Today’s mortgage rates for Sept. 29, 2021: Rates increase – CNET

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A handful of important mortgage rates increased today. 15-year fixed and 30-year fixed mortgage rates both climbed up. We also saw an inflation 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. Because of this, right now is an optimal time for prospective homebuyers to get a fixed rate. Before you purchase a home, remember to take into account your personal needs and financial situation, and shop around for multiple lenders to find the right one for you.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.13%, which is a growth of 8 basis points as seven days ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will often 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’re able to 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 ARM has an average rate of 3.15%, an increase of 8 basis points from seven days ago. For the first five years, you’ll typically get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed 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. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage might be a good option. But if that’s not the case, you may be on the hook for a significantly higher interest rate if the market rates change.

Mortgage rate trends

We use data 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 3.12% 3.03% +0.09

Rates as of Sept. 29, 2021.

How to find the best mortgage rates

To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. Make sure to think about your current financial situation and your goals when looking for a mortgage. A range of factors — including your down payment, credit score, loan-to-value ratio and debt-to-income ratio — will all affect your mortgage interest rate. 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. Aside from the interest rate, other factors including closing costs, fees, discount points and taxes might also factor into the cost of your house. Be sure to talk to multiple 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?

One important factor to consider when choosing a mortgage is the loan term, or payment schedule. The most common loan terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. 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 the same for a certain amount of time (most frequently five, seven or 10 years). After that, the rate adjusts annually based on the market rate.

One factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your house. For those who 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 in the long term. If you aren’t planning to keep your new house for more than three to 10 years, though, an adjustable-rate mortgage may give you a better deal. The best loan term all depends on an individual’s situation and goals, so make sure to consider what’s important to you when choosing a mortgage.

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