Some principal mortgage rates dwindled today. Fifteen-year fixed and 30-year fixed mortgage rates both sank. At the same time, average rates for 5/1 adjustable-rate mortgages also declined. Although mortgage rates are always moving, they are lower than they’ve been in years. If you plan to buy a house, now might be an excellent time to secure a fixed rate. Before you purchase a home, remember to take into account your personal needs and financial situation, and compare offers from multiple lenders to find the best one for you.
Compare nationwide mortgage rates from various lenders
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 3.07%, which is a decline of 4 basis points as seven days 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. 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 2.35%, which is a decrease of 5 basis points from seven days ago. 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, as long as you can afford the monthly payments. You’ll usually 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 ARM has an average rate of 3.09%, a downtick of 3 basis points from seven days ago. For the first five years, you’ll typically get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But you might end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an ARM may be a good option. Otherwise, shifts in the market means your interest rate could be a good deal higher once the rate adjusts.
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:
Today’s mortgage interest rates
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||3.07%||3.11%||-0.04|
|15-year fixed rate||2.35%||2.40%||-0.05|
|30-year jumbo mortgage rate||3.25%||3.26%||-0.01|
|30-year mortgage refinance rate||3.12%||3.16%||-0.04|
Rates accurate as of May 6, 2021.
How to find personalized mortgage rates
To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. In order to find the best home mortgage, you’ll need to take into account 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. Besides the mortgage rate, other factors including closing costs, fees, discount points and taxes might also factor into the cost of your house. Make sure you talk to several different 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?
When picking a mortgage, it’s important to consider 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. For fixed-rate mortgages, interest rates are set for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only stable for a certain amount of time (commonly five, seven or 10 years). After that, the rate fluctuates annually based on the market rate.
One important factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is how long you plan on staying in your home. For those who plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. However you might get a better deal with an adjustable-rate mortgage if you only have plans to keep your house for a few years. The “best” loan term all depends on your specific situation and goals, so make sure to think about what’s important to you when choosing a mortgage.