Mortgage interest rates as of November 2, 2021: rates continue to fall

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Several major mortgage rates have come down today: Average rates for 15- and 30-year fixed mortgages have declined slightly, while rates for 5/1 variable-rate mortgages have also fallen. Although mortgage rates are never frozen, they have reached historic lows over the past year. For this reason, now is the perfect time for potential buyers to get a low fixed rate. Before you embark on homeownership, be sure to review your personal finances and goals, and always shop around with different lenders to find the mortgage that best suits your needs.

30-year fixed rate mortgages

The 30-year fixed mortgage rate average is 3.14%, down 5 basis points from a week ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most common loan term. A 30 year fixed rate mortgage will usually have a lower monthly payment than a 15 year mortgage, but often 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 2.44%, which is a decrease of 2 basis points from the same period last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and the same interest rate will have a higher monthly payment. But a 15 year loan will usually be the best deal, if you are able to afford the monthly payments. These typically include the ability to get a lower interest rate, pay off your mortgage sooner, and pay less total interest over the long term.

5/1 adjustable rate mortgages

A 5/1 adjustable rate mortgage has an average rate of 3.13%, down 5 basis points from a week ago. For the first five years, you will typically get a lower interest rate with a 5/1 variable rate mortgage compared to a 30 year fixed mortgage. But changes in the market can cause your interest rate to increase after this period, as stated in your loan terms. If you are considering selling or refinancing your home before rates change, an adjustable rate mortgage may be right for you. But if it doesn’t, you might have to pay a much higher interest rate if market rates change.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track rate changes over time. This table summarizes the average rates offered by lenders nationwide:

Average mortgage interest rates

Product Rate Last week Switch
30 years fixed 3.14% 3.19% -0.05
15 years fixed 2.44% 2.46% -0.02
Giant 30-year mortgage rate 2.76% 2.80% -0.04
30-year mortgage refinancing rate 3.13% 3.16% -0.03

Prices as of November 2, 2021.

How to find personalized mortgage rates

You can get a personalized mortgage rate by contacting your local mortgage broker or by using an online calculator. Be sure to consider your current financial situation and your goals when looking for a mortgage. Things that affect the interest rate you might get on your mortgage include: your credit rating, down payment, loan-to-value ratio, and debt-to-income ratio. Typically, you want a higher credit score, higher down payment, lower DTI, and lower LTV to get a lower interest rate. The interest rate is not the only factor that affects the cost of your home. Also, be sure to consider other costs such as fees, closing costs, taxes, and points of call. Be sure to talk to a variety of lenders – including local and state banks, credit unions, and online lenders – and a comparator to find the best mortgage for you.

What is a good loan term?

When choosing a mortgage, remember to consider the length of the loan or the payment schedule. The most common loan terms are 15 years and 30 years, although there are also 10, 20 and 40 year mortgages. Another important distinction is between fixed rate and variable rate mortgages. For fixed rate mortgages, the interest rates are fixed 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 adjusts annually based on the market rate.

An important factor to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to stay in your home. For people who plan to stay in a new home for the long term, fixed rate mortgages may be the best option. Fixed rate mortgages offer greater stability over time compared to variable rate mortgages, but variable rate mortgages may offer lower interest rates initially. If you don’t plan on keeping your new home for more than three to ten years, an adjustable rate mortgage may give you a better deal. Generally, there is no better loan term; it all depends on your goals and your current financial situation. Make sure you do your research and know what is most important to you when choosing a mortgage.

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