While a closely followed mortgage rate dropped, today rates had no specific trajectory. While 15-year fixed mortgage rates trended upward, interest rates on 30-year fixed-rate mortgages declined. For variable rates, the 5/1 adjustable-rate mortgage rose. Although mortgage rates fluctuate, they are lower than they've been in years. If you plan to buy a home, now might be an optimal time to secure a fixed rate. Before you buy a home, remember to think about your personal needs and financial situation, and speak with different lenders to find the best one for you.
Find current mortgage rates for today
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.06%, which is a decrease of 1 basis point as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one -- but often 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 2.42%, 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 bigger monthly payment. But a 15-year loan will usually be the better deal, if 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 ARM has an average rate of 3.12%, an uptick of 4 basis points compared to last week. With an ARM mortgage, you'll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, 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. Otherwise, changes in the market means your interest rate might be significantly higher once the rate adjusts.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the US:
Average mortgage interest rates| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed | 3.06% | 3.07% | -0.01 |
| 15-year fixed | 2.42% | 2.39% | +0.03 |
| 30-year jumbo mortgage rate | 2.80% | 3.00% | -0.20 |
| 30-year mortgage refinance rate | 3.10% | 3.14% | -0.04 |
Rates as of July 12, 2021.
How to find the best mortgage rates
To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. In order to find the best home mortgage, you'll need to consider your goals and current finances. Specific mortgage rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a higher credit score, a higher down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. Beyond the mortgage rate, additional costs including closing costs, fees, discount points and taxes might also affect the cost of your home. Make sure you speak with multiple lenders -- such as local and national banks, credit unions and online lenders -- and comparison shop to find the best mortgage for you.
What's the best loan term?
When picking a mortgage, remember to consider 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 set for the duration of the loan. For adjustable-rate mortgages, interest rates are set for a certain number of years (commonly five, seven or 10 years), then the rate adjusts annually based on the market rate.
When choosing between a fixed-rate and adjustable-rate mortgage, you should consider the length of time you plan to stay in your home. Fixed-rate mortgages might be a better fit if you plan on living in a home for quite some time. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable in the long term. However you could get a better deal with an adjustable-rate mortgage if you only intend 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. It's important to do your research and think about your own priorities when choosing a mortgage.
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July 12, 2021 at 08:00PM
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Current mortgage interest rates on July 12, 2021: Major rate eases - CNET
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