Mortgage interest rates as of September 24, 2021: Rate hike


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A handful of major mortgage rates have gone up today. Both 15-year and 30-year fixed mortgage rates have climbed. The average rate of the most common type of variable rate mortgage, the 5/1 variable rate mortgage, has also increased. Although mortgage rates fluctuate, they are lower than they have been in years. For those looking to get a fixed rate, now is the time to finance a home. But as always, be sure to consider your personal goals and circumstances first before buying a home, and shop around to find a lender who can best meet your needs.

30-year fixed rate mortgages

The 30-year fixed mortgage rate average is 3.03%, up 3 basis points from seven days ago. (One basis point equals 0.01%.) The most common 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 mortgage, but usually a higher interest rate. You won’t be able to pay off your home that quickly, and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to keep your monthly payment down.

15-year fixed rate mortgages

The average rate for a 15-year fixed-rate mortgage is 2.29%, which is an increase of 1 basis point from the same period last week. You will certainly 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 best deal, if you can afford the monthly payments. This usually comes down to being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest over the long term.

5/1 adjustable rate mortgages

A 5/1 adjustable rate mortgage has an average rate of 3.04%, up 3 basis points from seven days ago. With an adjustable rate mortgage, you will typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, market fluctuations may cause your interest rate to increase after this period, as stated in your loan terms. For this reason, an ARM can be a good option if you plan to sell or refinance your home before the rate changes. Otherwise, changes in the market can dramatically increase your interest rate.

Mortgage rate trends

We use data 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 nationwide:

Current average mortgage interest rates

Type of loan Interest rate A week ago Switch
30-year fixed rate 3.03% 3.00% +0.03
15-year fixed rate 2.29% 2.28% +0.01
Giant 30-year mortgage rate 2.79% 2.79% NC
30-year mortgage refinancing rate 3.01% 2.97% +0.04

Updated September 24, 2021.

How to shop for the best mortgage rate

When you’re ready to apply for a loan, you can contact a local mortgage broker or search online. In order to find the best mortgage loan, you will need to consider your goals and your overall financial situation. Things that affect the mortgage interest rate you might get include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Having a good credit score, a larger down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. Beyond the mortgage rate, factors such as closing costs, fees, points of call, and taxes can also affect the cost of your home. You should talk to several different lenders – including local and state banks, credit unions, and online lenders – and a comparator to find the best mortgage for you.

How does the term of the loan affect my mortgage?

When choosing a mortgage, you should consider the length of the loan or the repayment schedule. The most commonly offered mortgage terms 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. The interest rates for a fixed rate mortgage are set for the term of the loan. Unlike a fixed rate mortgage, the interest rates for a variable rate mortgage are only the same for a certain period of time (usually five, seven, or 10 years). After that, the rate fluctuates every year based on the current interest rate in the market.

One thing to consider when deciding between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to live in your home. Fixed rate mortgages might be better suited for people who plan to live in a house for a period of time. While variable rate mortgages may have lower interest rates initially, fixed rate mortgages are more stable over time. However, you can get a better deal with an adjustable rate mortgage if you plan to only keep your home for a few years. The best loan term depends on your personal circumstances and goals, so be sure to think about what’s important to you when choosing a mortgage.

Previous Current 30-year mortgage rates rise to 3% for the first time in 69 days | September 24, 2021
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