as always, make sure to first consider your personal goals and circumstances before buying a house, and compare offers to find a lender who can best meet your needs.

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 3.13%, which is a growth of 8 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. 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. 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 2.40%, which is an increase of 6 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 higher monthly payment. However, if you can afford the monthly payments, there are several benefits to a 15-year loan. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 3.15%, a rise of 9 basis points compared to a week ago. You’ll usually 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 may 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 ARM might 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 could be on the hook for a much higher interest rate if the market rates shift.

Mortgage rate trends

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track rates changes over time. This table summarizes the average rates offered by lenders nationwide:

Average mortgage interest rates

Product Rate Last week Change
30-year fixed 3.13% 3.05% +0.08
15-year fixed 2.40% 2.34% +0.06
30-year jumbo mortgage rate 2.79% 2.79% N/C
30-year mortgage refinance rate 3.11% 3.03% +0.08

Rates as of Sept. 28, 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. When researching home mortgage rates, think about your goals and current finances. Things that affect what mortgage interest rate you might get include your credit score, your down payment, your loan-to-value ratio and your debt-to-income ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate. 

Apart from the mortgage interest rate, other factors including closing costs, fees, discount points and taxes might also affect the cost of your house. You should talk to a variety of lenders — for example, local and national banks, credit unions and online lenders — and comparison-shop to find the best mortgage loan for you.

What is a good loan term?

When picking a mortgage, remember to consider the loan term, or payment schedule. The loan terms most commonly offered are 15 and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed- and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are fixed for the life of the loan. For ARMs, interest rates are stable for a certain number of years (usually five, seven or 10 years), then the rate fluctuates annually based on the market interest rate.

One important factor to take into consideration when choosing between a fixed- and adjustable-rate mortgage is the length of time you plan on living in your house. Fixed-rate mortgages might be a better fit for those who plan on staying in a home for a while. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable over time. If you aren’t planning to keep your new home for more than three to 10 years, however, an ARM might give you a better deal. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Make sure to do your research and know what’s most important to you when choosing a mortgage.

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