Major mortgage rates inched up today. The average interest rates for 15-year fixed, 30-year fixed and 5/1 adjustable-rate mortgages all increased. Still, mortgage interest rates remain relatively low overall. For those looking to secure a fixed rate, now is an optimal time to finance a home. 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.
Compare countrywide mortgage rates from various lenders
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.20%, which is an increase of 11 basis points from 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 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 2.50%, which is an increase of 3 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 larger monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. 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 3.23%, a climb of 10 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. However, since the rate shifts with the market, you may end up paying more after that time, as described in the terms of your loan. Because of this, an adjustable-rate mortgage may be a good option if you plan to sell or refinance your house before the rate changes. Otherwise, shifts in the market could leave your interest rate much higher once the rate adjusts.
Mortgage rate trends
We use information 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 | 3.20% | 3.09% | +0.11 |
| 15-year fixed rate | 2.50% | 2.47% | +0.03 |
| 30-year jumbo mortgage rate | 3.00% | 2.97% | +0.03 |
| 30-year mortgage refinance rate | 3.27% | 3.13% | +0.14 |
Rates accurate as of March 2, 2021.
How to Find the Best Mortgage Rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Make sure to take into account your current finances and your goals when looking for a mortgage. Things that affect the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV or any combination of these factors. Aside from the mortgage rate, things like closing costs, fees, discount points and taxes might also affect the cost of your home. You should speak with several different lenders -- including local and national banks, credit unions or online lenders -- and comparison shop to find the best loan for you.
What's the best loan term?
When picking a mortgage, it's important to consider 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 the same for a certain number of years (most frequently five, seven or 10 years), then the rate adjusts annually based on the current interest rate in the market.
One important factor to consider when choosing between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your home. If you plan on staying long-term in your new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer greater stability over time compared 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 plan to keep your home for a couple years. There is no "best" loan term as a rule of thumb; it all depends on your goals and your current financial situation. Make sure to do your research and understand what you want when choosing a mortgage.
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March 02, 2021 at 07:00PM
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Current mortgage rates for March 2, 2021: Rates move upward - CNET
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