At this time’s mortgage charges – CNET
Jim Lane / Getty
Some closely monitored mortgage rates fell today. The interest rates on 15-year and 30-year fixed mortgages fell. The average rate on 5/1 variable rate mortgages also fell. Although mortgage rates are constantly changing, they are lower than they have been in years. If you are planning on financing a home, now may be a good time to set a fixed rate. However, as always, before buying a home, think about your personal goals and circumstances first and find a lender who can best meet your needs.
30-year fixed-rate mortgages
The 30-year fixed rate mortgage average is 3.00%, a 1 basis point decrease from seven days. (One basis point is 0.01%.) The most common repayment term is a 30-year fixed-rate mortgage. A 30-year fixed-rate mortgage usually has a higher interest rate than a 15-year fixed-rate mortgage – but it also has a lower monthly payment. Although you’ll pay more interest over time – you pay off your loan over a longer period of time – if you’re looking for a lower monthly payment, a 30-year fixed-rate mortgage can be a good option.
15-year fixed-rate mortgages
The average interest rate on a 15-year fixed-rate mortgage is 2.28%, a 3 basis point decrease from the previous week. With a 15-year fixed-rate mortgage, you definitely have a higher monthly rate than a 30-year fixed-rate mortgage, even if the interest rate and the loan amount are the same. But a 15 year loan is usually a better deal if you can afford the monthly payments. This usually includes the option of getting a lower interest rate, paying off your mortgage earlier, and paying less total interest in the long run.
5/1 adjustable rate mortgages
A 5/1 ARM has an average rate of 3.01%, a 1 basis point decrease from a week ago. For the first five years, you will typically get a lower interest rate on a 5/1 ARM than you would on a 30-year fixed-rate mortgage. However, because the interest rate changes with the market rate, you may be able to pay more after that time, as detailed in the terms of your loan. If you are planning to sell or refinance your home before the interest rate change, an adjustable rate mortgage may make sense for you. Otherwise, your interest rate could be significantly higher due to market shifts once the interest rate adjusts.
Mortgage rate trends
We use information collected by Bankrate, owned by the same parent company as CNET, to keep track of daily mortgage rate trends. This table summarizes the average rates offered by lenders across the country:
Current average mortgage interest rate
|Credit type||interest rate||A week ago||Change|
|30-year fixed rate||3.00%||3.01%||-0.01|
|15 years fixed rate||2.28%||2.31%||-0.03|
|30 year jumbo mortgage rate||2.79%||2.78%||+0.01|
|30 year mortgage refinancing rate||2.97%||2.99%||-0.02|
Updated September 20, 2021.
How to Find the Best Mortgage Rates
When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. When researching home mortgage rates, consider your goals and current finances. A number of factors – including your down payment, creditworthiness, loan-to-value ratio, and debt-to-income ratio – all affect the interest rate on your mortgage. In general, you want a higher credit score, larger down payment, lower DTI, and lower LTV in order to get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home – consider other factors too, such as fees, closing costs, taxes, and discount points. Be sure to speak to multiple lenders – such as local and national banks, credit unions, and online lenders – and compare them with a comparison shop to find the best loan for you.
What is a good repayment term?
When choosing a mortgage, it is important to consider the repayment term or payment schedule. The most common loan terms offered are 15 year and 30 year, although you can also find 10, 20 and 40 year mortgages. Another important difference is between fixed rate and adjustable rate mortgages. With fixed-rate mortgages, the interest rates are the same throughout the life of the loan. Unlike a fixed-rate mortgage, the interest rates on an adjustable-rate mortgage are only stable for a certain period of time (typically five, seven or 10 years). After that, the interest rate changes annually based on the current interest rate in the market.
When deciding between a fixed-rate mortgage and a fixed-rate mortgage, consider how long you want to live in your home. If you’re looking to stay in a new home for the long term, fixed-rate mortgages may be a better option. Fixed rate mortgages offer more stability over time compared to adjustable rate mortgages, but adjustable rate mortgages can sometimes offer lower interest rates upfront. However, you can get a better deal on an adjustable rate mortgage if you only want to keep your home for a few years. The best repayment term depends entirely on the situation and goals of the individual. So, when choosing a mortgage, keep in mind what is important to you.
Bring your home up to date with the latest information on automation, security, utilities, networking, and more.