Some important mortgage rates dropped off today. Average 15-year fixed mortgage rates are higher, while average 30-year fixed mortgage rates shrank. At the same time, average rates for 5/1 adjustable-rate mortgages declined. Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years. Because of this, right now is an ideal time for prospective homebuyers to get a fixed rate. But as always, make sure to first consider your personal goals and circumstances before purchasing a house, and compare offers to find the lender that can best meet your needs.
Find current mortgage rates for today
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 3.13%, which is a decline of 4 basis points as compared to 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 also 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 2.44%, which is an increase of 1 basis point from the same time last week. You’ll definitely have a bigger 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 can afford the monthly payments. 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 ARM has an average rate of 3.14%, a slide of 5 basis points from seven days ago. With an ARM mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. But you could end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage could be a good option. 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 data 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 country:
Today’s mortgage interest rates
Rates accurate as of June 25, 2021.
How to find personalized mortgage rates
You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. When looking into home mortgage rates, consider your goals and current finances. 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, other costs including closing costs, fees, discount points and taxes might also impact the cost of your house. You should comparison shop with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get the loan that’s best for you.
What is a good loan term?
When picking a mortgage it’s important to consider the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed 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 adjusts annually based on the current interest rate in the market.
When choosing between a fixed-rate and adjustable-rate mortgage, you should think about the length of time you plan to live in your home. Fixed-rate mortgages might be a better fit if you plan on staying 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 might get a better deal with an adjustable-rate mortgage if you only have plans to keep your home for a few years. There is no best loan term as a general rule; it all depends on your goals and current financial situation. It’s important to do your research and think about your own priorities when choosing a mortgage.