A variety of notable mortgage rates boasted increases today. While 15-year fixed mortgage rates stayed the same, interest rates on 30-year fixed mortgages crept higher. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, increased. Although mortgage rates fluctuate, they are lower than they've been in years. For those looking to lock in a fixed rate, now is a good time to buy a home. But as always, make sure to first take into account your personal goals and circumstances before buying a house, and shop around for a lender who can best meet your needs.
Compare national mortgage rates from various lenders
30-year fixed-rate mortgages
For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.26%, which is an increase of 1 basis point from one week ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will often have a greater 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 2.50%, which is the same rate as this 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. However, if you're able to afford the monthly payments, there are several benefits to a 15-year loan. These include usually being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 3.28%, an uptick of 2 basis points compared to last week. With an ARM mortgage, you'll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, changes in the market may cause your interest rate to increase after that time, as detailed 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. If not, changes in the market might significantly increase your interest rate.
Mortgage rate trends
We use information collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. 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||3.26%||3.25%||+0.01|
|15-year fixed rate||2.50%||2.50%||N/C|
|30-year jumbo mortgage rate||3.08%||3.08%||N/C|
|30-year mortgage refinance rate||3.34%||3.32%||+0.02|
Rates accurate as of April 7, 2021.
How to find the best mortgage rates
You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. When shopping around for home mortgage rates, consider your goals and current finances. A range of factors -- including your down payment, credit score, loan-to-value ratio and debt-to-income ratio -- will all affect your mortgage rate. Having a good credit score, a higher 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 mortgage rate, factors including closing costs, fees, discount points and taxes might also impact the cost of your home. Be sure to comparison shop with multiple lenders -- such as credit unions and online lenders in addition to local and national banks -- in order to get a loan that works best for you.
How does the loan term impact my mortgage?
One important thing you should consider when choosing a mortgage is the loan term, or payment schedule. The most common loan terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Another important distinction is between fixed- and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are the same for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (commonly five, seven or 10 years). After that, the rate fluctuates annually based on the market rate.
When choosing between a fixed- and adjustable-rate mortgage, you should think about how long you plan to live in your house. For those who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. If you aren't planning to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage might give you a better deal. The "best" loan term all all depends on an individual's situation and goals, so make sure to take into consideration what's important to you when choosing a mortgage.