Today’s mortgage refinance rates move higher | February 12, 2021 – Fox Business

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.

Check out the mortgage refinancing rates for February 12, 2021, which are up from yesterday. (iStock)

Based on data compiled by Credible Operations, Inc., NMLS Number 1681276, current mortgage refinance rates increased compared to yesterday’s. Though 20-year rates bumped up by 250 basis points today, 15-year rates have not budged from 2.125% in four consecutive days.

  • 30-year fixed-rate refinance: 2.750%, Unchanging
  • 20-year fixed-rate refinance: 2.750%, Up from 2.500%, +0.250
  • 15-year fixed-rate refinance: 2.125%, Unchanging

Rates last updated on February 12, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you’re interested in saving money on your monthly mortgage payments, or considering a cash-out refinance, Credible’s free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.

Current 30-year fixed-rate refinance

The current rate for a 30-year fixed-rate refinance is 2.750%. This is the same as yesterday.

Current 20-year fixed-rate refinance

The current rate for a 20-year fixed-rate refinance is 2.750%. This is up from yesterday.

Current 15-year fixed-rate refinance

The current rate for a 15-year fixed-rate refinance is 2.125%. This is the same as yesterday.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Rates last updated on February 12, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

How mortgage refinance rates have changed

Today, mortgage refinance rates have risen compared to this time last week.

  • 30-year fixed refinance: 2.750%, the same as last week
  • 20-year fixed refinance: 2.750%, up from 2.625% last week, +0.125
  • 15-year fixed refinance: 2.125%, up from 1.875% last week, +0.250

Think it might be the right time to refinance? To understand just how much you could save on monthly mortgage payments by refinancing now, crunch the numbers and compare rates using Credible’s free online tool. Within minutes, you can see what multiple mortgage refinance lenders are offering.

Rates last updated on February 12, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

The factors behind today’s refinance rates

Current refinance rates, like mortgage interest rates in general, are affected by many economic factors, like unemployment numbers and inflation. But your personal financial history will also determine the rates you’re offered when refinancing your mortgage.

Larger economic factors

  • Strength of the economy
  • Inflation rates
  • Employment
  • Consumer spending
  • Housing construction and other market conditions
  • Stock and bond markets
  • 10-year Treasury yields
  • Federal Reserve policies

Personal economic factors

  • Credit score
  • Credit history
  • Down payment size
  • Loan-to-value ratio
  • Loan type, size, and term
  • Debt-to-income ratio
  • Location of the property

How to get your lowest mortgage refinance rate

If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you’re hoping to refinance, so you can find the best rate for your situation.

Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac. Credible can help you compare multiple lenders at once in just a few minutes.

If you decide to refinance your mortgage, be sure to shop around and compare rates from multiple mortgage lenders. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible’s partner here. It’s fast, easy, and the whole process can be completed entirely online.

Mortgage rates by loan type

Whether you’re a first-time homebuyer shopping for mortgage loans, or you’re seeking lower monthly payments on an existing home, Credible can help you keep an eye on current mortgage rates and find the right loan for your financial goals.

Be sure to check out these loan rates, which you’ll be able to compare by annual percentage rate (APR) as well as interest rate:

More resources on mortgage refinance

Want to learn more about refinancing your home loan? Take a look at the following articles:

Source: foxbusiness.com

Mortgage Rates Today, Feb. 13 & Rate Forecast For Next Week – The Mortgage Reports

Today’s mortgage and refinance rates 

Average mortgage rates edged higher yesterday. There have been a lot of small, daily ups and downs recently. But they’ve generally canceled each other out. And Freddie Mac’s weekly averages haven’t moved at all over the last three reports.

Of course, there’s always a chance that rates will rise or fall suddenly and sharply. But it’s hard to spot a reason why they should this week. And that means the danger of continuing to float your rate may be lower than normal. But it also means the potential rewards of doing so may be lower, too.

Monday is Presidents’ Day. And US markets are closed. So our daily report will be back on Tuesday.

Find and lock a low rate (Feb 20th, 2021)

Program Mortgage Rate APR* Change
Conventional 30 year fixed 2.79% 2.793% +0.01%
Conventional 15 year fixed 2.363% 2.372% Unchanged
Conventional 20 year fixed 2.825% 2.832% +0.08%
Conventional 10 year fixed 2.321% 2.378% Unchanged
30 year fixed FHA 2.517% 3.187% +0.01%
15 year fixed FHA 2.385% 2.965% +0.07%
5 year ARM FHA 2.5% 3.207% Unchanged
30 year fixed VA 2.093% 2.263% +0.01%
15 year fixed VA 1.88% 2.198% Unchanged
5 year ARM VA 2.5% 2.386% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Find and lock a low rate (Feb 20th, 2021)


COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To see the latest on how coronavirus could impact your home loan, click here.

Should you lock a mortgage rate today?

If I were currently floating my rate, I probably would lock it today or soon. That’s for two reasons. First, the possibility of a sudden, sharp rise never goes away, though it currently looks unlikely.

And, secondly, the chances of my gaining much from continuing to float look too low to make the gamble worthwhile. Of course, the possibility of a sudden fall is always there. But it’s roughly as improbable as a sudden rise.

So my recommendation is to lock if you’re closing within 30 days of closing.

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So be guided by your gut and your personal tolerance for risk.

Compare top lenders

What’s moving current mortgage rates

We’ve already established that nothing much is moving current mortgage rates. They’re barely moving at all.

Of course, they’ll set off decisively one day. But precisely when is impossible to predict. Indeed, even the direction they’ll take is uncertain.

Risk of big falls

Yesterday, the S&P 500 and Nasdaq stock indexes closed at record highs. It’s been clear for a long time that the stock market generally has become increasingly divorced from economic reality.

Of course, those who make these markets would claim that they’re looking ahead to a rosy future in the medium or long term. But they have lousy records as soothsayers. And markets’ current highs are based on “confidence,” which is code for faith-based trading.

Stock market overvalued?

Also yesterday, the Federal Reserve Board revealed the “hypothetical scenarios for its 2021 bank stress tests.” And they included “asset prices dropping sharply, including a 55 percent decline in equity prices.”

Now, obviously, the Fed isn’t predicting a 55% slump in stock prices. But it takes the possibility of a significant fall seriously enough to make banks prove they could survive such an event.

And any such fall would likely drag down mortgage rates. Those who got out of the stock market would need to put their remaining money somewhere. And they’d want to buy safe or safer assets, including US Treasury bonds and mortgage-backed securities. Such extra demand would push up prices, which — as a mathematical certainty — would drive down yields and mortgage rates.

And those lower rates aren’t dependent on a stock market slump. They tend to go hand-in-hand with economic distress, which is why they’re so low at the moment. So any worsening of the economy could produce lower mortgage rates, even if the stock market continues to defy gravity.

Risk of big rises

Most economists think the economy will improve as the vaccination drive gains traction and the pandemic recedes. And that should bring higher mortgage rates. That’s probably the most likely scenario at the moment.

However, it could be months before a firm upward trend emerges. And, even then, it may be a gradual one. But, inevitably, there’s a possibility of it not happening at all.

For example, COVID-19 already has several mutations. And, were a future one to prove resistant to vaccines, that could undermine or slow the economic recovery, something that would likely bring lower mortgage rates.

All the above is a roundabout way of saying that there’s even less certainty about the future than normal. And we may one day look back on this period, when mortgage rates are becalmed, with fond nostalgia.

Economic reports next week

The big economic report next week is Wednesday’s retail sales. The others would have to be stunningly good or bad to move mortgage rates far.

Here are next week’s main economic reports:

  • Wednesday — January retail sales, plus industrial production and capacity utilization. Also January producer price index, a predictor of inflation
  • Thursday — Weekly new claims for unemployment insurance. Plus January housing starts and housing permits
  • Friday — January existing home sales

More important than these economic reports is likely to be any legislative progress or setbacks encountered by the administration’s $1.9 trillion pandemic relief package, currently making its way through Congress. Successes may mean higher rates while failures lower ones.

Find and lock a low rate (Feb 20th, 2021)

Mortgage interest rates forecast for next week

Just as over the last couple of weeks, there’s little reason to expect sharp changes in mortgage rates this week. They’ll probably continue to move up and down just a little, going nowhere fast.

Mortgage and refinance rates usually move in tandem. But note that refinance rates are currently a little higher than those for purchase mortgages. That gap’s likely to remain constant as they change.

How your mortgage interest rate is determined

Mortgage and refinance rates are generally determined by prices in a secondary market (similar to the stock or bond markets) where mortgage-backed securities are traded.

And that’s highly dependent on the economy. So mortgage rates tend to be high when things are going well and low when the economy’s in trouble.

Your part

But you play a big part in determining your own mortgage rate in five ways. You can affect it significantly by:

  1. Shopping around for your best mortgage rate — They vary widely from lender to lender
  2. Boosting your credit score — Even a small bump can make a big difference to your rate and payments
  3. Saving the biggest down payment you can — Lenders like you to have real skin in this game
  4. Keeping your other borrowing modest — The lower your other monthly commitments, the bigger the mortgage you can afford
  5. Choosing your mortgage carefully — Are you better off with a conventional, FHA, VA, USDA, jumbo or another loan?

Time spent getting these ducks in a row can see you winning lower rates.

Remember, it’s not just a mortgage rate

Be sure to count all your forthcoming homeownership costs when you’re working out how big a mortgage you can afford. So focus on your “PITI” That’s your Principal (pays down the amount you borrowed), Interest (the price of borrowing), (property) Taxes, and (homeowners) Insurance. Our mortgage calculator can help with these.

Depending on your type of mortgage and the size of your down payment, you may have to pay mortgage insurance, too. And that can easily run into three figures every month.

But there are other potential costs. So you’ll have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repairs and maintenance costs. There’s no landlord to call when things go wrong!

Finally, you’ll find it hard to forget closing costs. You can see those reflected in the annual percentage rate (APR) you’ll be quoted. Because that effectively spreads them out over your loan’s term, making that higher than your straight mortgage rate.

But you may be able to get help with those closing costs and your down payment, especially if you’re a first-time buyer. Read:

Down payment assistance programs in every state for 2020

Compare top lenders

Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.

Source: themortgagereports.com

4 reasons mortgage rates could drop further this year – Fox Business

As mortgage rates decline, there’s more incentive to buy or refinance a home loan. (iStock)

While the coronavirus pandemic has financially sideswiped millions of Americans, there is something of a silver lining: current mortgage rates are declining — and homeowners and home buyers alike can save big.

Mortgage interest rates have hovered near historic lows for much of 2020 thanks to Federal Reserve policies designed to bolster the economy. If you’re a prospective home buyer or a homeowner who’s interested in a refinance loan, a rates drop can translate to significant savings (and lower monthly payments).

You can visit Credible to compare mortgage rates from different mortgage lenders, without affecting your credit. And you can also visit Credible to learn more about mortgage refinancing options.

In the meantime, here’s a closer look at why the lower interest rates trend may continue this year.

Today’s mortgage rates

According to Freddie Mac data for the week of October 22nd, mortgage rates are on a flattening trend, with very little change from the previous week.

  • 30-year fixed-rate mortgage: 2.8%
  • 15-year fixed-rate mortgages: 2.33%.
  • 5/1 Adjustable Rate Mortgage (ARM) rate: 2.87%. 

Year-over-year, mortgage rates are down 0.95 basis points for 30-year fixed-rate loans, 0.85 basis points for 15-year fixed-rate loans, and 0.53 basis points for 5/1 ARM loans. The current rate trend could be chalked up to a slowdown in the economic recovery.

If you’re looking to take advantage of low refinance rates to lower your monthly payments and cut the life of your home loan, then use a rate-shopping site like Credible to compare mortgage lenders before you refinance your mortgage.

RENT OR BUY? HOW THE FED’S MORTGAGE RATE CHANGES CAN HELP YOU DECIDE

Will mortgage rates keep dropping?

Here are some key reasons why you could continue to see below average rates for mortgages and refinance loans in the coming months:

  1. Consumer debt is shrinking
  2. Bank deposits are increasing
  3. Adverse market fee delayed
  4. The Federal Reserve is committed to keeping rates low 

MORTGAGE RATES DROP, HOUSING MARKET REMAINS ‘STRONG’ AMID CORONAVIRUS CRISIS

1. Consumer debt is shrinking

One reason the mortgage rates decline could be here to stay for the short-term has to do with borrower demand. If Americans are inclined to borrow less, that could be an incentive to keep rates low to encourage new mortgages and other loans.

According to Federal Reserve data, total household debt declined for the first time since 2014 during the second quarter of 2020. Americans are making a dent in balances for credit cards, student loans, car loans and other debts, which may help curb mortgage rates through the fall.

Credible can help you compare lenders and save on interest without impacting your credit score. You can complete the entire origination process — from comparing loan rates up to closing — all in one place.

GET THE BEST MORTGAGE RATES BY FOLLOWING THESE 5 STEPS

2. Bank deposits are increasing

While Americans are paying off debts, they’re also stashing more of their money in the bank. The Federal Deposit Insurance Corporation (FDIC) reported increased bank liquidity levels through the first and second quarters of 2020, with bank deposits increasing by more than $1 trillion.

That means banks have more capital to lend to borrowers who are looking to get a home loan right now. If you have a strong credit history and credit score, you could reap the benefits of that by cashing in on low mortgage rates.

SHOULD YOU PAY POINTS TO LOWER YOUR MORTGAGE RATE?

3. Adverse market fee delayed

Earlier this year, the Federal Housing Finance Agency (FHFA) announced it would implement an adverse market fee on new mortgage refinance loans. While mortgage lenders are responsible for the fee, it’s been suggested that the fee could be passed on to homeowners in the form of higher refinance rates. The Mortgage Bankers Association estimated it would increase the average cost of refinancing by $1,400.

The fee, which was set to take effect September 1, has been delayed to December 1, giving you more time to refinance your mortgage if you already own a home. That means banks have less incentive to raise mortgage rates until the fee takes effect.

18M HOMEOWNERS MISSING OUT ON MORTGAGE REFINANCE SAVINGS, STUDY SAYS

4. The Federal Reserve is committed to keeping rates low 

The Federal Reserve sets the federal funds rate doesn’t affect conventional mortgage rates directly but banks can take their cue from the Fed when it comes to deciding whether to lower interest rates.

When inflation is low, as it is now, banks can cut mortgage rates to encourage borrowing. In an October speech at the National Association for Business Economics Virtual Annual Meeting, Fed chairman Jerome Powell reiterated his decision to keep the federal funds rate low for the time being. Earlier this year, Powell suggested that rates could remain low for at least another two years into 2023.

If you’re a homeowner, compare mortgage rates with Credible to see if you can save, but don’t forget about closing costs, which could neutralize any savings you gain from a lower monthly payment.

IS NOW A GOOD TIME TO REFINANCE YOUR MORTGAGE?

How to take advantage of low mortgage rates

With a mortgage rates decline likely to stick around for a while, that could be an opportunity to get a great deal on a home loan if you’re tired of renting and ready to buy. If you haven’t checked your credit history and credit score lately, you may want to do that first. From there, you can use an online mortgage calculator to estimate your monthly payments.

You can also run the numbers through a mortgage refinance calculator to determine how much you could save with a refinance loan.

Whether your financial goals include buying a home or refinancing your mortgage, it helps to work with a professional. Connect with Credible’s experienced loan officers today to get all of your home buying and refinancing questions answered.

Source: foxbusiness.com

30-Year Mortgage Rates | See Today’s 30-Year Fixed Rates – The Mortgage Reports

What are today’s 30-year mortgage rates?

Today’s 30-year mortgage rates start at 2.875% (2.875% APR) according to The Mortgage Reports’ daily rate survey.

However, your own interest rate will likely be different. Actual rates are based on your credit score, down payment, loan type, and other personal factors. Be sure to shop around and find the best deal for you.

Check your 30-year mortgage rates (Feb 17th, 2021)

30-year fixed mortgage rates for February 17, 2021

Program Mortgage Rate APR* Change
Conventional 30 year fixed 2.987% 2.987% +0.12%
30 year fixed FHA 2.612% 3.591% +0.12%
30 year fixed VA 2.495% 2.668% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Are 30-year mortgage rates going up or down?

Mortgage rates are staying near historic lows. But they can tick up or down on a daily basis — some days more than others.

These movements can be hard to predict because they’re driven by the broader economy and investors’ interest in buying mortgages.

See how current mortgage interest rates are trending on the 30-year mortgage rates chart below.

Check your 30-year mortgage rates (Feb 17th, 2021)

How a 30-year fixed-rate mortgage works

As its name implies, a 30-year fixed-rate mortgage or ‘FRM’ is repaid over a period of 30 years.

This is the most popular mortgage loan product in the U.S., thanks to a few key benefits:

  • The interest rate and payment for a 30-year FRM are ‘fixed,’ meaning your rate and monthly payment will never change unless you decide to refinance the loan
  • A 30-year mortgage has lower monthly payments than a shorter-term loan (like a 15-year FRM) because your loan amount is repaid over a longer time
  • 30-year fixed-rate loans are available for all major loan types (conventional, FHA, and USDA), and from all mainstream lenders

Most home buyers can get a 30-year fixed home loan with a down payment of just 3% or 3.5%. And you don’t need a perfect credit score to qualify.

Thanks to these perks — and today’s low interest rates — 30-year mortgages are an affordable path to homeownership for many.

Check your eligibility for a 30-year mortgage (Feb 17th, 2021)

How do 30-year mortgage rates compare to other loan types?

Today’s 30-year mortgage rates — like all current rates — are lower than they’ve been in most of U.S. history.

Even so, 30-year mortgage rates often look higher than other rates you’ll see advertised.

You can generally find lower mortgage interest rates if you opt for:

  • A shorter-term loan– Shorter-term home loans (like 10-, 15-, and 20-year FRMs) have lower rates than 30-year FRMs because investors don’t hold the “risk” of carrying your debt for as long. However these loans have much higher payments, since you’re repaying the same amount of money over a shorter time period
  • An adjustable-rate mortgage – Adjustable-rate mortgages have a fixed interest rate for the first few years. Then, the rate can change with the market. These loans typically offer lower introductory rates (the ones you see advertised) than 30-year loans. But that rate could rise later on, so you lower mortgage payment is not guaranteed to continue

Despite their slightly higher rates, most borrowers opt for a 30-year fixed mortgage over a 15-year FRM or an adjustable-rate mortgage.

The stability and predictability that come with fixed rates and low payments are hard to beat.

Verify your 30-year mortgage eligibility (Feb 17th, 2021)

Compare today’s 30-year mortgage rates

Program Mortgage Rate APR* Change
Conventional 30 year fixed 2.987% 2.987% +0.12%
Conventional 15 year fixed 2.495% 2.495% +0.06%
Conventional 5 year ARM 3% 2.743% Unchanged
30 year fixed FHA 2.612% 3.591% +0.12%
15 year fixed FHA 2.5% 3.442% Unchanged
5 year ARM FHA 2.5% 3.207% Unchanged
30 year fixed VA 2.495% 2.668% Unchanged
15 year fixed VA 2.25% 2.571% -0.19%
5 year ARM VA 2.5% 2.386% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Interest rates and APR vary by loan type

30-year mortgage rates also vary by loan program.

If you look at interest rate alone, VA loans typically have the lowest rates, followed by USDA loans.

FHA mortgages also have below-market rates. But they charge expensive mortgage insurance premiums (MIP) which push up the overall cost of the loan.

Similarly, conventional loans with less than 20% down can have expensive private mortgage insurance (PMI). That’s especially true for borrowers with lower credit.

But for borrowers with great credit, PMI is less expensive and won’t have as big of an impact on monthly mortgage payments.

Look at APR as well as mortgage rates

It’s important to look at annual percentage rate (APR) as well as current mortgage rates.

APR estimates the total yearly cost of a home loan, including interest and added costs like mortgage insurance.

So while an FHA loan might appear to have lower rates than a conventional loan, for example, it could have a higher APR and therefore be more expensive overall.

“Jumbo” mortgages (those over Fannie Mae and Freddie Mac limits) are a bit of a special case. Jumbo loan rates can be near or even below conventional loans. But these mortgages are significantly tougher to qualify for.

Find your lowest rate (Feb 17th, 2021)

What about 30-year refinance rates?

Refinancing from one 30-year mortgage to a new one will often lower your monthly payment, provided rates are lower than when you first got your loan. That’s because in most cases you’re lowering the interest rate and spreading your loan repayment over a longer time period.  

However, you have to be careful when refinancing into a new 30-year home loan.

By restarting your mortgage with a new 30-year term, you increase the amount of time you’re paying interest.

If you’ve had the loan a long time — or your new interest rate is not low enough to negate the time difference — you could actually end up paying more in interest in the long run.

For homeowners with only 15 or 20 years left on their original loan, it might make sense to refinance into a shorter loan term. This could help you secure a lower interest rate and pay your home off on schedule (or at least, close to it).   

How your interest rate is determined

In large part, mortgage rates are determined by the economy and overall interest rate market.

Mortgage rates move up or down depending on how much investors will pay for mortgage bonds (“mortgage-backed securities”) in a secondary market. The economy is a big factor in that.

During scary economic times, interest rates tend to be low. But they go up when things are looking positive.

On top of that, lenders adjust your rate based on how “risky” you appear as a borrower.

Less risk to the lender means a lower interest rate for you. More risk, and your rates go up.

Mortgage lenders determine risk and set mortgage rates based on a wide range of factors, including your:

  1. Credit score and credit report
  2. Debt-to-income ratio (DTI)
  3. Down payment
  4. Loan-to-value ratio
  5. Total assets/cash reserves
  6. Employment history and continuing income

If you’re very secure financially, you could be a “top-tier borrower,” meaning you qualify for the very lowest 30-year mortgage rates. The further away you are from that happy situation, the higher interest rate you’re likely to pay.

Tips to get the lowest mortgage rate

To get the best rate possible, it helps to get your finances ship-shape before applying for a mortgage.

For example, managing debts well and keeping your credit score up can help you qualify for a lower interest rate. As can savings for a bigger down payment.

Don’t worry. Nobody’s expecting miracles. But small improvements can make a worthwhile difference in the mortgage rate you’re offered.

Here are some quick hits:

  1. Keep paying all your bills on time
  2. Pay down your card balances as much as possible. That helps your credit score and DTI
  3. Beef up your savings
  4. Don’t open or close credit accounts unnecessarily. That lowers your credit score
  5. Consider buying discount points on your mortgage. Discount points add to your upfront cost, but lower. Your interest rate and long-term cost

Few of us can afford to boost our savings and pay down our debts at the same time. So focus on areas where you think you can make the biggest difference. You’ll see the biggest improvement in your credit scores by paying down high-interest, revolving credit accounts such as credit cards.

The other big way to lower your interest rate is by shopping around.

Mortgage lenders have flexibility with the rates they offer. Some will offer you lower rates than others because they’re more favorable toward your particular situation.

By simply comparing rates from 3-5 lenders before you buy, you can save hundreds — maybe thousands — on your overall mortgage costs.

Find your lowest 30-year mortgage rate (Feb 17th, 2021)

Is a 30-year fixed-rate mortgage best for you?

There’s a reason 30-year loans are so popular for buying and refinancing real estate. They’re very good and typically are the best loans for most people. But who are the exceptions?

Home buyers with a lot of monthly income

If you have plenty of cash left over every month, you may be able to afford the higher payments that come with a shorter-term mortgage.  

Opting for a shorter term could save you a bundle, because it means you pay less interest.

Instead of borrowing over 30 years, you’d be borrowing for 20, 15, 10 or even fewer. And the less time you pay interest, the more you save.

The same benefits apply when refinancing to a 15-year term instead of a new 30-year term.  

Intrigued? Run your figures through The Mortgage Reports mortgage calculator.

You’ll notice the payments for a 15-year loan are much higher. But you may be shocked by how much interest you’d save.

Someone moving in less than 10 years

A 30-year term with a fixed rate buys you security and predictability over three decades. But suppose you don’t need all that time, because you know you’ll be moving on in ten years or fewer.

In this case, you might be better off with an adjustable-rate mortgage (ARM).

Adjustable-rate mortgages typically come in 3 forms: the 5/1, 7/1, and 10/1 ARM. All have 30-year terms, but the first number (5, 7, or 10) refers to the amount of time your interest rate is fixed.  

If you’re certain you’ll be moving before that fixed-rate period ends, you could opt for an ARM and enjoy the introductory rate it offers — which is usually significantly lower than 30-year mortgage rates.

Find the right type of mortgage for you (Feb 17th, 2021)

30-year mortgage rates FAQ 

What is the average 30-year fixed mortgage rate?      

Average 30-year mortgage rates change daily — sometimes more than once a day. For today’s average, see the tables above.

Historically, 30-year mortgage rates have averaged around 8%. But they’ve been well below that in recent years, with average 30-year rates in 2016, 2017, 2019, and 2020 all coming in below 4%.

What is the lowest 30-year mortgage rate ever?

At the time of writing, the lowest 30-year mortgage rate ever was 2.66% (according to Freddie Mac’s weekly rate survey). That number may have changed since. And remember the “lowest-ever” is an average rate. Top-tier borrowers with excellent credit and large down payments or who pay points get rates below even those.

How does a 30-year mortgage work?

A 30-year, fixed-rate mortgage lets you repay your home loan balance over three decades. During that time period, your interest rate and monthly payments are fixed — so they always stay the same (unless you refinance). Opting for a 30-year FRM does not mean you need to keep the home all 30 years. You’re generally free to sell the home or refinance into a different loan at any time.

Is it better to have a 20- or 30-year mortgage?

It’s generally best to have the shortest mortgage you can comfortably afford to maintain. That’s how you pay the least interest on your loan.

Some financial planners argue that you’re better off with a longer mortgage, providing you invest the money saved on monthly payments into something providing high returns. However, high returns invariably come with high risks. And you’ll likely decide based on your personal tolerance for risk rather than a fancy spreadsheet.

Are 30-year mortgage rates going up or down?

On a macro level, 30-year mortgage rates have generally been going down for the past 40 years, with some brief periods where they rose. In 2020, the coronavirus pandemic pushed rates to new record lows multiple times.

On a micro level, mortgage rates can change daily. When you’re shopping for a mortgage, you can keep an eye on the news and try to time your rate lock for a day when mortgage rates go down.

But overall your finances — credit, down payment, and debts — will have a much bigger impact on your rate than trying to time the market.  

What are 30-year mortgage rates tied to?

Mortgage rates are tied to the price of mortgage-backed securities or MBS. These are bundles of mortgages sold on a secondary market. Most lenders sell their mortgages there soon after closing to free up cash and be able to make more loans.

How much investors will pay for MBS depends largely on how the economy’s doing. When it’s strong, they can get a better return on the stock market and other higher-risk investments. That pushes MBS prices lower and mortgage rates higher.

When investors are worried about the economy, they want to buy safer investments to balance the risk in their investment portfolios. And US Treasuries and MBSs are favorites. That extra demand pushes up the price of MBSs and sends mortgage rates lower.

Which lender has the best 30-year mortgage rates?

Mortgage rates can vary a lot from one lender to the next. They all use different formulas to determine a borrower’s ‘risk’ and set rates accordingly. Lenders may also adjust rates depending on their current workload and desire for new loans.

This means there’s no single lender with the “lowest” rates. That can vary from day to day and from one borrower to the next.

To find the lender with the best rates for you, shop around. Compare rates and fees from at least 3-5 lenders, and choose the one with the lowest overall cost for you.

Verify your new rate (Feb 17th, 2021)

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Source: themortgagereports.com

Mortgage and refinance rates today, Feb. 13, and rate forecast for next week

Today’s mortgage and refinance rates 

Average mortgage rates edged higher yesterday. There have been a lot of small, daily ups and downs recently. But they’ve generally canceled each other out. And Freddie Mac’s weekly averages haven’t moved at all over the last three reports.

Of course, there’s always a chance that rates will rise or fall suddenly and sharply. But it’s hard to spot a reason why they should this week. And that means the danger of continuing to float your rate may be lower than normal. But it also means the potential rewards of doing so may be lower, too.

Monday is Presidents’ Day. And US markets are closed. So our daily report will be back on Tuesday.

Find and lock a low rate (Feb 13th, 2021)

Program Mortgage Rate APR* Change
Conventional 30 year fixed 2.79% 2.793% +0.01%
Conventional 15 year fixed 2.363% 2.372% Unchanged
Conventional 20 year fixed 2.825% 2.832% +0.08%
Conventional 10 year fixed 2.321% 2.378% Unchanged
30 year fixed FHA 2.517% 3.187% +0.01%
15 year fixed FHA 2.385% 2.965% +0.07%
5 year ARM FHA 2.5% 3.207% Unchanged
30 year fixed VA 2.093% 2.263% +0.01%
15 year fixed VA 1.88% 2.198% Unchanged
5 year ARM VA 2.5% 2.386% Unchanged
Rates are provided by our partner network, and may not reflect the market. Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Find and lock a low rate (Feb 13th, 2021)


COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To see the latest on how coronavirus could impact your home loan, click here.

Should you lock a mortgage rate today?

If I were currently floating my rate, I probably would lock it today or soon. That’s for two reasons. First, the possibility of a sudden, sharp rise never goes away, though it currently looks unlikely.

And, secondly, the chances of my gaining much from continuing to float look too low to make the gamble worthwhile. Of course, the possibility of a sudden fall is always there. But it’s roughly as improbable as a sudden rise.

So my recommendation is to lock if you’re closing within 30 days of closing.

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

However, with so much uncertainty at the moment, your instincts could easily turn out to be as good as mine — or better. So be guided by your gut and your personal tolerance for risk.

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What’s moving current mortgage rates

We’ve already established that nothing much is moving current mortgage rates. They’re barely moving at all.

Of course, they’ll set off decisively one day. But precisely when is impossible to predict. Indeed, even the direction they’ll take is uncertain.

Risk of big falls

Yesterday, the S&P 500 and Nasdaq stock indexes closed at record highs. It’s been clear for a long time that the stock market generally has become increasingly divorced from economic reality.

Of course, those who make these markets would claim that they’re looking ahead to a rosy future in the medium or long term. But they have lousy records as soothsayers. And markets’ current highs are based on “confidence,” which is code for faith-based trading.

Stock market overvalued?

Also yesterday, the Federal Reserve Board revealed the “hypothetical scenarios for its 2021 bank stress tests.” And they included “asset prices dropping sharply, including a 55 percent decline in equity prices.”

Now, obviously, the Fed isn’t predicting a 55% slump in stock prices. But it takes the possibility of a significant fall seriously enough to make banks prove they could survive such an event.

And any such fall would likely drag down mortgage rates. Those who got out of the stock market would need to put their remaining money somewhere. And they’d want to buy safe or safer assets, including US Treasury bonds and mortgage-backed securities. Such extra demand would push up prices, which — as a mathematical certainty — would drive down yields and mortgage rates.

And those lower rates aren’t dependent on a stock market slump. They tend to go hand-in-hand with economic distress, which is why they’re so low at the moment. So any worsening of the economy could produce lower mortgage rates, even if the stock market continues to defy gravity.

Risk of big rises

Most economists think the economy will improve as the vaccination drive gains traction and the pandemic recedes. And that should bring higher mortgage rates. That’s probably the most likely scenario at the moment.

However, it could be months before a firm upward trend emerges. And, even then, it may be a gradual one. But, inevitably, there’s a possibility of it not happening at all.

For example, COVID-19 already has several mutations. And, were a future one to prove resistant to vaccines, that could undermine or slow the economic recovery, something that would likely bring lower mortgage rates.

All the above is a roundabout way of saying that there’s even less certainty about the future than normal. And we may one day look back on this period, when mortgage rates are becalmed, with fond nostalgia.

Economic reports next week

The big economic report next week is Wednesday’s retail sales. The others would have to be stunningly good or bad to move mortgage rates far.

Here are next week’s main economic reports:

  • Wednesday — January retail sales, plus industrial production and capacity utilization. Also January producer price index, a predictor of inflation
  • Thursday — Weekly new claims for unemployment insurance. Plus January housing starts and housing permits
  • Friday — January existing home sales

More important than these economic reports is likely to be any legislative progress or setbacks encountered by the administration’s $1.9 trillion pandemic relief package, currently making its way through Congress. Successes may mean higher rates while failures lower ones.

Find and lock a low rate (Feb 13th, 2021)

Mortgage interest rates forecast for next week

Just as over the last couple of weeks, there’s little reason to expect sharp changes in mortgage rates this week. They’ll probably continue to move up and down just a little, going nowhere fast.

Mortgage and refinance rates usually move in tandem. But note that refinance rates are currently a little higher than those for purchase mortgages. That gap’s likely to remain constant as they change.

How your mortgage interest rate is determined

Mortgage and refinance rates are generally determined by prices in a secondary market (similar to the stock or bond markets) where mortgage-backed securities are traded.

And that’s highly dependent on the economy. So mortgage rates tend to be high when things are going well and low when the economy’s in trouble.

Your part

But you play a big part in determining your own mortgage rate in five ways. You can affect it significantly by:

  1. Shopping around for your best mortgage rate — They vary widely from lender to lender
  2. Boosting your credit score — Even a small bump can make a big difference to your rate and payments
  3. Saving the biggest down payment you can — Lenders like you to have real skin in this game
  4. Keeping your other borrowing modest — The lower your other monthly commitments, the bigger the mortgage you can afford
  5. Choosing your mortgage carefully — Are you better off with a conventional, FHA, VA, USDA, jumbo or another loan?

Time spent getting these ducks in a row can see you winning lower rates.

Remember, it’s not just a mortgage rate

Be sure to count all your forthcoming homeownership costs when you’re working out how big a mortgage you can afford. So focus on your “PITI” That’s your Principal (pays down the amount you borrowed), Interest (the price of borrowing), (property) Taxes, and (homeowners) Insurance. Our mortgage calculator can help with these.

Depending on your type of mortgage and the size of your down payment, you may have to pay mortgage insurance, too. And that can easily run into three figures every month.

But there are other potential costs. So you’ll have to pay homeowners association dues if you choose to live somewhere with an HOA. And, wherever you live, you should expect repairs and maintenance costs. There’s no landlord to call when things go wrong!

Finally, you’ll find it hard to forget closing costs. You can see those reflected in the annual percentage rate (APR) you’ll be quoted. Because that effectively spreads them out over your loan’s term, making that higher than your straight mortgage rate.

But you may be able to get help with those closing costs and your down payment, especially if you’re a first-time buyer. Read:

Down payment assistance programs in every state for 2020

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Mortgage rate methodology

The Mortgage Reports receives rates based on selected criteria from multiple lending partners each day. We arrive at an average rate and APR for each loan type to display in our chart. Because we average an array of rates, it gives you a better idea of what you might find in the marketplace. Furthermore, we average rates for the same loan types. For example, FHA fixed with FHA fixed. The end result is a good snapshot of daily rates and how they change over time.

Source: themortgagereports.com

Current Mortgage Rates for February 12th, 2021 : Rates lower – Bankrate.com

Several closely watched mortgage rates declined today. Rates remain near historic lows, with the average 30-year rate 1.30 percentage points below the 2019 annual average rate. See below for an interactive rates chart, and a breakdown of today’s rates.

Rates as of February 12, 2021.

Data source: Bankrate overnight averages data

Rates for mortgages are in a constant state of flux, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it may make sense to go ahead and lock if you see a rate you like. Just make sure you shop around first.

Find the right mortgage rate for your specific criteria.

30-year mortgage rates today

The average rate you’ll pay for a 30-year fixed mortgage is 2.83 percent, a decrease of 1 basis point from a week ago. Last month on the 12th, the average rate on a 30-year fixed mortgage was higher, at 2.91 percent.

At the current average rate, you’ll pay a combined $412.49 per month in principal and interest for every $100,000 you borrow. That represents a decline of $0.53 over what it would have been last week.

You can use Bankrate’s mortgage rate calculator to get a handle on what your monthly payments would be and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 2.34 percent, up 1 basis point over the last seven days.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $659 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

5/1 Adjustable Rate Mortgage Rates

The average rate on a 5/1 adjustable rate mortgageis 2.95 percent, sliding 3 basis points over the last 7 days.

These types of loans are best for those who expect to refinance or sell before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.95 percent would cost about $419 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgages

is 2.86 percent, a decrease of 1 basis point since the same time last week. Last month on the 12th, the average rate for jumbo mortgages was higher, at 2.96 percent.

At today’s average rate, you’ll pay a combined $414.09 per month in principal and interest for every $100k you borrow. That’s a decline of $0.54 from last week.

To follow how rates change day-to-day, see our daily rates page.

How to get the best rate

Mortgage rates can differ widely based on overall market forces, the loan amount, your location, your financial situation and how eager lenders are to get your business. Remember that the rates we quote are averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.

It’s crucial when you’re looking for a mortgage to shop around and compare and contrast all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.

Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain current on today’s rates. If you’re not happy with the results you see between these pages, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.

Shopping for the right lender?

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

Source: bankrate.com

Today’s mortgage refinance rates inch lower | February 10, 2021 – Fox Business

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.

Check out the mortgage refinancing rates for February 10, 2021, which are down from yesterday. (iStock)

Based on data compiled by Credible Operations, Inc., NMLS Number 1681276, current mortgage refinance rates fell slightly compared to yesterday’s. Average rates for 20-year refinance dipped to 2.625%, while 30-year rates held firm at 2.750% for the ninth straight day.

Continue Reading Below

  • 30-year fixed-rate refinance: 2.750%, Unchanging
  • 20-year fixed-rate refinance: 2.625%, Down from 2.750%, -0.125
  • 15-year fixed-rate refinance: 2.125%, Unchanging

Rates last updated on February 10, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you’re interested in saving money on your monthly mortgage payments, or considering a cash-out refinance, Credible’s free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.

Current 30-year fixed-rate refinance

The current rate for a 30-year fixed-rate refinance is 2.750%. This is the same as yesterday.

Current 20-year fixed-rate refinance

The current rate for a 20-year fixed-rate refinance is 2.625%. This is down from yesterday.

Current 15-year fixed-rate refinance

The current rate for a 15-year fixed-rate refinance is 2.125%. This is the same as yesterday.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Rates last updated on February 10, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

How mortgage refinance rates have changed

Today, mortgage refinance rates have risen compared to this time last week.

  • 30-year fixed refinance: 2.750%, the same as last week
  • 20-year fixed refinance: 2.625%, the same as last week
  • 15-year fixed refinance: 2.125%, up from 2.000% last week, +0.125

Think it might be the right time to refinance? You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Rates last updated on February 10, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

The factors behind today’s refinance rates

Current refinance rates, like mortgage interest rates in general, are affected by many economic factors, like unemployment numbers and inflation. But your personal financial history will also determine the rates you’re offered when refinancing your mortgage.

Larger economic factors

  • Strength of the economy
  • Inflation rates
  • Employment
  • Consumer spending
  • Housing construction and other market conditions
  • Stock and bond markets
  • 10-year Treasury yields
  • Federal Reserve policies

Personal economic factors

  • Credit score
  • Credit history
  • Down payment size
  • Loan-to-value ratio
  • Loan type, size, and term
  • Debt-to-income ratio
  • Location of the property

How to get your lowest mortgage refinance rate

If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you’re hoping to refinance, so you can find the best rate for your situation.

Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac. Credible can help you compare multiple lenders at once in just a few minutes.

If you decide to refinance your mortgage, be sure to shop around and compare rates from multiple mortgage lenders. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible’s partner here. It’s fast, easy, and the whole process can be completed entirely online.

Mortgage rates by loan type

Whether you’re a first-time homebuyer shopping for mortgage loans, or you’re seeking lower monthly payments on an existing home, Credible can help you keep an eye on current mortgage rates and find the right loan for your financial goals.

Be sure to check out these loan rates, which you’ll be able to compare by annual percentage rate (APR) as well as interest rate:

More resources on mortgage refinance

Want to learn more about refinancing your home loan? Take a look at the following articles:

Source: foxbusiness.com

Today’s Mortgage Rates, January 6, 2021 | Rates decrease – Bankrate.com

Multiple benchmark mortgage rates were down today. The average rates on 30-year fixed and 15-year fixed mortgages both fell. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also sunk lower.

Rates as of January 6, 2021.

Data source: Bankrate overnight averages data

Mortgage rates change daily, but they remain much lower overall than they were before the Great Recession. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just make sure you shop around first.

See mortgage rates for a variety of rate terms.

30-year mortgage rates today

The average 30-year fixed-mortgage rate is 2.86 percent, down 3 basis points over the last seven days. Last month on the 6th, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.

At the current average rate, you’ll pay principal and interest of $414.09 for every $100,000 you borrow. That’s lower by $1.60 than it would have been last week.

You can use Bankrate’s mortgage rate calculator to figure out your monthly payments and see what the effects of making extra payments would be. It will also help you computehow much interest you’ll pay over the life of the loan.

15-year mortgages

The average 15-year fixed-mortgage rate is 2.30 percent, down 8 basis points over the last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $657 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

5/1 Adjustable Rate Mortgage Rates

The average rate on a 5/1 ARM is 2.95 percent, down 7 basis points from a week ago.

These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.95 percent would cost about $419 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Current jumbo mortgage rates

is 2.90 percent, unaltered from a week ago. Last month on the 6th, the average rate on a jumbo mortgage was greater than 2.90, at 2.91 percent.

At today’s average jumbo rate, you’ll pay $416.23 per month in principal and interest for every $100k you borrow.

To stay well-informed on current mortgage rates, see Bankrate’s daily rates news hub.

Where to find the best rates

Interest rates can vary largely based on overall market forces, the size of the loan, your location, your financial situation and how eager lenders are to get your business. Remember that the rates we cite are market averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.

It’s valuable when you’re searching for a loan to shop around and compare all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.

Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain current on today’s rates. If you’re not happy with the results there, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.

Other daily news articles:

Shopping for a mortgage lender?

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

Source: bankrate.com

Current Mortgage Rates, January 1, 2021 | Rates dip – Bankrate.com

Multiple benchmark mortgage rates tapered off today. The average rates on 30-year fixed and 15-year fixed mortgages both ticked downwards. The average rate on 5/1 adjustable-rate mortgages, or ARMs, the most popular type of variable rate mortgage, also slid lower.

Rates as of January 1, 2021.

Data source: Bankrate overnight averages data

Mortgage rates are in a constant state of flux, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it may make sense to lock if you see a rate you like. Just don’t do so without shopping around first.

View mortgage rates for a variety of rate terms.

30-year mortgage rates today

The average 30-year fixed-mortgage rate is 2.87 percent, down 3 basis points from a week ago. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.

At the current average rate, you’ll pay a combined $414.63 per month in principal and interest for every $100,000 you borrow. That’s lower by $1.60 than it would have been last week.

You can use Bankrate’s mortgage loan calculator to get a handle on what your monthly payments would be and see how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year mortgages

The average 15-year fixed-mortgage rate is 2.35 percent, down 3 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $660 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.

5/1 Adjustable Rate Mortgage Rates

The average rate on a 5/1 ARM is 3.01 percent, ticking down 4 basis points from a week ago.

These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be materially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.01 percent would cost about $422 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.

Jumbo mortgage rates

The average rate you’ll pay for a jumbo mortgage is 2.89 percent, a decrease of 4 basis points over the last seven days. This time a month ago, the average rate on a jumbo mortgage was higher, at 2.96 percent.

At today’s average rate, you’ll pay a combined $415.69 per month in principal and interest for every $100k you borrow. That’s a decline of $2.15 from last week.

To follow how rates change day-to-day, check out our rates hub.

Where to get the best rates

Interest rates can differ largely based on overarching market forces, the loan amount, your location, your financial situation and how motivated mortgage lenders are to get your business. Keep in mind that the rates we cite are market averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.

It’s important when you’re looking for a mortgage to shop around and compare and contrast all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.

Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain current on today’s rates. If you’re not happy with the results you see between these pages, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.

Read about other loan terms:

Shopping for the right lender?

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

Source: bankrate.com