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Mortgage interest rates for Jan. 14, 2022: Rates climb, but you can still get a good rate

Mortgage rates nudged up today. Here's what that means for you if you're in the market for a new home.

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Some important mortgage rates crept upward today. Fifteen-year fixed and 30-year fixed mortgage rates both increased. For variable rates, the 5/1 adjustable-rate mortgage also increased. Although mortgage rates are dynamic, they are lower than they've been in years. For those looking to get a fixed rate, now is an optimal time to finance a house. Before you purchase a house, remember to think about your personal needs and financial situation, and compare offers from multiple lenders to find the best one for you.

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 3.51%, which is a growth of 8 basis points compared to 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 rate mortgage will usually have a lower monthly payment than a 15-year one -- but often a higher interest rate. Although you'll pay more interest over time -- you're paying off your loan over a longer timeframe -- if you're looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.83%, which is an increase of 14 basis points compared to a week ago. 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, as long as you're able to afford the monthly payments. These include typically 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 3.51%, an increase of 6 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 might 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 may be on the hook for a significantly higher interest rate if the market rates shift.

Mortgage rate trends

We use rates 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 US:

Current average mortgage interest rates

Loan typeInterest rateA week agoChange
30-year fixed rate3.51%3.43%+0.08
15-year fixed rate2.83%2.69%+0.14
30-year jumbo mortgage rate2.75%2.73%+0.02
30-year mortgage refinance rate 3.51%3.44%+0.07

Updated on Jan. 14, 2022.

How to find the best mortgage rates

To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. Make sure to think aboutyour current financial situation and your goals when searching for a mortgage. A range of factors -- including your down payment, credit score, loan-to-value ratio and debt-to-income ratio -- will all affect your mortgage interest rate. Generally, you want a higher credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate. The interest rate isn't the only factor that affects the cost of your home. You should also consider other costs such as fees, closing costs, taxes and discount points. Be sure to shop around with multiple lenders -- including credit unions and online lenders in addition to local and national banks -- in order to get a mortgage that works best for you.

What's the best loan term?

When picking a mortgage, you should consider 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. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are set for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (typically five, seven or 10 years). After that, 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 stay in your house. For people who plan on living long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable in the long term. However you might get a better deal with an adjustable-rate mortgage if you only have plans to to keep your home for a couple years. The best loan term all all depends on an individual's situation and goals, so make sure to consider what's important to you when choosing a mortgage.