Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Mortgage rates are down in response to slowing inflation and renewed hopes that the Federal Reserve could cut the federal funds rate multiple times this year.
After spending most of the month in the upper 6% range, 30-year mortgage rates have finally dropped back down below 6.5%, according to Zillow data.
Last week, the Bureau of Labor Statistics reported that the Consumer Price Index rose 3.0% year over year in June. This was a significant cooldown from the previous month and lower than what many forecasters were expecting. As a result, mortgage rates decreased.
As long as inflation continues to slow, mortgage rates should ease throughout the remainder of 2024, improving affordability for hopeful homebuyers. If you’re in the process of shopping for a home right now, you can limit the impact of today’s still-high rates by getting quotes from at least three different mortgage lenders to be sure you’re getting the best deal.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Fall (-0.47%)
The current average 30-year fixed mortgage rate is 6.21%, down 47 basis points from where it was this time last week, according to Zillow data. This rate is also down compared to a month ago, when it was 6.62%.
At 6.21%, you’ll pay $613 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Inch Decrease (-0.40%)
The average 20-year fixed mortgage rate is 40 basis points down from where it was last week, and is sitting at 6.03%. This time last month, the rate was 6.26%.
With a 6.03% rate on a 20-year term, your monthly payment will be $718 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Go Down (-0.41%)
The average 15-year mortgage rate is 5.66%, 41 basis points lower than last week. It’s down compared to this time last month, when it was 6.05%.
With a 5.66% rate on a 15-year term, you’ll pay $826 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Drop (-0.30%)
The 7/1 adjustable mortgage rate is down 30 basis points from a week ago at 6.39%. It’s also down compared to a month ago, when it was at 6.97%.
At 6.39%, your monthly payment would be $625 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Lower This Week (-0.37%)
The average 5/1 ARM rate is 6.26%, a 37-basis-point decrease from last week. It’s down compared to where it was a month ago, when it was 6.79%.
Here’s how a 6.26% rate would affect you for the first five years: You’d pay $616 per month toward principal and interest for every $100,000 you borrow.
30-Year FHA Rates Fall (-0.45)
The average 30-year FHA interest rate is 5.54% today, down 45 basis points from the week before. This rate was 6.10% a month ago.
At 5.54%, you would pay $570 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-Year VA Rates Tick Down (-0.27%)
The current VA mortgage rate is 5.58%, 27 basis points lower than this time last week. This rate was 6.04% a month ago.
With a 5.58% rate, your monthly payment would be $573 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Decrease (-0.39%)
The average 30-year refinance rate is 7.45%, 39 basis points down from last week. It’s down compared to a month ago, when it was 7.79%.
Here’s how a 7.45% rate would affect your monthly payments: You’d pay $696 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Drop a Bit (-0.17%)
The current 20-year fixed refinance rate is 6.62%, which is down 17 basis points compared to a week ago. This rate was 7.11% this time last month.
A 7.53% rate on a 20-year term will result in a $807 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Tick Up (+0.23%)
The average 15-year fixed refinance rate is 6.15%, which is 23 basis points higher compared to last week. It’s down slightly compared to this time a month ago, when it was at 6.28%.
A 6.15% rate on a 15-year term means you’ll pay $852 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Fall (-0.53%)
The average 7/1 ARM refinance rate is 6.43%, down 53 basis points from where it was last week. It’s also down from a month ago, when it was 6.83%.
Refinancing into a 7/1 ARM with a 6.43% rate means your monthly payment toward principal and interest will be $627 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Go Down (-0.13%)
The 5/1 ARM refinance rate is 6.25%, which is 13 basis points lower than it was this time last week. It’s down compared to this time last month, when it was 6.50%.
A 6.25% rate will result in a monthly payment of $616 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Drop Slightly (-0.16)
The 30-year FHA refinance rate is 5.63%, which is down 16 basis points from this time last week. It was 5.79% a month ago.
A 5.63% refinance rate would lead to a $576 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Inch Down (-0.06)
The average 30-year VA refinance rate is 5.85%, which is down six basis points compared to where it was was last week. This rate was 5.88% a month ago.
At 5.85%, your new monthly payment would be $590 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
If you have an existing VA loan, you can refinance it to get a better interest rate, change your loan term or tap into your home equity.
To qualify for a VA mortgage refinance, you’ll need to meet specific service, income and credit score guidelines.
The two primary VA loan refinance options are Interest Rate Reduction Refinance Loans (IRRLs) and VA cash-out refinances.
Refinancing your current mortgage into a VA loan can be a smart move if you’re an active-duty military member, a veteran or an eligible spouse. Fortunately, qualifying to refinance to a VA loan isn’t overly difficult, provided you meet the military service requirement and lender criteria.
Here’s everything you need to know about VA loan refinancing: What it is and how it works.
What is VA loan refinancing?
A VA loan or mortgage refinance is a home loan product backed by the Department of Veterans Affairs (VA). It lets you swap your current loan for a new one, but with different terms. Depending on the type of loan you select, you may be able to get a lower interest rate, change the loan term or convert your home equity into cash.
In addition, if you originally took out an adjustable-rate mortgage (ARM) and want more predictable monthly payments, you can switch to a VA fixed-rate mortgage.
Types of VA loan refinancing
There are two main options available to you when you choose to refinance with a VA loan:
Interest Rate Reduction Refinance Loan (IRRRL): Often called a VA streamline refinance, an IRRRL is available to current VA loan-holding homeowners looking to secure a lower interest rate.
VA cash-out refinance: Lets any mortgage-holder swap out a current home loan with a new one and tap into the home equity they’ve built up.
IRRRL vs. VA cash-out refinance
IRRRL
VA cash-out refinance
Primary Purpose
To secure a lower interest rate or switch from an ARM to a fixed-rate mortgage
To tap into your home equity and convert it into cash
Property Type
Any residence: primary, vacation home, etc. (if previously occupied)
Primary residence
Requirements
No 30-day late payments within the last 12 months (select lenders)
Credit and income criteria must be met
Home appraisal by the lender
Closing Costs
Can be rolled into the loan or paid by the lender
Must be paid upfront by borrower
Loan Restrictions
Limited to VA-backed home loans
Can be used for conventional and VA-backed loans
Who qualifies for a VA mortgage refinance?
As the name implies, VA loan refinancing is available to current and former members of the U.S. military. More specifically, here’s what you’ll need to qualify for VA refinance loans:
Service: Eligibility for a VA home loan typically requires 90 days of active-duty military service during a named conflict, six years in the National Guard or Reserves, or 181 consecutive days of active duty in peacetime. Veterans must have an honorable discharge, though exceptions exist. You may also qualify if your spouse died in the line of duty or due to a service-related disability. VA loans also require a Certificate of Eligibility (COE) verifying military service, obtained through your lender or directly through the Department of Veteran Affairs.
Income: Borrowers also need to show sufficient income to repay their loans, with a debt-to-income (DTI) ratio typically capped at 41 percent.
Credit score: While the VA doesn’t set a minimum credit score, most lenders look for at least 620 — except for the IRRRL, which often doesn’t require underwriting).
Property type: Property purchased with a VA loan must be your primary residence, not a second home or rental property.
Timing: You should occupy the new home within 60 days of closing, though extensions up to 12 months are possible under certain conditions. Moving in beyond 12 months is rarely considered acceptable by the VA.
How to refinance into a VA loan
It is relatively simple to refinance into a VA loan. However, the two types require slightly different steps to obtain.
Interest Rate Reduction Refinance Loan (IRRRL)
You can use the Interest Rate Reduction Refinance Loan (IRRRL) — aka the VA streamline refinance — to exchange an existing VA loan for a new VA loan with a lower interest rate. Many homeowners also use it to switch from their VA adjustable-rate mortgage (ARM) to a fixed-rate mortgage.
Other benefits to consider:
This loan is usually available without a home appraisal or any underwriting.
You’re not required to pay closing costs upfront.
The funding fee is lower than with VA new-purchase and construction loans.
In terms of costs, you’ll pay a 0.5 percent fee to take out an IRRRL along with the lender’s closing costs, which can be rolled into the new loan. Some lenders also offer to pay the closing costs for you in exchange for a higher interest rate.
However, you can only use the VA streamline mortgage if your new interest rate is lower than your current rate. That means you may have to wait for interest rates to drop before you can pull the trigger on a VA IRRRL. There’s one exception: If you are switching from a VA ARM loan to a fixed-rate loan, then the new loan’s rate may be higher than the ARM rate.
Also, you can only borrow up to the same amount as your existing mortgage. This means you can’t get an extra amount of money, as people often do when refinancing. For that, you’ll need a VA cash-out refinance.
VA cash-out refinance
A VA cash-out refinance loan allows current homeowners to refinance their mortgages and take out some or all of their accrued equity. You can use this type of loan to refinance either an existing VA loan or a conventional mortgage, and the VA will guarantee loans worth up to 100 percent of the home’s value. Like other VA loans, this loan requires you to meet military service requirements and have a COE.
It can be beneficial if:
You want to switch from a conventional to a VA-backed loan.
You want to make home improvements that will increase your property value.
You want to pay off expensive debt and save a bundle in interest.
If you’re considering this option, have a clear goal in mind for the funds, and be realistic about your habits. If you intend to use the cash to pay off credit cards, for example, you’ll need to be sure you won’t accumulate an unmanageable balance again in the future.
If it’s your first VA home loan, the funding fee (as of April 2024) is 2.15 percent. But if you’ve already used your VA loan benefit before, the funding fee increases to 3.3 percent. You’ll also be responsible for closing costs.
Benefits of refinancing to a VA loan
The benefits of refinancing with a VA loan are plentiful, which is why VA home loans are so popular among those who can qualify. Here are the other key advantages of refinancing with a VA loan:
No mortgage insurance needed: VA home loans don’t require mortgage insurance, even if you don’t put money down.
No cash upfront: No down payment is needed, though closing costs are still required for refinance loans.
Minimal upfront costs: VA loans typically charge a funding fee that the borrower pays upfront. It can be wrapped into the closing costs, but this means paying more interest over time. The fee may be waived if you have a service-related disability or if you’re the spouse of a deceased veteran.
Save on interest: VA home loan rates are typically competitive, potentially saving you money compared to conventional loans.
Easier to get: Qualifying is easier due to the VA’s more flexible credit and income criteria, though cash-out refinance loans have stricter eligibility rules.
No prepayment penalties: There are no penalties for paying off your VA loan early.
More protectable payments: If you prefer a consistent monthly payment, you can switch from an adjustable-rate to a fixed-rate VA mortgage.
Should you refinance into a VA loan?
It depends on your unique financial situation. VA loans come with various perks that could make them the better choice. You’ll likely get a lower interest rate than you would with other refinancing options and more affordable closing costs. Plus, you won’t pay mortgage insurance if you refinance into a VA loan. In fact, you might not need to make a down payment at all.
If you already have a VA loan you want to refinance, an IRRRL could even allow you to switch to a new loan without undergoing underwriting. If you’re looking to access your home equity, a VA cash-out refinance could also be the better option, as you could be eligible to pull out up to 100 percent of the appraised value of your home.
But there are special expenses (those funding fees) and certain limits. Ultimately, you must consider the costs that come with these loan products to determine if refinancing into a VA-backed loan is a smart financial move.
If you’re thinking about refinancing your VA or conventional mortgage, a VA loan calculator can help you estimate your new monthly payment. While many banks, credit unions and online lenders offer VA loans, stick with specialists in VA lending, as the application can be complicated.
Our list of VA-approved lenders can be a starting point, and talk to military friends or family about their experiences. Remember, it’s the lenders who determine rates and terms, so compare offers before deciding.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Mortgage rates have started the month slightly high. In May, 30-year mortgage rates averaged around 6.76%, according to Zillow data. But they’ve gone up a bit in recent days.
As inflation decelerates and the Federal Reserve starts to lower the federal funds rate, mortgage rates are expected to come down. But we’ll need more data showing that inflation is sustainably coming down before the Fed will consider cutting rates. If inflation remains elevated, mortgage rates will stay high, too.
It’s possible hopeful homebuyers will need to wait until next year if they want to snag a substantially lower rate. According to the Mortgage Bankers Association, rates could drop to 5.9% by the end of 2025. But this year, they might only drop to the mid-6% range.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Tick Up (+0.20%)
The current average 30-year fixed mortgage rate is 6.91%, up 20 basis points from where it was this time last week, according to Zillow data. This rate is flat compared to a month ago, when it was also 6.91%.
At 6.91%, you’ll pay $659 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Increase (+0.25%)
The average 20-year fixed mortgage rate is 25 basis points up from where it was last week, and is sitting at 6.58%. This time last month, the rate was 6.69%.
With a 6.58% rate on a 20-year term, your monthly payment will be $750 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Go Up (+0.13%)
The average 15-year mortgage rate is 6.17%, 13 basis points lower than last week. It’s down compared to this time last month, when it was 6.25%.
With a 6.17% rate on a 15-year term, you’ll pay $853 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Stay Flat (No Change)
The 7/1 adjustable mortgage rate is unchanged from a week ago at 6.63%. It’s down compared to a month ago, when it was at 7.63%.
At 6.63%, your monthly payment would be $641 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Inch Up (+0.09%)
The average 5/1 ARM rate is 6.69%, a nine-basis-point increase from last week. It’s down compared to where it was a month ago, when it was 7.42%.
Here’s how a 6.69% rate would affect you for the first five years: You’d pay $645 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Rise (+0.24%)
The average 30-year FHA interest rate is 6.27% today, which is up 24 basis points from last week. This rate was 6.16% a month ago.
At 6.27%, you would pay $617 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Increase Somewhat (+0.20%)
The current VA mortgage rate is 6.14%, 20 basis points higher than this time last week. This rate was 6.29% a month ago.
With a 6.14% rate, your monthly payment would be $609 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Go Up (+0.20%)
The average 30-year refinance rate is 7.76%, 20 basis points higher than last week. It’s up compared to a month ago, when it was 7.48%.
Here’s how a 7.76% rate would affect your monthly payments: You’d pay $717 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
The current 20-year fixed refinance rate is 6.94%, which is up just three basis points compared to a week ago. This rate was 6.78% this time last month.
A 6.94% rate on a 20-year term will result in a $772 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Drop Half a Percentage Point (-0.57%)
The average 15-year fixed refinance rate is 5.79%, which is 57 basis points lower compared to last week. It’s also down compared to this time a month ago, when it was at 6.31%.
A 5.79% rate on a 15-year term means you’ll pay $833 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Inch Up (+0.08%)
The average 7/1 ARM refinance rate is 6.83%, up eight basis points from where it was last week. It’s down from a month ago, when it was 8.19%.
Refinancing into a 7/1 ARM with a 6.83% rate means your monthly payment toward principal and interest will be $654 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Rise (+0.34%)
The 5/1 ARM refinance rate is 6.88%, which is just three basis points lower than it was this time last week. It’s down compared to this time last month, when it was 7.93%.
A 6.88% rate will result in a monthly payment of $657 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Flat (No Change)
The 30-year FHA refinance rate is 5.79%, which is the same as it was last week. This rate was 6.03% this time last month.
A 5.79% refinance rate would lead to a $586 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Tick Up (+0.24)
The average 30-year VA refinance rate is 6.07%, which is up 24 basis points compared to where it was was last week. This rate was 6.10% a month ago.
At 6.07%, your new monthly payment would be $604 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Mortgage rates are down this month. So far in May, 30-year mortgage rates have averaged around 6.74%, according to Zillow data, which is 11 basis points lower than the previous month’s average. But whether they’ll go down further depends on how inflation trends in the coming months.
As inflation slows and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates should drop. But it may be a while before affordability improves for borrowers.
On a $250,000 loan with a 6.74% rate, you’d pay $1,620 each month on your mortgage. According to the Mortgage Bankers Association, rates could drop to 5.9% by the end of 2025. With a 5.9% rate, you’d pay $1,483 a month for that same mortgage.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Tick Up (+0.23%)
The current average 30-year fixed mortgage rate is 6.81%, up 23 basis points from where it was this time last week, according to Zillow data. This rate is down compared to a month ago, when it was 6.94%.
At 6.81%, you’ll pay $653 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Inch Up (+0.09%)
The average 20-year fixed mortgage rate is nine basis points up from where it was last week, and is sitting at 6.25%. This time last month, the rate was 6.67%.
With a 6.25% rate on a 20-year term, your monthly payment will be $731 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Go Up (+0.25%)
The average 15-year mortgage rate is 6.08%, nine basis points lower than last week. It’s down compared to this time last month, when it was 6.21%.
With a 6.08% rate on a 15-year term, you’ll pay $848 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Inch Down (-0.05%)
The 7/1 adjustable mortgage rate is down five basis points from a week ago, currently at 6.78%. It’s up slightly compared to a month ago, when it was at 6.69%.
At 6.78%, your monthly payment would be $651 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Nearly Flat (+0.03%)
The average 5/1 ARM rate is 6.68%, a three-basis-point increase from last week. It’s down compared to where it was a month ago, when it was 6.75%.
Here’s how a 6.68% rate would affect you for the first five years: You’d pay $644 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Essentially Flat (-0.01%)
The average 30-year FHA interest rate is 6.15% today, which is just one basis point down from last week. This rate was 6.07% a month ago.
At 6.15%, you would pay $609 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Increase a Bit (+0.13%)
The current VA mortgage rate is 5.96%, 13 basis points higher than this time last week. This rate was 6.25% a month ago.
With a 5.96% rate, your monthly payment would be $597 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Fall (-0.33%)
The average 30-year refinance rate is 7.32%, 33 basis points lower than last week. It’s down compared to a month ago, when it was 7.87%.
Here’s how a 7.32% rate would affect your monthly payments: You’d pay $687 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Decrease (-0.30%)
The current 20-year fixed refinance rate is 6.70%, which is down 30 basis points compared to a week ago. This rate was 7.05% this time last month.
A 6.70% rate on a 20-year term will result in a $757 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Drop (-0.40%)
The average 15-year fixed refinance rate is 6.18%, which is 40 basis points lower compared to last week. It’s also down compared to this time a month ago, when it was at 6.71%.
A 6.18% rate on a 15-year term means you’ll pay $854 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Tick Down (-0.10%)
The average 7/1 ARM refinance rate is 6.68%, down 10 basis points from where it was last week. It’s down from a month ago, when it was 8.06%.
Refinancing into a 7/1 ARM with a 6.68% rate means your monthly payment toward principal and interest will be $644 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Barely Inch Down (-0.03%)
The 5/1 ARM refinance rate is 6.49%, which is just three basis points lower than it was this time last week. It’s down compared to this time last month, when it was 6.75%.
A 6.49% rate will result in a monthly payment of $631 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Flat (No Change)
The 30-year FHA refinance rate is 5.79%, which is the same as it was last week. This rate was 6.03% this time last month.
A 5.79% refinance rate would lead to a $586 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Tick Up (+0.15)
The average 30-year VA refinance rate is 5.91%, which is up 15 basis points compared to where it was was last week. This rate was 6.04% a month ago.
At 5.91%, your new monthly payment would be $594 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
Portfolio ARM; Market Intelligence, VOE Tools; Bank of England & RESPA; CFPB Ruling Interview
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Portfolio ARM; Market Intelligence, VOE Tools; Bank of England & RESPA; CFPB Ruling Interview
By: Rob Chrisman
1 Hour, 47 Min ago
Greetings from the Arch MI meeting room space! Heard in the hallways here at the MBA’s Secondary conference in Manhattan: “Our loan officers are telling their clients, ‘Yeah, the best time to buy a house was five years ago. The second-best time is… now.’” People’s memories are short, no one writes about how our industry helped millions of people during the pandemic, and the mainstream press is always looking for sensationalism. The latest example is “zombie mortgages”: 2nd mortgages taken out during 2008-2010 and that haven’t been paid. And we’re to blame? UWM’s DPA program, purportedly tied to Freddie, has garnered some interest. There’s another saying: the stock market is not the economy. But last week the Dow Jones Industrial Average closed above 40,000 for the first time in history. Apparently, investors have confidence the Federal Reserve will get inflation under control without throwing the country into a recession. Should we attribute this to the policies advanced by President Joe Biden and Secretary of the Treasury Janet Yellen? Some will. On an annualized basis, during the Trump Administration the Dow rose 11.8 percent, Barack Obama (+12.1 percent) and Bill Clinton (+15.9 percent). (Found here, this week’s podcasts are Sponsored by Truv. Truv lets applicants verify income, employment, assets, insurance, and switch direct deposits. Unlock the power of open finance, with Truv. Today’s features an interview with attorney Jay Beitel on the Supreme Court finding the funding of the CFPB constitutional.)
Lender and Broker Software, Products, and Services
“The first ever pizza delivery took place in 1889, when famous pizza chef Raffaele Esposito treated Italy’s King Umberto and Queen Margherita to a legendary slice. Now, almost 15 percent of all restaurant meals eaten in the U.S. are delivered. Evaluating gig income from sources such as DoorDash, Postmates, Uber and Lyft are imperative to qualifying more applicants. Argyle provides direct-source verification of income and employment (VOIE) covering 90 percent of the U.S. workforce, including more than 25 of the largest #gigeconomy employers. Lenders can trust they are getting the most complete data possible at verification, accounting for all income a borrower has at their disposal. Discover all the gig workers Argyle covers today.”
Want to know how to pick up an extra partner deal a month? With MMI’s cutting-edge mortgage transaction data feeding into Bonzo’s next-gen SMS and email automation platform, the path to unlocking an extra agent deal or two will be clear. Discover the three steps you can take to win in today’s market with MMI and Bonzo in their latest playbook. MMI and Bonzo users employ this set of simple strategies that any producer can follow. Easily find the right agents to talk to, seamlessly create targeted SMS and email campaigns, reach out at the relevant moment, and do it all without spending half your day on your laptop. Take a minute to see how it’s done. Download the playbook here and find out what you’ve been missing without the dynamic duo of MMI and Bonzo in your life.
Webinar: Surprise: First-time home buyers are on the rise. Here’s how to earn their business. Interest rates and housing inventory haven’t been hospitable for first-time buyers. Despite challenges, this segment made a notable jump in Q1 2024. What drove first-time buyers onto the property ladder, and how can lenders win their business? In this webinar, presented by Maxwell in partnership with HousingWire on May 29 at 1 p.m. CT, we’ll dig into Maxwell’s exclusive data to better understand today’s first-time buyers and explore how to cater to this valuable segment. Click here to save your seat (and if you can’t make the live event, you can still register for the on-demand recording!).
Broker and Correspondent Products
“NexBank Wholesale & Correspondent now offers 1- and 3-year Portfolio ARMs and $2,500 VLIP credit on HomeReady and Home Possible. Why partner with NexBank? Competitive pricing and products, and a streamlined experience: NexBank makes it easy for you to do business, has pricing that gives you the competitive edge, and offers a wide variety of products – Agency, FHA and VA, plus competitive portfolio Jumbo and Non-QM. We offer low-down payment and expanded financing options, HomeReady Home Possible $2,500 credit to use towards a down payment or closing costs for qualified borrowers. Wholesale Lender since 2008: Highly experienced and dedicated team understands the challenges that clients face and opportunities that help you succeed. 100 percent dedicated to Wholesale Lending: NexBank doesn’t compete with our clients for retail originations or refinancing business. We’re solely focused on building long-term relationships with our TPO clients and helping them grow their businesses. Contact us. Member FDIC. Equal Housing Lender. NMLS672886.”
The Bank of England, Veterans, RESPA, FCRA, and HMDA
Lenders and vendors should always find penalties educational. (Though some liken the situation to a herd of zebras in Africa watching one of their own be pulled down by lions.)
The Federal Deposit Insurance Corporation (FDIC) announces a settlement with Bank of England, England, Arkansas, for violations of Section 5 of the Federal Trade Commission Act (Section 5), the Real Estate Settlement Procedures Act (RESPA), the Fair Credit Reporting Act (FCRA), and the Home Mortgage Disclosure Act (HMDA). The bank has stipulated to the issuance of an Order to Pay Civil Money Penalty (CMP) in the amount of $1.5 million. (Type in “Bank of England.”)
In addition, nine former employees of the Bank of England have stipulated to individual enforcement actions. Based on the FDIC’s findings, the bank made $1.9 million in remediation to over 900 harmed consumers.
“’Veterans and their families who were deceived into refinancing their VA loans were overcharged and did not receive the loan products promised, resulting in significant consumer harm,’ said FDIC Division of Depositor and Consumer Protection Director Mark Pearce. ‘This announcement demonstrates FDIC’s commitment to ensuring consumers are treated fairly, and that those responsible, including the bank and individuals employed by the bank, are held accountable for their illegal actions.’
“Section 5 prohibits banks from engaging in unfair or deceptive acts or practices. The FDIC determined that the bank, through one of its loan production offices (LPOs), violated Section 5 by misrepresenting to consumers that they would be able to skip multiple loan payments when refinancing a Department of Veterans Affairs (VA) mortgage loan. The FDIC also determined that loan officers’ or LPO’s misrepresented to consumers their relationship with the VA.
“Section 8(a) of RESPA prohibits giving or accepting a thing of value in exchange for the referral of settlement service business. RESPA was enacted to enable consumers to better understand the home purchase and settlement process and, where possible, to reduce settlement costs. The FDIC determined the bank entered into certain co-marketing arrangements and marketing service agreements in which the bank and real estate brokers agreed to market their services together using online platforms. Further, the bank also entered into desk rental agreements whereby the bank rented space from realtors and entered into agreements with online/digital platforms for lead generation.
“These arrangements and agreements resulted in the payment of fees by the bank to real estate brokers and online/digital platforms for their referrals of mortgage loan business, in violation of REPSA. Lastly, the FDIC determined the bank brokered certain reverse mortgage loans where broker fees made to the bank constituted things of value provided in return for loan referrals in violation of RESPA Section 8.
“The FDIC also determined that the bank failed to provide consumers with firm offers of credit and required disclosures as required by the FCRA, and the bank failed to report accurate data on its 2021 loan application register in violation of HMDA.
“In addition to the settlement with the bank, the FDIC also announces settlements with nine former employees of one of the bank’s LPOs for violations of Section 5 associated with deceptive and unfair practices involving VA refinance loans by: (1) luring consumers to apply for mortgage loans with low, unavailable loan prices that would not be honored and then subsequently increasing the price before closing the loan; (2) misrepresenting that consumers could skip two months of their mortgage payments; and (3) misrepresenting the LPO’s affiliation with the VA. These nine settlements include, but are not limited to, the following: Ryan Qarana, Assistant Branch Manager: Stipulated to a Prohibition Order and Order to Pay CMP in the amount of $100,000 for violations of Section 5 and engaging or participating in unsafe or unsound practices; Jasmine Jonna, Sales Manager: Stipulated to a Prohibition Order and Order to Pay CMP in the amount of $12,000 for violations of Section 5 and engaging in unsafe or unsound practices; Zack Jabro, Branch Manager: Stipulated to an Order to Pay CMP in the amount of $110,000 for engaging in unsafe and unsound practices.
“In addition to the CMP, the FDIC issued a Consent Order that requires the bank to take affirmative steps to ensure a Compliance Management System that effectively identifies, addresses, monitors, and controls consumer protection.”
Any questions about adhering to regulations? Talk to an attorney.
Capital Markets
In the ongoing battle against inflation, recent data has shown signs of progress but also lingering challenges for the Federal Reserve. Despite efforts to curb inflationary pressures through higher borrowing costs, reaching the Fed’s 2 percent inflation target remains elusive. A slight easing in the core consumer price index in April provided some relief, along with stagnant retail sales indicating cautious consumer behavior.
Yet, interest rate cuts are likely delayed due to persistent inflation surprises, particularly in service prices and fuel costs driven by global tensions. The Fed at its most recent meeting announced a slowdown in the reduction of its balance sheet, a move signaling a shift towards less restrictive monetary policy. However, inflationary expectations remain a concern, with Fed Chair Jerome Powell noting the surprise uptick in inflation and signaling a stance of maintaining current interest rates rather than raising them.
Outside of consumer and producer price inflation stats, there were plenty of non-inflationary economic releases last week that continue to help shape the overall economic narrative. Housing starts were disappointing, reflecting the impact of rising mortgage rates on buyer sentiment and construction activity. Despite a surge in multifamily developments, single-family starts declined, exacerbating worries about inventory. Unit labor costs suggested inflationary pressures from the job market are easing. Industrial production remained flat, with manufacturing output declining, indicating a slowdown in economic activity. Retail sales reflected slower GDP growth projections for 2024. Put it all together and the economic outlook remains uncertain, with inflationary pressures and monetary policy adjustments shaping future prospects.
This week’s calendar contains much less first tier economic data than last week with updates on Fed surveys, flash S&P Global PMIs, housing-related data, durable goods orders, and Michigan sentiment before the early close ahead of the Memorial Day weekend. The minutes from the April 30/May 1 FOMC meeting will also be released on Wednesday. Regarding MBS, Class D 48-hours is today. And speaking of today, the calendar is all about Fed speakers without any economic releases of note. We begin the week with Agency MBS prices unchanged from Friday, the 10-year yielding 4.41 after closing last week at 4.42 percent, and the 2-year at 4.82 percent.
Employment
A 49-state licensed mortgage lender with a large servicing and strong capital base is seeking to expand retail footprint by partnering with large production teams or regional mortgage banks interested in a capital partnership. The goal of the relationship is to leverage back-office mortgage functions (e.g., secondary, technology, compliance, operations, and licensing) to provide you with long-term production growth opportunities. By partnering with us, you can utilize our mature systems to add loan officers and scale your operations across the US. If you are a strong retail loan origination team feeling constrained by layers of management, or an independent mortgage lender looking for new options for your team, we offer a compelling alternative to standard “branch” offerings. Confidential and serious inquiries can email Anjelica Nixt.
Movement Mortgage is dedicated to serving the veteran community! The Top 10 purchase lender will host its first-ever VA Summit on June 5, exclusively available to Movement loan officers. The event will feature keynote speakers, panels of expert VA home loan focused LOs, and more. Attendees will gain firsthand knowledge and insights into serving the veteran community. In addition to the VA Summit, Movement continues to support veterans in other ways as well, including through GraceWorks grants. These grants address the basic needs of veterans, from medical care to mental health initiatives. Most recently, the company has given grants to vital organizations like the EOD Warrior Foundation and Home Base. For more information on Movement’s VA initiatives, please visit movementmilitary.com.
(Hey, if you know someone who’s out of work, Ginnie Mae is hiring. Also, resumes can be posted for free at www.lendernews.com and employers can view them for a nominal charge for several months.)
U.S. Bank announced that John Hummel has been appointed to lead the East Market for Retail Home Lending. Hummel previously led the correspondent and Housing Finance Agency (HFA) business at U.S. Bank, a top 10 mortgage loan originator by volume. John will lead a team of 750 sales managers and mortgage loan originators that have grown the region to produce $7 billion in originations. Congratulations!
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Average 30-year mortgage rates are hovering in the high 6% range this week after spiking close to 7% in the wake of the latest inflation report last Wednesday, according to Zillow data.
March’s Consumer Price Index data came in hotter than expected, causing mortgage rates to rise. Until inflation slows further and the Federal Reserve is able to start lowering the federal funds rate, mortgage rates are likely to remain elevated.
Depending on what incoming data shows, we could even see rates tick above 7% for the first time since November 2023.
Next week, the US Bureau of Economic Analysis will release the latest personal consumption expenditures price index. The PCE price index is the Fed’s preferred measure of inflation.
If the latest PCE numbers support the narrative that inflation is remaining stubbornly high, mortgage rates could inch up further. But the PCE price index tracks a broader range of good and services than the CPI, so it’s possible this index could show some softening that didn’t appear in the CPI report.
Ultimately, it may take a few more months of data before we see inflation cool enough for the Fed to start cutting rates. Though they were initially pricing in a rate cut at the Fed’s meeting in June, investors are now betting that we won’t get the first cut until September, according to the CME FedWatch Tool. This will likely keep mortgage rates elevated throughout the spring and summer. But we could still see them go down later in 2024.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Increase (+0.28%)
The current average 30-year fixed mortgage rate is 6.89%, up 28 points from where it was this time last week, according to Zillow data. This rate is also up compared to a month ago, when it was 6.53%.
At 6.89%, you’ll pay $658 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Rise (+0.34%)
The average 20-year fixed mortgage rate is 34 points up from where it was last week, and is sitting at 6.64%. This time last month, the rate was 6.22%.
With a 6.64% rate on a 20-year term, your monthly payment will be $754 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
The average 15-year mortgage rate is 6.12%, just a single basis point higher than last week. It’s up slightly compared to this time last month, when it was 6.03%.
With a 6.12% rate on a 15-year term, you’ll pay $850 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Increase Slightly (+0.11%)
The 7/1 adjustable mortgage rate is up 11 basis points from a week ago, currently at 6.80%. It’s down from a month ago, when it was at 7.02%.
At 6.80%, your monthly payment would be $652 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Nearly Flat (+0.03%)
The average 5/1 ARM rate is 6.87%, a three-point increase from last week. It’s lower compared to where it was a month ago, when it was 7.06%.
Here’s how a 6.87% rate would affect you for the first five years: You’d pay $657 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Go Up (+0.19%)
The average 30-year FHA interest rate is 5.93% today, which is 19 basis points up from last week. This rate was 6.09% a month ago.
At 5.93%, you would pay $595 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Jump Above 6% (+0.42%)
The current VA mortgage rate is 6.25%, 42 basis points higher than this time last week. This rate was 5.95% a month ago.
With a 6.25% rate, your monthly payment would be $616 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Inch Down (-0.08%)
The average 30-year refinance rate is 6.98%, eight basis points lower than last week. It’s also down slightly compared to a month ago, when it was 7.08%.
Here’s how a 6.98% rate would affect your monthly payments: You’d pay $664 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Spike (+1.31%)
The current 20-year fixed refinance rate is 7.69%, which is up 131 basis points compared to a week ago. This rate was 6.53% this time last month.
A 7.69% rate on a 20-year term will result in a $817 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Tick Up (+0.15%)
The average 15-year fixed refinance rate is 6.59%, which is 15 points higher compared to last week. It’s also up compared to this time a month ago, when it was at 6.34%.
A 6.59% rate on a 15-year term means you’ll pay $876 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Drop a Full Percentage Point (-1.12%)
The average 7/1 ARM refinance rate is 6.49%, down 112 points from where it was last week. It’s also down a bit from a month ago, when it was 7.94%.
Refinancing into a 7/1 ARM with a 6.49% rate means your monthly payment toward principal and interest will be $631 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Fall (-0.76%)
The 5/1 ARM refinance rate is 6.41%, which is lower than it was this time last week. It’s also down a lot compared to this time last month, when it was 7.59%.
A 6.41% rate will result in a monthly payment of $626 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
The 30-year FHA refinance rate is 5.95%, which is 19 points higher than last week. This rate was 5.49% this time last month.
A 5.95% refinance rate would lead to a $596 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Inch Up (+0.12)
The average 30-year VA refinance rate is 5.91%, which is up 12 points compared to where it was was last week. This rate was 5.82% a month ago.
At 5.91%, your new monthly payment would be $594 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
Mortgage rates are down significantly this week. Average 30-year mortgage rates have dropped nearly 30 basis points from a week ago, according to Zillow data. And they could drop further this year.
As inflation slows and the economy comes into better balance, mortgage rates are expected to go down. Inflation has been a bit stickier than expected over the last few months, but Federal Reserve officials have indicated that they still believe it will continue to slow and enable them to start lowering the federal funds rate this year. This should take a lot of upward pressure off of mortgage rates and allow them to decrease.
Right now, investors are pricing in a Fed cut in June, according to the CME FedWatch Tool. So we could see mortgage rates start trending down more substantially in just a few months.
Current Mortgage Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Current Refinance Rates
Mortgage type
Average rate today
This information has been provided by
Zillow. See more
mortgage rates on Zillow
Real Estate on Zillow
Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Fall (-0.27%)
The current average 30-year fixed mortgage rate is 6.32%, down 27 points from where it was this time last week, according to Zillow data. This rate is also down compared to a month ago, when it was 6.59%.
At 6.32%, you’ll pay $620 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Go Down (-0.24%)
The average 20-year fixed mortgage rate is 24 points down from where it was last week, and is sitting at 5.99%. This time last month, the rate was 6.30%.
With a 5.99% rate on a 20-year term, your monthly payment will be $716 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Decrease (-0.33%)
The average 15-year mortgage rate is 5.64%, down from last week. It’s also down compared to this time last month, when it was 5.98%.
With a 5.64% rate on a 15-year term, you’ll pay $825 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Plunge (-0.60%)
The 7/1 adjustable mortgage rate is down 60 basis points from a week ago, currently at 6.18%. It’s also down from a month ago, when it was at 6.47%.
At 6.18%, your monthly payment would be $611 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Drop Nearly Half a Percentage Point (-0.49%)
The average 5/1 ARM rate is 6.51%, a 49-point decrease from last week. It’s down from where it was a month ago, when it was 6.74%.
Here’s how a 6.51% rate would affect you for the first five years: You’d pay $633 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Nearly Flat (+0.03%)
The average 30-year FHA interest rate is 5.65% today, which is just 3 basis points up from last week. This rate was 6.11% a month ago.
At 5.65%, you would pay $577 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Lower (-0.38%)
The current VA mortgage rate is 5.54%, 38 basis points lower than this time last week. This rate was 5.92% a month ago.
With a 5.54% rate, your monthly payment would be $570 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Increase (+0.69%)
The average 30-year refinance rate is 7.69%, 69 basis points higher than last week. It’s nearly flat compared to a month ago, when it was 7.65%.
Here’s how a 7.69% rate would affect your monthly payments: You’d pay $712 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Up Over a Full Percentage Point (+1.20%)
The current 20-year fixed refinance rate is 7.66%, which is 120 basis points up compared to a week ago. This rate was 6.42% this time last month.
A 7.66% rate on a 20-year term will result in a $815 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Go Up (+0.58%)
The average 15-year fixed refinance rate is 6.92%, which is more than half a percentage point higher compared to last week. It’s down just a little bit compared to this time a month ago, when it was at 6.99%.
A 6.92% rate on a 15-year term means you’ll pay $894 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Tick Down (-0.32%)
The average 7/1 ARM refinance rate is 6.83%, down 32 points from where it was last week. It’s up a bit from a month ago, when it was 6.69%.
Refinancing into a 7/1 ARM with a 6.83% rate means your monthly payment toward principal and interest will be $654 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Fall Dramatically (-1.11%)
The 5/1 ARM refinance rate is 6.44%, which is significantly lower than it was this time last week. It’s up a bit compared to this time last month, when it was 6.34%.
A 6.44% rate will result in a monthly payment of $628 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Drop a Bit (-0.10%)
The 30-year FHA refinance rate is 5.52%, which is 10 points lower than last week. This rate was 5.61% this time last month.
A 5.52% refinance rate would lead to a $569 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Decrease (-0.19%)
The average 30-year VA refinance rate is 5.56%, which is down compared to where it was was last week. This rate was 5.78% a month ago.
At 5.56%, your new monthly payment would be $572 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates also rose dramatically in 2023, though they started trending back down toward the end of the year. Though rates have been somewhat elevated recently, they should go down by the end of 2024.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
The VA home loan: Unbeatable benefits for veterans
For many who qualify, VA home loans are some of the best mortgages available.
Verify your VA loan eligibility. Start here
Backed by the U.S. Department of Veterans Affairs, VA loans are designed to help active-duty military personnel, veterans and certain other groups become homeowners at an affordable cost.
The VA loan asks for no down payment, requires no mortgage insurance, and has lenient rules about qualifying, among many other advantages.
Here’s everything you need to know about qualifying for and using a VA loan.
In this article (Skip to…)
Top 10 VA loan benefits
1. No down payment on a VA loan
Most home loan programs require you to make at least a small down payment to buy a home. The VA home loan is an exception.
Verify your VA loan eligibility. Start here
Rather than paying 5%, 10%, 20% or more of the home’s purchase price upfront in cash, with a VA loan you can finance up to 100% of the purchase price.
The VA loan is a true no-money-down home mortgage opportunity.
2. No mortgage insurance for VA loans
Typically, lenders require you to pay for mortgage insurance if you make a down payment that’s less than 20%.
This insurance — which is known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan — would protect the lender if you defaulted on your loan.
VA loans require neither a down payment nor mortgage insurance. That makes a VA-backed mortgage very affordable upfront and over time.
3. VA loans have a government guarantee
There’s a reason why the VA loan comes with such favorable terms.
The federal government guarantees these loans — meaning a portion of the loan amount will be repaid to the lender even if you’re unable to make monthly payments for whatever reason.
This guarantee encourages and enables private lenders to offer VA loans with exceptionally attractive terms.
4. You can shop for the best VA loan rates
VA loans are neither originated nor funded by the VA. They are not direct loans from the government. Furthermore, mortgage rates for VA loans are not set by the VA itself.
Instead, VA loans are offered by U.S. banks, savings-and-loans institutions, credit unions, and mortgage lenders — each of which sets its own VA loan rates and fees.
This means you can shop around and compare loan offers and still choose the VA loan that works best for your budget.
5. VA loans don’t allow a prepayment penalty
A VA loan won’t restrict your right to sell the property partway through your loan term.
There’s no prepayment penalty or early-exit fee no matter within what time frame you decide to sell your home.
Furthermore, there are no restrictions regarding a refinance of your VA loan.
You can refinance your existing VA loan into another VA loan via the agency’s Interest Rate Reduction Refinance Loan (IRRRL) program, or switch into a non-VA loan at any time.
6. VA mortgages come in many varieties
A VA loan can have a fixed rate or an adjustable rate. In addition, you can use a VA loan to buy a house, condo, new-built home, manufactured home, duplex, or other types of properties.
Or, it can be used for refinancing your existing mortgage, making repairs or improvements to your home, or making your home more energy-efficient.
The choice is yours. A VA-approved lender can help you decide.
Verify your VA loan eligibility. Start here
7. It’s easier to qualify for VA loans
Like all mortgage types, VA loans require specific documentation, an acceptable credit history, and sufficient income to make your monthly payments.
But, compared to other loan programs, VA loan guidelines tend to be more flexible. This is made possible because of the VA loan guarantee.
The Department of Veterans Affairs genuinely wants to make the loan process easier for military members, veterans, and qualifying military spouses to buy or refinance a home.
8. VA loan closing costs are lower
The VA limits the closing costs lenders can charge to VA loan applicants. This is another way that a VA loan can be more affordable than other types of loans.
Money saved on closing costs can be used for furniture, moving costs, home improvements, or anything else.
9. The VA offers funding fee flexibility
VA loans require a “funding fee,” an upfront cost based on your loan amount, your type of eligible service, your down payment size, and other factors.
Funding fees don’t need to be paid in cash, though. The VA allows the fee to be financed with the loan, so nothing is due at closing.
And, not all VA borrowers will pay it. VA funding fees are normally waived for veterans who receive VA disability compensation and for unmarried surviving spouses of veterans who died in service or as a result of a service-connected disability.
10. VA loans are assumable
Most VA loans are “assumable,” which means you can transfer your VA loan to a future home buyer if that person is also VA-eligible.
Assumable loans can be a huge benefit when you sell your home — especially in a rising mortgage rate environment.
If your home loan has today’s low rate and market rates rise in the future, the assumption features of your VA become even more valuable.
VA loan rates
The VA loan is viewed as one of the lowest-risk mortgage types available on the market.
Verify your VA loan eligibility. Start here
This safety allows banks to lend to veteran borrowers at lower interest rates.
Today’s VA loan rates*
Loan Type
Current Mortgage Rate
VA 30-year FRM
% (% APR)
Conventional 30-year FRM
% (% APR)
VA 15-year FRM
% (% APR)
Conventional 15-year FRM
% (% APR)
*Current rates provided daily by partners of the Mortgage Reports. See our loan assumptions here.
VA rates are more than 25 basis points (0.25%) lower than conventional rates on average, according to data collected by mortgage software company Ellie Mae.
Most loan programs require higher down payment and credit scores than the VA home loan. In the open market, a VA loan should carry a higher rate due to more lenient lending guidelines and higher perceived risk.
Yet the result of the Veterans Affairs efforts to keep veterans in their homes means lower risk for banks and lower borrowing costs for eligible veterans.
VA mortgage calculator
Eligibility
Am I eligible for a VA home loan?
Contrary to popular belief, VA loans are available not only to veterans, but also to other classes of military members.
Find and lock a low VA loan rate today. Start here
The list of eligible VA borrowers includes:
Active-duty service members
Members of the National Guard
Reservists
Surviving spouses of veterans
Cadets at the U.S. Military, Air Force or Coast Guard Academy
Midshipmen at the U.S. Naval Academy
Officers at the National Oceanic & Atmospheric Administration.
A minimum term of service is typically required.
Minimum service required for a VA mortgage
VA home loans are available to active-duty service members, veterans (unless dishonorably discharged), and in some cases, surviving family members.
To be eligible, you need to meet one of these service requirements:
You’ve served 181 days of active duty during peacetime
You’ve served 90 days of active duty during wartime
You’ve served six years in the Reserves or National Guard
Your spouse was killed in the line of duty and you have not remarried
Your eligibility for the VA home loan program never expires.
Veterans who earned their VA entitlement long ago are still using their benefit to buy homes.
The VA loan Certificate of Eligibility (COE)
What is a COE?
In order to show a mortgage company you are VA-eligible, you’ll need a Certificate of Eligibility (COE). Your lender can acquire one for you online, usually in a matter of seconds.
Verify your VA home loan eligibility. Start here
How to get your COE (Certificate of Eligibility)
Getting a Certificate of Eligibility (COE) is very easy in most cases. Simply have your lender order the COE through the VA’s automated system. Any VA-approved lender can do this.
Alternatively, you can order your certificate yourself through the VA benefits portal.
If the online system is unable to issue your COE, you’ll need to provide your DD-214 form to your lender or the VA.
Does a COE mean you are guaranteed a VA loan?
No, having a Certificate of Eligibility (COE) doesn’t guarantee a VA loan approval.
Your COE shows the lender you’re eligible for a VA loan, but no one is guaranteed VA loan approval.
You must still qualify for the loan based on VA mortgage guidelines. The guarantee part of the VA loan refers to the VA’s promise to the lender of repayment if the borrower defaults.
Qualifying for a VA mortgage
VA loan eligibility vs. qualification
Being eligible for VA home loan benefits based on your military status or affiliation doesn’t necessarily mean you’ll qualify for a VA loan.
You still have to qualify for a VA mortgage based on your credit, debt, and income.
Verify your VA loan eligibility. Start here
Minimum credit score for a VA loan
The VA has established no minimum credit score for a VA mortgage.
However, many VA mortgage lenders require minimum FICO scores of 620 or higher — so apply with many lenders if your credit score might be an issue.
Even VA lenders that allow lower credit scores don’t accept subprime credit.
VA underwriting guidelines state that applicants must have paid their obligations on time for at least the most recent 12 months to be considered satisfactory credit risks.
In addition, the VA usually requires a two-year waiting period following a Chapter 7 bankruptcy or foreclosure before it will insure a loan.
Borrowers in Chapter 13 must have made at least 12 on-time payments and secure the approval of the bankruptcy court.
Verify your VA loan home buying eligibility. Start here
VA loan debt-to-income ratios
The relationship of your debts and your income is called your debt-to-income ratio, or DTI.
VA underwriters divide your monthly debts (car payments, credit cards, and other accounts, plus your proposed housing expense) by your gross (before-tax) income to come up with your debt-to-income ratio.
For instance:
If your gross income is $4,000 per month
And your total monthly debt is $1,500 (including the new mortgage, property taxes and homeowners insurance, plus other debt payments)
Then your DTI is 37.5% (1500/4000=0.375)
A DTI over 41% means the lender has to apply additional formulas to see if you qualify under residual income guidelines.
VA residual income rules
VA underwriters perform additional calculations that can affect your mortgage approval.
Factoring in your estimated monthly utilities, your estimated taxes on income, and the area of the country in which you live, the VA arrives at a figure which represents your “true” costs of living.
It then subtracts that figure from your income to find your residual income (e.g. your money “left over” each month).
Think of the residual income calculation as a real-world simulation of your living expenses.
It is the VA’s best effort to ensure that military families have a stress-free homeownership experience.
Here is an example of how residual income works, assuming a family of four which is purchasing a 2,000 square-foot home on a $5,000 monthly income.
Future house payment, plus other debt payments: $2,500
Monthly estimated income taxes: $1,000
Monthly estimated utilities at $0.14 per square foot: $280
This leaves a residual income calculation of $1,220.
Now, compare that residual income to for a family of four:
Northeast Region: $1,025
Midwest Region: $1,003
South Region: $1,003
West Region: $1,117
The borrower in our example exceeds VA’s residual income standards in all parts of the country.
Therefore, despite the borrower’s debt-to-income ratio of 50%, the borrower could get approved for a VA loan.
Verify your VA loan eligibility. Start here
Qualifying for a VA loan with part-time income
You can qualify for this type of financing even if you have a part-time job or multiple jobs.
You must show a 2-year history of making consistent part-time income, and stability in the number of hours worked. The lender will make sure any income received appears stable. See our complete guide to getting a mortgage when you’re self-employed or work part-time.
VA funding fees and loan limits
About the VA funding fee
The VA charges an upfront fee to defray the costs of the program and make it sustainable for the future.
Veterans pay a lump sum that varies depending on the loan purpose and down payment amount.
The fee is normally wrapped into the loan. It does not add to the cash needed to close the loan.
Find out if you qualify for a VA loan. Start here
VA home purchase funding fees
Type of Military Service
Down Payment
Fee for First-Time Use
Fee for Subsequent Use
Active Duty, Reserves, and National Guard
None
2.3%
3.6%
5% or more
1.65%
1.65%
10% or more
1.4%
1.4%
VA cash-out refinance funding fees
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
2.3%
3.6%
VA streamline refinances (IRRRL) & assumptions
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
0.5%
0.5%
Manufactured home loans not permanently affixed
Type of Military Service
Fee for First-Time Use
Fee for Subsequent Uses
Active Duty, Reserves, and National Guard
1.0%
1.0%
VA loan limits in 2024
VA loan limits have been repealed, thanks to the Blue Water Navy Vietnam Veterans Act of 2019.
There is no maximum amount for which a home buyer can receive a VA loan, at least as far as the VA is concerned.
However, private lenders may set their own limits. So check with your lender if you are looking for a VA loan above local conforming loan limits.
Verify your VA loan eligibility. Start here
Eligible property types
Houses you can buy with a VA loan
VA mortgages are flexible about what types of property you can and can’t purchase. A VA loan can be used to buy a:
Detached house
Condo
New-built home
Manufactured home
Duplex, triplex or four-unit property
Find out if you qualify for a VA loan. Start here
You can also use a VA mortgage to refinance an existing loan for any of those types of properties.
VA loans and second homes
Federal regulations limit loans guaranteed by the Department of Veterans Affairs to “primary residences” only.
However, “primary residence” is defined as the home in which you live “most of the year.”
Therefore, if you own an out-of-state residence in which you live for more than six months of the year, this other home, whether it’s your vacation home or retirement property, becomes your official “primary residence.”
For this reason, VA loans are popular among aging military borrowers.
Buying a multi-unit home with a VA loan
VA loans allow you to buy a duplex, triplex, or four-plex with 100% financing. You must live in one of the units.
Buying a home with more than one unit can be challenging.
Mortgage lenders consider these properties riskier to finance than traditional, single-family residences, so you’ll need to be a stronger borrower.
VA underwriters must make sure you will have enough emergency savings, or cash reserves, after closing on your house. That’s to ensure you’ll have money to pay your mortgage even if a tenant fails to pay rent or moves out.
The minimum cash reserves needed after closing is six months of mortgage payments (covering principal, interest, taxes, and insurance – PITI).
Your lender will also want to know about previous landlord experience you’ve had, or any experience with property maintenance or renting.
If you don’t have any, you may be able to sidestep that issue by hiring a property management company. But that’s up to the individual lender.
Your lender will look at the income (or potential income) of the rental units, using either existing rental agreements or an appraiser’s opinion of what the units should fetch.
They’ll usually take 75% of that amount to offset your mortgage payment when calculating your monthly expenses.
VA loans and rental properties
You cannot use a VA loan to buy a rental property. You can, however, use a VA loan to refinance an existing rental home you once occupied as a primary home.
For home purchases, in order to obtain a VA loan, you must certify that you intend to occupy the home as your principal residence.
If the property is a duplex, triplex, or four-unit apartment building, you must occupy one of the units yourself. Then you can rent out the other units.
The exception to this rule is the VA’s Interest Rate Reduction Refinance Loan (IRRRL).
This loan, also known as the VA Streamline Refinance, can be used for refinancing an existing VA loan on a home where you currently live or where you used to live, but no longer do.
Check your VA IRRRL eligibility. Start here
Buying a condo with a VA loan
The VA maintains a list of approved condo projects within which you may purchase a unit with a VA loan.
At VA’s website, you can search for the thousands of approved condominium complexes across the U.S.
If you are VA-eligible and in the market for a condo, make sure the unit you’re interested in is approved.
As a buyer, you are probably not able to get the complex VA-approved. That’s up to the management company or homeowner’s association.
If a condo you like is not approved, you must use other financing like an FHA or conventional loan or find another property.
Note that the condo must meet FHA or conventional guidelines if you want to use those types of financing.
Veteran mortgage relief with the VA loan
The U.S. Department of Veterans Affairs, or VA, provides home retention assistance. The VA intervenes when a veteran is having trouble making home loan payments.
The VA works with loan servicers to offer loan options to the veteran, other than foreclosure.
Find out if you qualify for a VA loan. Start here
In fiscal year 2019, the VA made over 400,000 contact actions to reach borrowers and loan servicers. The intent was to work out a mutually agreeable repayment option for both parties.
More than 100,000 veteran homeowners avoided foreclosure in 2019 alone thanks to this effort.
The initiative has saved the taxpayer an estimated $2.6 billion. More importantly, vast numbers of veterans and military families got another chance at homeownership.
When NOT to use a VA loan
If you have good credit and 20% down
A primary advantage to VA home loans is the lack of mortgage insurance.
However, the VA guarantee does not come free of charge. Borrowers pay an upfront funding fee, which they usually choose to add to their loan amount.
The fee ranges from 1.4% to 3.6%, depending on the down payment percentage and whether the home buyer has previously used his or her VA mortgage eligibility. The most common fee is 2.3%.
Find out if you qualify for a VA loan. Start here
On a $200,000 purchase, a 2.3% fee equals $4,600.
However, buyers who choose a conventional mortgage and put 20% down get to avoid mortgage insurance and the upfront fee. For these military home buyers, the VA funding fee might be an unnecessary expense.
The exception: Mortgage applicants whose credit rating or income meets VA guidelines but not those of conventional mortgages may still opt for VA.
If you’re on the “CAIVRS” list
To qualify for a VA loan, you must prove you have made good on previous government-backed debts and that you have paid taxes.
The Credit Alert Verification Reporting System, or “CAIVRS,” is a database of consumers who have defaulted on government obligations. These individuals are not eligible for the VA home loan program.
If you have a non-veteran co-borrower
Veterans often apply to buy a home with a non-veteran who is not their spouse.
This is okay. However, it might not be their best choice.
As the veteran, your income must cover your half of the loan payment. The non-veteran’s income cannot be used to compensate for the veteran’s insufficient income.
Plus, when a non-veteran owns half the loan, the VA guarantees only half that amount. The lender will require a 12.5% down payment for the non-guaranteed portion.
The Conventional 97 mortgage, on the other hand, allows down payments as low as 3%.
Another low-down-payment mortgage option is the FHA home loan, for which 3.5% down is acceptable.
The USDA home loan also requires zero down payment and offers similar rates to VA loans. However, the property must be within USDA-eligible areas.
If you plan to borrow with a non-veteran, one of these loan types might be your better choice.
Explore your mortgage options. Start here
If you apply with a credit-challenged spouse
In states with community property laws, VA lenders must consider the credit rating and financial obligations of your spouse. This rule applies even if he or she will not be on the home’s title or even on the mortgage.
Such states are as follows.
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
A spouse with less-than-perfect credit or who owes alimony, child support, or other maintenance can make your VA approval more challenging.
Apply for a conventional loan if you qualify for the mortgage by yourself. The spouse’s financial history and status need not be considered if he or she is not on the loan application.
Verify your VA loan home buying eligibility. Start here
If you want to buy a vacation home or investment property
The purpose of VA financing is to help veterans and active-duty service members buy and live in their own home. This loan is not meant to build real estate portfolios.
These loans are for primary residences only, so if you want a ski cabin or rental, you’ll have to get a conventional loan.
If you want to purchase a high-end home
Starting January 2020, there are no limits to the size of mortgage a lender can approve.
However, lenders may establish their own limits for VA loans, so check with your lender before applying for a large VA loan.
Spouses and the VA mortgage program
What spouses are eligible for a VA loan?
What if the service member passes away before he or she uses the benefit? Eligibility passes to an unremarried spouse, in many cases.
Find and lock a low VA loan rate today. Start here
For the surviving spouse to be eligible, the deceased service member must have:
Died in the line of duty
Passed away as a result of a service-connected disability
Been missing in action, or a prisoner of war, for at least 90 days
Been a totally disabled veteran for at least 10 years prior to death, and died from any cause
Also eligible are remarried spouses who married after the age of 57, on or after December 16, 2003.
In these cases, the surviving spouse can use VA loan eligibility to buy a home with zero down payment, just as the veteran would have.
VA loan benefits for surviving spouses
Surviving spouses have an additional VA loan benefit, however. They are exempt from the VA funding fee. As a result, their loan balance and monthly payment will be lower.
Surviving spouses are also eligible for a VA streamline refinance when they meet the following guidelines.
The surviving spouse was married to the veteran at the time of death
The surviving spouse was on the original VA loan
VA streamline refinancing is typically not available when the deceased veteran was the only applicant on the original VA loan, even if he or she got married after buying the home.
In this case, the surviving spouse would need to qualify for a non-VA refinance, or a VA cash-out loan.
A cash-out mortgage through VA requires the military spouse to meet home purchase eligibility requirements.
If this is the case, the surviving spouse can tap into the home’s equity to raise cash for any purpose, or even pay off an FHA or conventional loan to eliminate mortgage insurance.
Qualifying if you receive (or pay) child support or alimony
Buying a home after a divorce is no easy task.
If, prior to your divorce, you lived in a two-income household, you now have less spending power and a reduced monthly income for purposes of your VA home loan application.
With less income, it can be harder to meet both the VA Home Loan Guaranty’s debt-to-income (DTI) guidelines and the VA residual income requirement for your area.
Receiving alimony or child support can counteract a loss of income.
Mortgage lenders will not require you to provide information about your divorce agreement’s alimony or child support terms, but if you’re willing to disclose, it can count toward qualifying for a home loan.
Different VA-approved lenders will treat alimony and child support income differently.
Typically, you will be asked to provide a copy of your divorce settlement or other court paperwork to support the alimony and child support payments.
Lenders will then want to see that the payments are stable, reliable, and likely to continue for another 36 months, at least.
You may also be asked to show proof that alimony and child support payments have been made in the past reliably, so that the lender may use the income as part of your VA loan application.
If you are the payor of alimony and child support payments, your debt-to-income ratio can be harmed.
Not only might you be losing the second income of your dual-income households, but you’re making additional payments that count against your outflows.
VA mortgage lenders make careful calculations with respect to such payments.
You can still get approved for a VA loan while making such payments — it’s just more difficult to show sufficient monthly income.
VA loan assumption
What is VA loan assumption?
One benefit for home buyers is that VA loans are assumable. When you assume a mortgage loan, you take over the current homeowner’s monthly payment.
Verify your VA loan home buying eligibility. Start here
That could be a big advantage if mortgage rates have risen since the original owner purchased the home. The buyer would be able to acquire a low-rate, affordable loan — and it could make it easier for the seller to find a willing buyer in a tough market.
VA loan assumption savings
Buying a home via an assumable mortgage loan is even more appealing when interest rates are on the rise.
For example:
Say a seller-financed $200,000 for their home in 2013 at an interest rate of 3.25% on a 30-year fixed loan
Using this scenario, their principal and interest payment would be $898 per month
Let’s assume current 30-year fixed rates averaged 4.10%
If you financed $200,000 at 4.10% for a 30-year loan term, your monthly principal and interest payment would be $966 per month
Additionally, because the seller has already paid four years into the loan term, they’ve already paid nearly $25,000 in interest on the loan.
By assuming the loan, you would save $34,560 over the 30-year loan due to the difference in interest rates. You would also save roughly $25,000 thanks to the interest already paid by the sellers.
That comes out to a total savings of almost $60,000!
How to assume (take on) a VA loan
There are currently two ways to assume a VA loan.
The new buyer is a qualified veteran who “substitutes” his or her VA eligibility for the eligibility of the seller
The new home buyer qualifies through VA standards for the mortgage payment. This is the safest method for the seller as it allows the loan to be assumed knowing that the new buyer is responsible for the loan, and the seller is no longer responsible for the loan
The lender and/or the VA needs to approve a loan assumption.
Loans serviced by a lender with automatic authority may process assumptions without sending them to a VA Regional Loan Center.
For lenders without automatic authority, the loan must be sent to the appropriate VA Regional Loan Center for approval. This loan process will typically take several weeks.
When VA loans are assumed, it’s the servicer’s responsibility to make sure the homeowner who assumes the property meets both VA and lender requirements.
VA loan assumption requirements
For a VA mortgage assumption to take place, the following conditions must be met:
The existing loan must be current. If not, any past due amounts must be paid at or before closing
The buyer must qualify based on VA credit and income standards
The buyer must assume all mortgage obligations, including repayment to the VA if the loan goes into default
The original owner or new owner must pay a funding fee of 0.5% of the existing principal loan balance
A processing fee must be paid in advance, including a reasonable estimate for the cost of the credit report
Find out if you qualify for a VA loan. Start here
Finding assumable VA loans
There are several ways for home buyers to find an assumable VA loan.
Believe it or not, print media is still alive and well. Some home sellers advertise their assumable home for sale in the newspaper, or in a local real estate publication.
There are a number of online resources for finding assumable mortgage loans.
Websites like TakeList.com and Zumption.com give homeowners a way to showcase their properties to home buyers looking to assume a loan.
With the help of the Multiple Listing Service (MLS), real estate agents remain a great resource for home buyers.
This applies to home buyers specifically searching for assumable VA loans as well.
How do I apply for a VA loan?
You can easily and quickly have a lender pull your certificate of eligibility (COE) to make sure you’re able to get a VA loan.
Most mortgage lenders offer VA home loans. So you’re free to shop and compare rates with just about any company that catches your eye.
Getting a VA loan for your new home is similar in many ways to securing any other purchase loan. Once you find an ideal home in your price range, you make a purchase offer, and then undergo VA appraisal and underwriting.
VA appraisal ensures that the home meets its minimum property requirements (MPRs) and is structurally sound and safe for occupancy.
What’s more, VA-specific mortgage lenders are actually some of the highest-rated (and lowest-priced) on the market. Here are a few we’d recommend checking out.
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Speaking with your current lender about refinancing options is a great first step if you currently have low credit.
Key Takeaways:
Refi programs exist to specifically help low-credit applicants.
A cosigner with a high credit score can help you successfully apply for refinancing.
Mortgages with APR may be more costly in the long run.
When you refinance your mortgage, you’re basically replacing that mortgage with a different loan. Your lender will then use that new mortgage to pay off the old one first, so you’ll only have one monthly payment.
A refinance can have different interest rates and terms. A lower interest rate can result in less expensive monthly payments and reduce the overall cost of your loan. Conversely, shorter terms can help you pay down a new loan much faster via larger monthly payments.
It’s certainly possible to refinance with bad credit once you know your options. We’ll discuss several popular options and explain how Credit.com can help you find strong mortgage rates based on your current circumstances.
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Can You Refinance With Bad Credit?
Your credit score plays a major role when you apply for a loan, but refinancing and is certainly possible. In fact, Federal Housing Administration (FHA) loans can help you secure financing with a credit score between 500 and 579 if you provide a 10% down payment.
Five Options for Refinancing With Bad Credit
It’s possible to secure new funding with low credit. Below are five of the most popular options for low-credit refinancing.
1. Talk to Your Current Lender
If you’re in good standing with your current mortgage lender, talk to them about refinance options. Being in good standing means you’ve regularly made on-time mortgage payments and haven’t had any issues with your lender.
Lenders make money on your mortgage. If you want to refinance to extend your mortgage payments—to reduce your monthly payments, for example—the lender could make more money off your loan in the future. Your current lender may want to keep your business and could be more likely to work with you.
2. Use a Cosigner
A cosigner is someone willing to help you take on the responsibility of making regular mortgage payments. Cosigners with good credit can help you secure funding you normally wouldn’t be eligible for.
Cosigners can be spouses, relatives, close friends, or business partners. If you’re attempting this approach, make sure you have a strong financial plan to show your cosigner that you’ll make timely payments. With a cosigner, your credit history is linked, so missing a payment can hurt both your credit scores.
3. Use an FHA Streamline, Simple, or Cash-Out Refinance Loan
FHA-backed mortgages are known to have less strict credit requirements, and the same applies to refinances. If you have bad credit and late payments on your credit report, you might consider FHA programs—especially if you already have an FHA loan.
Streamline FHA Refinance
Streamline FHA refinance programs are for those with an FHA mortgage who want to refinance with an FHA loan. Your mortgage must be current, and you can’t get more than $500 cash out of this refinance. Appraisals aren’t a requirement for these loans.
There are two types of streamline loans:
Credit qualifying: You provide the income and credit documentation you normally would when getting a mortgage. If you’re taking one of the borrowers off the mortgage during the refi, you must use this option.
Noncredit qualifying: At least some credit review—and a review of past performance on your existing mortgage—is required. But it may not be as comprehensive as a credit-qualifying loan.
Simple Refinance
Simple refinance is another option that doesn’t allow cash out. This program is only relevant for refinances on primary residences or secondary residences with HUD approval. You also have to be up-to-date on mortgage payments.
Cash-Out Refinance
FHA cash-out refinance programs let you get some cash back during refinance if you have equity in your home. You’re limited to 85% to 95% of equity, depending on the status of your current mortgage.
To qualify, you must have had the property for at least 12 months and made the last 12 mortgage payments in the month they were due. Other credit and financial factors may also apply.
4. Apply for a VA Refi Program
The VA provides several refinance options for those who are eligible because they’re qualifying veterans, active-duty service members or eligible family members. As with FHA refinance options, you can find programs that support straight or cash-out refinance.
Interest Rate Reduction Refinance Loan
This is a refinance option that gets veterans a lower interest rate on their mortgage. Here’s who’s eligible:
Veterans
Active-duty service members
Members of the National Guard or Reserves called to active duty
Some surviving spouses
Current Reserve and National Guard members (after six years of qualifying service)
Cash-Out Refinance
This VA refinance has the same eligibility requirements as the Interest Rate Reduction Refinance Loan. The loans typically come at market rates and include a VA funding fee.
5. Consider the USDA Streamlined Assist Refinance Program
The United States Department of Agriculture (USDA) offers a few refinance programs but notes that the Streamlined Assist refi is the most popular. It doesn’t require an appraisal unless a subsidy is involved. A full credit review is not required. However, the loan must have been paid on time for the previous 12 months and is only available for certain types of homes.
Improve Your Credit Before You Refinance
If you can’t find a refinance that works with your credit score—or you don’t find one that works for you—you might want to improve your credit before applying for a refi. Start by accessing 28 of your FICO® scores via ExtraCredit® to see where you stand.
You can improve your credit by:
Making on-time payments. Payment history accounts for a large part of your credit score.
Paying down revolving credit, such as credit cards. Credit utilization is another big part of your score.
Dispute credit errors on your report with the credit bureaus to repair your score.
Find the Right Mortgage for You
No matter where you’re at, finding a mortgage is an exciting—and overwhelming—process. Whether you’re ready to start looking for a refinance now or want to wait until you’ve improved your credit, Credit.com can help you with your goals.
We offer tools that help you find competitive mortgage rates and provide a mortgage calculator for anticipating your financial needs.
Our experts answer readers’ home-buying questions and write unbiased product reviews (here’s how we assess mortgages). In some cases, we receive a commission from our partners; however, our opinions are our own.
Mortgage rates down for the most part this week, though current mortgage refinance rates have inched up on a few different terms compared to a week ago. But in spite of some fluctuations, rates are down dramatically from last month.
Average 30-year mortgage rates are continuing to inch down closer to 6%, and they’re currently the lowest they’ve been since spring 2023.
Most experts believe that mortgage rates will continue to go down in 2024 as the economy continues to normalize and the Federal Reserve is able to start lowering the federal funds rate.
The Fed can impact mortgage rates indirectly through changes to the federal funds rate, and the central bank has indicated it will likely start cutting this rate next year. This will take a lot of the upward pressure off of mortgage rates, allowing them to ease. After watching mortgage rates skyrocket over the last couple of years, hopeful homebuyers can finally look forward to improved mortgage affordability in the new year.
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Current Refinance Rates
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
Click “More details” for tips on how to save money on your mortgage in the long run.
Mortgage Rates for Buying a Home
30-Year Fixed Mortgage Rates Fall (-0.16%)
The current average 30-year fixed mortgage rate is 6.15%, down 16 basis points since this time last week. This rate is down significantly compared to a month ago, when it was 6.93%.
At 6.15%, you’ll pay $609 monthly toward principal and interest for every $100,000 you borrow.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
20-Year Fixed Mortgage Rates Drop (-0.21%)
The average 20-year fixed mortgage rate is also down a bit from last week, and is sitting at 5.71%. This time last month, the rate was 6.57%.
With a 5.71% rate on a 20-year term, your monthly payment will be $700 toward principal and interest for every $100,000 borrowed.
A 20-year term isn’t as common as a 30-year or 15-year term, but plenty of mortgage lenders still offer this option.
15-Year Fixed Mortgage Rates Inch Down (-0.09%)
The average 15-year mortgage rate is 5.44%, just a few points down from from last week. It’s now much lower compared to this time last month, when it was 6.32%.
With a 5.44% rate on a 15-year term, you’ll pay $814 each month toward principal and interest for every $100,000 borrowed.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
7/1 ARM Rates Creep Up (+0.06%)
The 7/1 adjustable mortgage rate is up six points from a week ago, currently at 6.74%. But it’s down compared to this time last month, when it was at 6.95%.
At 6.74%, your monthly payment would be $648 toward principal and interest for every $100,000 borrowed — but only for the first seven years. After that, your payment would increase or decrease annually depending on the new rate.
5/1 ARM Rates Fall Half a Percentage Point (-0.53%)
The average 5/1 ARM rate is 6.17%, a 53-point drop from last week. It’s also lower than it was a month ago, when it was 7.25%.
Here’s how a 6.17% rate would affect you for the first five years: You’d pay $611 per month toward principal and interest for every $100,000 you borrow.
30-year FHA Rates Essentially Flat (-0.02%)
The average 30-year FHA interest rate is 5.67% today, which is down just two basis points from this time last week. This rate was 6.02% a month ago.
At 5.67%, you would pay $579 monthly toward principal and interest for every $100,000 borrowed.
FHA mortgages are good choices if you don’t qualify for a conforming mortgage. You’ll need a 3.5% down payment and 580 credit score to qualify.
30-year VA Rates Go Down (-0.19%)
The current VA mortgage rate is 5.45%, 19 basis points down from this time last week. This rate was 6.11% a month ago.
With a 5.45% rate, your monthly payment would be $565 toward principal and interest for every $100,000 you borrow.
Mortgage Refinance Rates
30-Year Fixed Refinance Rates Go Up (+0.10%)
The average 30-year refinance rate is 6.33%, just 10 basis points higher than last week. But it’s down quite a bit compared to a month ago, when it was 7.17%.
Here’s how a 6.33% rate would affect your monthly payments: You’d pay $621 toward principal and interest for every $100,000 borrowed.
Refinancing into a 30-year term can land you lower monthly payments, but you’ll ultimately pay more by refinancing into a longer term.
20-Year Fixed Refinance Rates Inch Up (+0.08%)
The current 20-year fixed refinance rate is 5.89%, which is just eight basis points up compared to a week ago. This rate was 6.93% this time last month.
A 5.89% rate on a 20-year term will result in a $710 monthly payment toward principal and interest for every $100,000 you borrow.
15-Year Fixed Refinance Rates Increase (+0.26%)
The average 15-year fixed refinance rate is 6.00%, which is up 26 points compared to last week. This rate is lower compared to this time a month ago, when it was at 6.78%.
A 6.00% rate on a 15-year term means you’ll pay $844 each month toward principal and interest for every $100,000 borrowed.
Refinancing into a 15-year term can save you money in the long run, because you’ll get a lower rate and pay off your mortgage faster than you would with a 30-year term. But it could result in higher monthly payments.
7/1 ARM Refinance Rates Decrease (-0.44%)
The average 7/1 ARM refinance rate is 6.10%, down from where it was last week. A month ago, it was much higher at 7.24%.
Refinancing into a 7/1 ARM with a 6.10% rate means your monthly payment toward principal and interest will be $606 for every $100,000 you borrow. This will be the payment for the first seven years, then your rate will change annually unless you refinance again.
5/1 ARM Refinance Rates Tick Down (-0.27%)
The 5/1 ARM refinance rate is 6.30%, 27 basis points down from last week. It’s also down compared to this time last month, when it was 7.28%.
A 6.30% rate will result in a monthly payment of $619 toward principal and interest for every $100,000 borrowed. You’ll pay this amount for the first five years of your new mortgage.
30-Year FHA Refinance Rates Drop (-0.23%)
The 30-year FHA refinance rate is 5.53%, which down a bit compared to last week. This rate was 6.09% this time last month.
A 5.53% refinance rate would lead to a $570 monthly payment toward the principal and interest per $100,000 borrowed.
30-Year VA Refinance Rates Increase Very Slightly (+0.07%)
The average 30-year VA refinance rate is 5.62%, which is seven basis points higher than it was last week. This rate was 6.50% a month ago.
At 5.62%, your new monthly payment would be $575 toward principal and interest for every $100,000 you borrow.
Are Mortgage Rates Going Down?
Mortgage rates started ticking up from historic lows in the second half of 2021 and increased over three percentage points in 2022. Mortgage rates have risen throughout 2023, and they’re higher than they were in December 2022.
But rates have started trending down in recent weeks, and we should continue to see them fall in 2024 and 2025.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease further. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.