Today's mortgage rates drop from last week. Here's what to know

Major mortgage rates dropped off today for both 15- and 30-year fixed mortgages as well as for 5/1 adjustable-rate mortgages. Although mortgage rates fluctuate regularly, they've been at a historic low. If you plan to finance a house, now might be an ideal time to lock in a good rate. But as always, make sure to first consider your personal goals and circumstances before buying a house, and shop around to find a lender who can best meet your needs.

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you'll pay is 3.14%, which is a decrease of 5 basis points as seven days ago. (A basis point is equivalent to 0.01%.) The most frequently used loan term is a 30-year fixed mortgage. While a 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one, it'll often have 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 2.44%, which is a decrease of 2 basis points compared to a week ago. You'll definitely have a larger 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, as long as you can 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 adjustable-rate mortgage has an average rate of 3.13%, a downtick of 5 basis points compared to last week. With an adjustable-rate mortgage mortgage, you'll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, you could end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. 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, shifts in the market may 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 daily mortgage rate trends. This table summarizes the average rates offered by lenders across the US:

Average mortgage interest rates

Rates as of Nov. 5, 2021.

How to find personalized mortgage rates

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. Make sure to take into account your current financial situation and your goals when trying to find a mortgage. Specific interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a higher 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. The interest rate isn't the only factor that affects the cost of your home -- be sure to also consider other costs such as fees, closing costs, taxes and discount points. You should shop around with multiple lenders -- like credit unions and online lenders in addition to local and national banks -- in order to get a mortgage loan that's the right fit for you.

What is a good loan term?

When picking a mortgage, it's important to 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. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are set for the life of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (typically five, seven or 10 years), then the rate fluctuates annually based on the current interest rate in the market.

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. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable over time. If you don't have plans 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 is entirely dependent on your situation and goals, so be sure to take into consideration what's important to you when choosing a mortgage.