A handful of principal mortgage rates crept upward today. Fifteen-year fixed and 30-year fixed mortgage rates both climbed higher. At the same time, average rates for 5/1 adjustable-rate mortgages also ticked up. Mortgage interest rates are never set in stone, but interest rates are the lowest they’ve been in years. For those looking to lock in a fixed rate, now is an ideal time to buy a house. But as always, make sure to first think about your personal goals and circumstances before purchasing a home, and talk to multiple lenders to find a lender who can best meet your needs.
Check out mortgage rates that meet your distinct needs
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 3.08%, which is an increase of 7 basis points compared to 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 2.38%, which is an increase of 7 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. However, if you’re able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll usually 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%, a rise of 9 basis points from the same time last week. For the first five years, you’ll usually get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But since the rate changes with the market rate, you may end up paying more after that time, as described in the terms of your loan. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage may be a good option. 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 rates 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||3.08%||3.01%||+0.07|
|15-year fixed rate||2.38%||2.31%||+0.07|
|30-year jumbo mortgage rate||2.80%||2.80%||N/C|
|30-year mortgage refinance rate||3.07%||2.99%||+0.08|
Rates accurate as of Sept. 1, 2021.
How to find personalized mortgage rates
You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. In order to find the best home mortgage, you’ll need to consider your goals and overall financial situation. Specific interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a good credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate.
Beyond the mortgage rate, other costs including closing costs, fees, discount points and taxes might also affect the cost of your home. Make 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 mortgage that’s right for you.
How does the loan term impact my mortgage?
One important factor to 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. Mortgages are further divided into fixed- 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 set for a certain number of years (commonly five, seven or 10 years), then the rate adjusts annually based on the current interest rate in the market.
When deciding between a fixed- and an adjustable-rate mortgage, you should consider the length of time you plan to live in your home. If you plan on living long-term in a new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages can sometimes offer lower interest rates upfront, fixed-rate mortgages are more stable over time. However, you could get a better deal with an adjustable-rate mortgage if you’re only planning to keep your house for a few years. The best loan term depends on your specific situation and goals, so make sure to take into consideration what’s important to you when choosing a mortgage.