A couple of important mortgage rates sank today. 15-year fixed and 30-year fixed mortgage rates both trended lower. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also fell. Mortgage interest rates are never set in stone, but interest rates are historically low. If you're looking to get a fixed rate, now is an excellent time to finance a home. Before you buy a house, remember to take into account your personal needs and financial situation, and shop around for various lenders to find the best one for you.
Compare nationwide home loan rates from various lenders
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.11%, which is a decline of 7 basis points from one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one, but typically a higher interest rate. 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 2.43%, which is a decrease of 1 basis point from seven days ago. You'll definitely have a higher monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the better deal, as long as 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 3.12%, a fall of 7 basis points compared to last week. With an ARM mortgage, you'll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. But 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. 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 might be on the hook for a much higher interest rate if the market rates change.
Mortgage rate trends
We use rates 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 across the US:
Current average mortgage interest rates| Loan type | Interest rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed rate | 3.11% | 3.18% | -0.07 |
| 15-year fixed rate | 2.43% | 2.44% | -0.01 |
| 30-year jumbo mortgage rate | 3.20% | 3.09% | +0.11 |
| 30-year mortgage refinance rate | 3.17% | 3.25% | -0.08 |
Updated on April 21, 2021.
How to find personalized mortgage rates
When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. Make sure to consider your current finances and your goals when searching for a mortgage. Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value 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. 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. You should shop around with multiple lenders -- for example, credit unions and online lenders in addition to local and national banks -- in order to get a loan that's best for you.
How does the loan term impact my mortgage?
When picking a mortgage, you should consider 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. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are the same for the duration of the loan. For adjustable-rate mortgages, interest rates are the same for a certain number of years (typically five, seven or 10 years), then the rate adjusts annually based on the market interest rate.
One factor to take into consideration when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your house. If you plan on staying long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages can sometimes offer lower interest rates upfront, fixed-rate mortgages are more stable over time. If you don't have plans to keep your new house for more than three to 10 years, however, an adjustable-rate mortgage could give you a better deal. The "best" loan term is entirely dependent on your situation and goals, so make sure to consider what's important to you when choosing a mortgage.
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April 21, 2021 at 06:00PM
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Current mortgage rates for April 21, 2021: Rates ease - CNET
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