A few closely followed mortgage rates fell today. Average 15-year fixed mortgage rates climbed, while average 30-year fixed mortgage rates receded. For variable rates, the 5/1 adjustable-rate mortgage fell. Mortgage interest rates are never set in stone, but interest rates are at historic lows. If you plan to buy a house, now might be a great time to get a fixed rate. But as always, make sure to first take into account your personal goals and circumstances before purchasing a house, and shop around for a lender who can best meet your needs.
30-year fixed-rate mortgages
The average interest rate for a standard 30-year fixed mortgage is 3.17%, which is a decline of 2 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. A 30-year fixed mortgage will often 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 2.44%, which is an increase of 1 basis point 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. These typically include 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 3.17%, a slide of 4 basis points compared to last week. For the first five years, you'll usually get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But shifts in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. Because of this, an ARM could be a good option if you plan to sell or refinance your house before the rate changes. 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 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 | 3.17% | 3.19% | -0.02 |
| 15-year fixed rate | 2.44% | 2.43% | +0.01 |
| 30-year jumbo mortgage rate | 2.80% | 2.80% | N/C |
| 30-year mortgage refinance rate | 3.16% | 3.17% | -0.01 |
Updated on Oct. 19, 2021.
How to find the best mortgage rates
To find a personalized mortgage rate, meet with 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. Specific interest 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 larger down payment, a low DTI, a low LTV or any combination of those factors can help you get a lower interest rate. Apart from the mortgage rate, factors including closing costs, fees, discount points and taxes might also factor into the cost of your house. You should comparison shop with multiple lenders -- for example, credit unions and online lenders in addition to local and national banks -- in order to get a mortgage that works best for you.
What is a good loan term?
When picking a mortgage, remember to 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. Another important distinction is between 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 fixed for a certain number of years (usually five, seven or 10 years), then the rate fluctuates annually based on the current interest rate in the market.
One factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your house. Fixed-rate mortgages might be a better fit for people who plan on living in a home for quite some time. While adjustable-rate mortgages may offer lower interest rates upfront, fixed-rate mortgages are more stable in the long term. If you don't have plans to keep your new house for more than three to 10 years, though, an adjustable-rate mortgage could give you a better deal. There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Make sure to do your research and know your own priorities when choosing a mortgage.
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October 19, 2021 at 08:00PM
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Current mortgage rates for Oct. 19, 2021: Rates cool off - CNET
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