Today’s mortgage rates for September 15, 2021: rates have gone down
A number of major mortgage rates have fallen today. Both 15-year and 30-year fixed mortgage rates have come down. For variable rates, the 5/1 variable rate mortgage has also gone down. Mortgage interest rates are never set in stone, but interest rates are at their lowest in years. If you are thinking of financing a home, maybe now is the time to get a fixed rate. Before buying a home, don’t forget to consider your personal needs and financial situation, and shop around with different lenders to find the one that’s right for you.
Find current mortgage rates for today
30-year fixed rate mortgages
The 30-year fixed mortgage rate average is 3.02%, down 1 basis point from a week ago. (One basis point equals 0.01%.) Thirty-year fixed rate mortgages are the most commonly used loan term. A 30 year fixed rate mortgage will often have a higher interest rate than a 15 year fixed rate mortgage, but also a lower monthly payment. 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 2.31%, down 2 basis points from a week ago. 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. However, if you can afford the monthly payments, a 15-year loan has several advantages. You will usually get a lower interest rate and pay less interest overall because you pay off your mortgage much faster.
5/1 adjustable rate mortgages
A 5/1 adjustable rate mortgage has an average rate of 3.03%, down 2 basis points from seven days ago. With an adjustable rate mortgage, you will usually get a lower interest rate than a 30-year fixed mortgage for the first five years. However, since the rate changes with the market rate, you could end up paying more after this period, as described in your loan terms. If you plan to sell or refinance your home before rates change, an ARM might be right for you. Otherwise, changes in the market could dramatically increase your interest rate.
Mortgage rate trends
We use rates 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:
Mortgage interest rates today
|term of the loan||Daily rate||Last week||Switch|
|30 year mortgage rate||3.02%||3.03%||-0.01|
|15-year fixed rate||2.31%||2.33%||-0.02|
|Giant 30-year mortgage rate||2.79%||2.80%||-0.01|
|30-year mortgage refinancing rate||2.99%||3.00%||-0.01|
Prices exact as of September 15, 2021.
How to shop for the best mortgage rate
When you’re ready to apply for a loan, you can connect with a local mortgage broker or search online. Make sure to think about your current finances and your goals when trying to find a mortgage. A range of factors, including your down payment, credit score, loan-to-value ratio, and debt-to-income ratio, will all affect your mortgage rate. Having a good credit score, a higher down payment, a low DTI, a low LTV, or any combination of these factors can help you get a lower interest rate. Besides the interest rate, other costs including closing costs, fees, points of call, and taxes may also be factored into the cost of your home. Be sure to shop around with multiple lenders – like credit unions and online lenders in addition to local and state banks – to get a mortgage that’s right for you.
How does the term of the loan affect my mortgage?
An important thing to consider when choosing a mortgage loan is the length of the loan or the payment schedule. The most common mortgages are for 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 set for the term of the loan. For variable rate mortgages, interest rates are set for a number of years (typically five, seven, or 10 years) and then the rate adjusts annually based on the market rate.
When deciding between a fixed rate mortgage and an adjustable rate mortgage, you need to think about how long you plan to stay in your home. Fixed rate mortgages may be more suitable for those who plan to live in a house for a period of time. Fixed rate mortgages offer greater stability over time compared to variable rate mortgages, but variable rate mortgages can sometimes offer lower interest rates initially. However, you can get a better deal with an adjustable rate mortgage if you only intend to keep your home for a few years. As a rule, there is no better loan term; it all depends on your goals and your current financial situation. Make sure you do your research and think about what is most important to you when choosing a mortgage.