Mortgage interest rates as of Aug. 13, 2021: Rates increase

Mortgage interest rates as of Aug. 13, 2021: Rates increase

Mortgage interest rates as of Aug. 13, 2021: Rates increase

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Several major mortgage rates increased today. Average interest rates for 15- and 30-year fixed mortgages both climbed higher, while rates for 5/1 adjustable-rate mortgages also rose. Although mortgage interest rates always fluctuate, they’re currently lower than they’ve been in years. If you’re looking for a mortgage, now might be the right time to lock in a low fixed rate. Just be sure to review your personal financial situation and always compare home loans from different lenders to find the right one for your needs.

Check out mortgage rates that meet your distinct needs

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 3.04%, which is an increase of 8 basis points as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common 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 2.32%, which is an increase of 7 basis points from the same time last week. You’ll definitely have a larger 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. You’ll typically 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 3.06%, an addition of 9 basis points from seven days ago. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. But since the rate changes with the market rate, you could end up paying more after that time, as described in the terms of your loan. Because of this, an adjustable-rate mortgage might 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 rates collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders across the country:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 3.04% 2.96% +0.08
15-year fixed rate 2.32% 2.25% +0.07
30-year jumbo mortgage rate 2.81% 2.80% +0.01
30-year mortgage refinance rate 3.03% 2.94% +0.09

Updated on Aug. 13, 2021.

How to find the best mortgage rates

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. In order to find the best home mortgage, you’ll need to consider your goals and current finances. Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate. Apart from the mortgage rate, other factors including closing costs, fees, discount points and taxes might also affect the cost of your home. Be sure to talk to multiple lenders — such as local and national banks, credit unions and online lenders — and comparison-shop to find the best loan for you.

What’s the best loan term?

One important factor to consider 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. Mortgages are further divided into 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 stable for a certain number of years (typically five, seven or 10 years), then the rate adjusts annually based on the market interest rate.

One factor to think about when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on staying in your home. Fixed-rate mortgages might be a better fit for people who plan on living in a home for quite some time. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages can sometimes offer lower interest rates upfront. However, you might get a better deal with an adjustable-rate mortgage if you’re only planning to keep your home for a few years. The best loan term is entirely dependent on your specific situation and goals, so make sure to think about what’s important to you when choosing a mortgage.

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