A few key mortgage rates increased Thursday. The average rates for both 30-year fixed and 5/1 adjustable rate mortgages both ticked up; the rate for 15-year fixed mortgages did not change, however. Although mortgage rates fluctuate, overall, all of these rates are at historic lows. If you’re shopping for a fixed-rate mortgage, this is an excellent time to finance a house. But before you buy, remember to consider your personal needs and financial situation — and always do your research, shop around and find the right lender and rate for you.
Find current mortgage rates for today
30-year fixed-rate mortgages
The 30-year fixed mortgage rate average is 3.10%, which is an increase of 1 basis point on seven days 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 2.37%, which is the same rate compared to a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. But a 15-year loan will usually be the better deal, if you can afford the monthly payments. You’ll typically 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 adjustable-rate mortgage has an average rate of 3.12%, a climb of 2 basis points compared to a week ago. For the first five years, you’ll typically get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. But you may end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an adjustable-rate mortgage may be a good option. 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:
Today’s mortgage interest rates
|Loan term||Today’s Rate||Last week||Change|
|30-year mortgage rate||3.10%||3.09%||+0.01|
|15-year fixed rate||2.37%||2.37%||N/C|
|30-year jumbo mortgage rate||3.15%||3.14%||+0.01|
|30-year mortgage refinance rate||3.16%||3.13%||+0.03|
Rates accurate as of June 3, 2021.
How to find personalized mortgage rates
To find a personalized mortgage rate, speak to your local mortgage broker or use an online mortgage service. When shopping around for home mortgage rates, consider your goals and current finances. 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. Having a good 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. 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’s best for you.
How does the loan term impact my mortgage?
One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The mortgage 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- and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are the same for the duration 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 adjusts annually based on the market interest rate.
When deciding between a fixed- and adjustable-rate mortgage, you should take into consideration the length of time you plan to live in your home. For people who plan on living long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. However, you might get a better deal with an adjustable-rate mortgage if you only intend to keep your house for a couple years.
There is no best loan term as a general rule; it all depends on your goals and your current financial situation. Make sure to do your research and think about your own priorities when choosing a mortgage.