Here are mortgage rates for July 20, 2021: Rates slide

Here are mortgage rates for July 20, 2021: Rates slide

Here are mortgage rates for July 20, 2021: Rates slide

Jeff Greenberg/Getty Images

Several significant mortgage rates decreased today. Average rates for both the 15-year and 30-year fixed rate mortgages dropped, while average rates for the 5/1 adjustable-rate mortgage also fell. While mortgage rates are always fluctuating, they’re currently lower than they’ve been in recent years. If you’re looking to lock in a low fixed rate, now might be the right time to buy a home. As always, consult your personal financial needs and goals before buying a home and always compare lenders to find the mortgage that’s right for you.

Compare countrywide mortgage rates from various lenders

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 2.98%, which is a decline of 5 basis points compared to 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 mortgage will usually have a greater 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 2.33%, which is a decrease of 4 basis points compared to a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. However, as long as you can afford the monthly payments, there are several benefits to a 15-year loan. These include usually 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 2.98%, a decrease of 5 basis points compared to 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. However, changes in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an ARM could make sense for you. 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 information 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:

Today’s mortgage interest rates

Loan term Today’s Rate Last week Change
30-year mortgage rate 2.98% 3.03% -0.05
15-year fixed rate 2.33% 2.37% -0.04
30-year jumbo mortgage rate 2.81% 2.82% -0.01
30-year mortgage refinance rate 2.99% 3.11% -0.12

Rates accurate as of July 20, 2021.

How to shop for the best mortgage rate

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. In order to find the best home mortgage, you’ll need to consider your goals and overall 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. Generally, you want a higher credit score, a larger 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 other factors such as fees, closing costs, taxes and discount points. Be sure to shop around with multiple lenders — including credit unions and online lenders in addition to local and national banks — in order to get a mortgage loan that’s best 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 and 30 years, although 10-, 20- and 40-year mortgages also exist. Another important distinction is between fixed- and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are stable for the life of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (typically five, seven or 10 years), then the rate changes annually based on the market rate.

When choosing between a fixed- and adjustable-rate mortgage, you should consider how long you plan to live 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 can sometimes offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However, you might get a better deal with an adjustable-rate mortgage if you only intend to keep your home for a couple years. The best loan term is entirely dependent on your personal situation and goals, so make sure to consider what’s important to you when choosing a mortgage.

Related Posts