A few important mortgage rates moved downward today. The average interest rates for both 15-year fixed and 30-year fixed mortgages tumbled. We also saw a decline in the average rate of 5/1 adjustable-rate mortgages. Mortgage interest rates are never set in stone, but interest rates are the lowest they've been in years. For those looking to get a fixed rate, now is an optimal time to finance a home. Before you buy a home, remember to take into account your personal needs and financial situation, and compare offers from different lenders to find the best one for you.
Compare national mortgage rates from various lenders
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.03%, which is a decrease of 4 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 rate mortgage will usually have a smaller monthly payment than a 15-year one -- but typically a higher interest rate. 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 2.37%, which is a decrease of 2 basis points from the same time last week. 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, if you're able to afford the monthly payments. You'll most likely 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 3.03%, a decrease of 5 basis points compared to a week ago. You'll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But you could end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an ARM could be a good option. If not, changes in the market may significantly increase your interest rate.
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:
Average mortgage interest rates
| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed | 3.03% | 3.07% | -0.04 |
| 15-year fixed | 2.37% | 2.39% | -0.02 |
| 30-year jumbo mortgage rate | 2.82% | 3.01% | -0.19 |
| 30-year mortgage refinance rate | 3.11% | 3.14% | -0.03 |
Rates as of July 13, 2021.
How to shop for the best mortgage rate
To find a personalized mortgage rate, speak 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 overall financial situation. Factors that affect what 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 higher 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 costs including closing costs, fees, discount points and taxes might also affect the cost of your home. Make sure you talk to multiple lenders -- such as local and national banks, credit unions and online lenders -- and comparison-shop to find the best mortgage loan for you.
What's the best loan term?
When picking a mortgage, you should 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. Mortgages are further divided into fixed- 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 changes annually based on the current interest rate in the market.
When choosing between a fixed- and adjustable-rate mortgage, you should think about how long you plan to live in your home. Fixed-rate mortgages might be a better fit for those who plan on living in a home for a while. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However, you could get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a few years. The best loan term is entirely dependent on your situation and goals, so make sure to think about what's important to you when choosing a mortgage.
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July 13, 2021 at 08:00PM
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Current mortgage rates for July 13, 2021: Rates fall - CNET
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