Multiple closely watched mortgage rates slid lower today. The average rates on 30-year fixed and 15-year fixed mortgages both slid down. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages inched up.
|Loan type||Interest rate||A week ago||Change|
|30-year fixed rate||2.88%||2.90%||-0.02|
|15-year fixed rate||2.36%||2.39%||-0.03|
|30-year fixed jumbo rate||2.92%||2.95%||-0.03|
|30-year fixed refinance rate||2.93%||2.96%||-0.03|
Rates last updated on January 21, 2021. These rates are averages based on the assumptions shown here. Actual rates on-site may vary.
Data source: Bankrate overnight averages data
Mortgage rates change daily, but they remain much lower overall than they were before the Great Recession. If you’re in the market for a mortgage, it could make sense to lock if you see a rate you like. Just don’t do so without shopping around first.
Compare mortgage rates in your area now.
30-year fixed-rate mortgages
The average rate for a 30-year fixed mortgage is 2.88 percent, a decrease of 2 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was higher, at 2.92 percent.
At the current average rate, you’ll pay principal and interest of $415.16 for every $100,000 you borrow. That’s a decline of $1.07 from last week.
You can use Bankrate’s mortgage payment calculator to estimate your monthly payments and see the effect of adding extra payments. It will also help you computehow much interest you’ll pay over the life of the loan.
The average 15-year fixed-mortgage rate is 2.36 percent, down 3 basis points since the same time last week.
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Monthly payments on a 15-year fixed mortgage at that rate will cost around $660 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much faster.
5/1 Adjustable Rate Mortgage Rates
The average rate on a 5/1 adjustable rate mortgageis 2.98 percent, up 8 basis points since the same time last week.
These types of loans are best for people who expect to refinance or sell before the first or second adjustment. Rates could be considerably higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 2.98 percent would cost about $421 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Jumbo mortgage interest rates
Today’s average rate for jumbo mortgages is 2.92 percent, a decrease of 3 basis points since the same time last week. A month ago, the average rate on a jumbo mortgage was above that, at 2.94 percent.
At today’s average rate, you’ll pay $417.30 per month in principal and interest for every $100k you borrow. That’s lower by $1.61 than it would have been last week.
To follow how rates change day-to-day, see Bankrate’s daily rates news hub.
Where to get the best rates
Interest rates can differ widely based on overarching market forces, the size of the loan, your location, your financial situation and how motivated mortgage lenders are to get your business. Remember that the rates we quote are averages–some people will be quoted higher or lower or that exact rate, and the rate may change daily even at the same lender.
It’s important when you’re searching for a mortgage to shop around and compare all the terms of your offers, not just the interest rate you’re being quoted. Your best rate and terms may be from an online lender, the bank down the street or perhaps through a mortgage broker. You won’t know unless you shop multiple lenders through multiple channels.
Bankrate is a great place to start, because you can take advantage of our mortgage rate comparison tool and remain up to date on current rates. If you’re not happy with the results you see between these pages, you should check with the institution where you do your banking, and other small lenders like credit unions or local banks.
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Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.