A few significant mortgage rates inched upward today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both inched up. We also saw an upswing in the average rate of 5/1 adjustable-rate mortgages. Mortgage interest rates are never set in stone, but interest rates are the lowest they've been in years. Because of this, right now is a good time for prospective homebuyers to get a fixed rate. Before you buy a house, remember to take into account your personal needs and financial situation, and shop around for different lenders to find the right one for you.
Here are mortgage rates for different types of loan
30-year fixed-rate mortgages
The 30-year fixed-mortgage rate average is 3.09%, which is an increase of 4 basis points as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will typically have a higher interest rate than a 15-year fixed rate mortgage -- but also a lower monthly payment. You won't be able to pay off your house as quickly and you'll pay more interest over time, but a 30-year fixed mortgage is a good option if you're looking to minimize your monthly payment.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.37%, which is an increase of 2 basis points from the same time last week. You'll definitely have a bigger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the better deal, if you can afford the monthly payments. You'll most likely get a lower interest rate, and you'll pay less interest in total because you're paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 3.11%, an addition of 4 basis points compared to a week ago. You'll usually get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 ARM in the first five years of the mortgage. But since the rate changes with the market rate, you might end up paying more after that time, as described in the terms of your loan. Because of this, an ARM may be a good option if you plan to sell or refinance your house before the rate changes. But if that's not the case, you might be on the hook for a much higher interest rate if the market rates shift.
Mortgage rate trends
We use information collected by Bankrate, which is owned by the same parent company as CNET, to track daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Today's mortgage interest rates| Loan term | Today's Rate | Last week | Change |
|---|---|---|---|
| 30-year mortgage rate | 3.09% | 3.05% | +0.04 |
| 15-year fixed rate | 2.37% | 2.35% | +0.02 |
| 30-year jumbo mortgage rate | 3.16% | 3.14% | +0.02 |
| 30-year mortgage refinance rate | 3.15% | 3.09% | +0.06 |
Rates accurate as of May 21, 2021.
How to shop for the best mortgage rate
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. In order to find the best home mortgage, you'll need to take into account your goals and overall financial situation. Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. Aside from the interest rate, other costs including closing costs, fees, discount points and taxes might also factor into the cost of your home. Be sure to speak with a variety of lenders -- such as local and national banks, credit unions and online lenders -- and comparison shop to find the best mortgage loan for you.
What's the best loan term?
One important consideration when choosing a mortgage is the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are fixed for the life of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (commonly five, seven or 10 years), then the rate adjusts annually based on the market interest rate.
When deciding between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to live in your home. Fixed-rate mortgages might be a better fit for people who plan on staying in a home for a while. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you don't plan to keep your new house for more than three to 10 years, however, an adjustable-rate mortgage could give you a better deal. The best loan term all is entirely dependent on your situation and goals, so make sure to think about what's important to you when choosing a mortgage.
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May 21, 2021 at 06:00PM
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Here are today's mortgage rates on May 21, 2021: Rates go up - CNET
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