A few important mortgage rates went up today, including the average interest rates for both 15-year fixed and 30-year fixed mortgages. We also saw an uptick in the average rate of 5/1 adjustable-rate mortgages. Although mortgage rates fluctuate, they are quite low right now. If you plan to finance a house, now might be the time to secure a fixed rate. But as always, make sure to take into account your personal goals and circumstances before purchasing a home, and shop around for a lender who can best meet your needs.
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 3.27%, which is an increase of 10 basis points from one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage, which will usually have a higher interest rate than a 15-year fixed rate mortgage -- but also a lower monthly payment. 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 2.52%, which is an increase of 8 basis points compared to a week 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. The advantages are 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 3.28%, a climb of 11 basis points from the same time last week. You'll usually 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 may end up paying more after that time, depending on the terms of your loan and how the rate adjusts with the market rate. Because of this, an ARM may be a good option if you plan to sell or refinance your house before the rate changes. But if that's not the case, you could be on the hook for a significantly 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 daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Average mortgage interest rates
| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed | 3.27% | 3.17% | +0.10 |
| 15-year fixed | 2.52% | 2.44% | +0.08 |
| 30-year jumbo mortgage rate | 2.76% | 2.80% | -0.04 |
| 30-year mortgage refinance rate | 3.24% | 3.16% | +0.08 |
Rates as of Oct. 26, 2021.
How to find personalized mortgage rates
To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. When looking into home mortgage rates, think about your goals and current financial situation. Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. 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. The interest rate isn't the only thing that affects the cost of your home -- be sure to also consider fees, closing costs, taxes and discount points. Speak with a variety of lenders -- like 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 thing to keep in mind when choosing a mortgage is 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. 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. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (usually five, seven or 10 years). After that, the rate fluctuates annually based on the market interest rate.
One factor to consider when choosing between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your house. Fixed-rate mortgages might be a better fit for those who plan on staying in a home for a while. While adjustable-rate mortgages might have 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 intend to keep your house for a couple years. There is no best loan term as an overarching rule; it all depends on your goals and your current financial situation. Be sure to do your research and know what's most important to you when choosing a mortgage.
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October 26, 2021 at 08:00PM
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Current mortgage interest rates for Oct. 26, 2021: Rates go up - CNET
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