Current mortgage rate for March 25, 2021: Rates tick down – CNET

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A few key mortgage rates slumped today. The average interest rates for both 15-year fixed and 30-year fixed mortgages took a tumble. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also saw rates trending downward. Although mortgage rates fluctuate , they are quite low right now. For those looking to get a fixed rate, now is an optimal time to buy a home. Before you buy a home, remember to take into account your personal needs and financial situation, and shop around for different lenders to find the best one for you.

Find current mortgage rates for today

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.23%, which is a decline of 2 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) 30-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will usually have a greater interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. 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 2.47%, which is a decrease of 1 basis point from seven days ago. You’ll definitely have a higher 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 adjustable-rate mortgage has an average rate of 3.25%, a downtick of 3 basis points from seven days ago. 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 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 adjustable-rate mortgage may 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 could be on the hook for a much higher interest rate if the market rates change.

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:

Average mortgage interest rates
Product Rate Last week Change
30-year fixed 3.23% 3.25% -0.02
15-year fixed 2.47% 2.48% -0.01
30-year jumbo mortgage rate 3.14% 3.12% +0.02
30-year mortgage refinance rate 3.31% 3.34% -0.03

Rates as of March 25, 2021.

How to shop for the best mortgage rate

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. Make sure to take into accountyour current financial situation and your goals when looking for a mortgage. Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income 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 additional factors such as fees, closing costs, taxes and discount points. You should comparison shop 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.

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 mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are fixed for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only set for a certain amount of time (usually five, seven or 10 years). After that, the rate adjusts annually based on the market rate. When choosing between a fixed-rate and adjustable-rate mortgage, you should think about the length of time you plan to stay in your home. If you plan on living long-term in their new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages might have lower interest rates upfront, fixed-rate mortgages are more stable over time. However you may 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 be sure to take into consideration what’s important to you when choosing a mortgage.

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