A couple of closely followed mortgage rates climbed up today. 15-year fixed and 30-year fixed mortgage rates both moved higher. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also climbed higher.
Although mortgage rates are dynamic, they are at a historic low. Because of this, right now is a good time for prospective homebuyers to lock in a fixed rate. But as always, make sure to first consider your personal goals and circumstances before buying a home, and shop around for a lender who 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 3.27%, which is an increase of 5 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 usually 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 2.51%, which is an increase 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. 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 ARM has an average rate of 3.29%, a rise of 7 basis points compared to a week ago.
With an adjustable-rate mortgage mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. But shifts in the market might cause your interest rate to increase after that time, as detailed in the terms of your loan.
Because of this, an adjustable-rate mortgage could be a good option if you plan to sell or refinance your house before the rate changes. If not, shifts in the market may significantly increase your interest rate.
Mortgage rate trends
We use data collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the US:
|Loan type||Interest rate||A week ago||Change|
|30-year fixed rate||3.27%||3.22%||+0.05|
|15-year fixed rate||2.51%||2.47%||+0.04|
|30-year jumbo mortgage rate||3.07%||3.11%||-0.04|
|30-year mortgage refinance rate||3.36%||3.30%||+0.06|
Updated on April 5, 2021.
How to shop for the best mortgage rate
To find a personalized mortgage rate, speak to your local mortgage broker or use an online mortgage service. Make sure to consider your current financial situation and your goals when looking for a mortgage.
Specific mortgage 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.
Beyond the mortgage interest rate, factors including closing costs, fees, discount points and taxes might also impact the cost of your house. You should speak with multiple lenders — such as local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage for you.
What Is a good loan term?
When picking a mortgage, remember to consider the loan term, or payment schedule.
The most common loan terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist.
Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are fixed for the life of the loan. For adjustable-rate mortgages, interest rates are fixed for a certain number of years (typically five, seven or 10 years), then the rate changes annually based on the current interest rate in the market.
One important factor to think about when choosing between a fixed-rate and adjustable-rate mortgage is the length of time you plan on staying in your house. Fixed-rate mortgages might be a better fit if you plan on staying in a home for quite some time. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you aren’t planning to keep your new home for more than three to 10 years, though, an adjustable-rate mortgage may give you a better deal.
There is no “best” loan term as a rule of thumb; it all depends on your goals and your current financial situation. Be sure to do your research and understand what matters to you when choosing a mortgage.