Compare today’s best mortgage rates



Loan type Purchase Refinancing
30 year fixed 3.15% 3.34%
FHA 30 year fixed 3.01% 3.23%
VA 30 year fixed 3.05% 3.32%
Jumbo 30 Years Fixed 3.39% 3.67%
20 year fixed 3.00% 3.25%
15 year fixed 2.38% 2.59%
Jumbo fixed for 15 years 2.98% 3.22%
10 year fixed 2.24% 2.51%
10/1 ARM 2.93% 3.19%
10/6 ARM 3.29% 4.35%
7/1 ARM 3.58% 3.81%
Jumbo 7/1 ARM 2.47% 2.76%
7/6 ARM 2.92% 3.59%
Jumbo 7/6 ARM 2.63% 2.90%
5/1 ARM 3.20% 3.75%
Jumbo 5/1 ARM 2.32% 2.47%
5/6 ARM 3.25% 4.31%
Jumbo 5/6 ARM 2.56% 2.84%
The national average is the lowest rates offered by over 200 of the country’s top lenders, with a loan-to-value (LTV) ratio of 80%, an applicant with an FICO credit rating of 700-760 and no mortgage points.

Frequently asked Questions

Written: Sara Lee Kane

What is a mortgage rate?

The mortgage rate is the amount of interest charged by the lender on the mortgage. These rates can be fixed – that is, the rate is set based on a benchmark rate – for the duration of the borrower’s mortgage, or they can vary depending on the terms of the mortgage and current rates. The rate is one of the key factors for borrowers when looking for home financing options as it will affect their monthly payments and how much they pay over the life of the loan.

How are mortgage rates set?

Mortgage rates are set based on several factors, including economic forces. For example, lenders look at base rate– the lowest rates offered by banks on loans – which usually follows the trends set by the federal funds rate of the Federal Reserve System. This is usually a few percentage points.

The yield on 10-year Treasury bonds can also reflect market trends. If bond yields go up, mortgage rates tend to go up, and vice versa. IN 10-Year Treasury Bond Yield usually the best standard for estimating mortgage rates. This is because many mortgages are refinanced or paid off after 10 years, even if a 30-year loan is the norm.

The factors that a borrower can control are their credit rating and the amount of the down payment. Because lenders determine rates based on the risk they can accept, borrowers who are less creditworthy or have a lower down payment may receive higher rates. In other words, the lower the risk, the lower the rate for the borrower.

Does the Federal Reserve Determine Mortgage Rates?

Although the Federal Reserve does not set mortgage rates, it indirectly affects them. The Federal Reserve helps manage the economy by keeping inflation in check and encouraging growth. This means that decisions made by the Federal Open Market Committee to raise or lower short-term interest rates could influence lenders to raise or lower their interest rates.

What is a good mortgage rate?

A good mortgage rate will depend on the borrower. Lenders will advertise the lowest rate offered, but yours will depend on factors such as your credit history, income, other debts, and your down payment. For example, a good mortgage rate for someone with a low credit rating is usually higher than for someone with a higher credit rating.

It is important to understand what will affect your individual rate and work on optimizing your finances so that you can get the most competitive rate based on your financial situation.

Do different types of mortgages have different rates?

Mortgage rates may vary depending on the type. For example, fixed rate mortgages are usually higher than adjustable rate mortgages. However, adjustable rate mortgages tend to have lower rates for a predetermined time and then fluctuate as they adjust to current market conditions.

Are interest rates and annual interest rates the same?

Interest rates and annual interest rate are not the same thing. The Annual Percentage Rate (APR) reflects the additional costs associated with your mortgage, including interest. The interest rate reflects the cost that homeowners pay to obtain a loan. These fees include fees such as clearance fees and discount points, so the annual interest rate is usually higher than the interest rate.

How do I get higher mortgage rates?

Eligibility for better mortgage rates can help you save tens of thousands of dollars over the life of your loan. Here are some ways to make sure you find the most competitive rate:

  • Raise your credit score: The borrower’s credit rating is a major factor in determining mortgage rates. The higher the credit rating, the more likely the borrower will receive a lower rate. It’s a good idea to check your credit score to see how you can improve it, whether it’s making timely payments or challenging mistakes on your credit report.
  • Increase your initial deposit: Most lenders offer lower mortgage rates for those who make a higher down payment. This will depend on the type of mortgage you are applying for, but sometimes if you save at least 20 percent, you can get more attractive rates.
  • Reduce your debt-to-income ratio: Debt to income ratio, also called DTI, is the amount of your monthly debt obligations and divided by your gross income. Lenders generally do not want a DTI of 43% or higher, as this could indicate that you may be having trouble meeting your monthly obligations as a borrower. The lower your DTI, the less risky you will appear to the lender, which will translate into a lower interest rate.

How Much Mortgage Can I Afford?

In general, homeowners can provide a mortgage that’s two to two and a half times their annual gross income. For example, if you make $ 80,000 a year, you can afford a mortgage of $ 160,000 to $ 200,000. Keep in mind that this is a general guideline and you need to consider additional factors when determining how much you can afford, such as your lifestyle.

First, your lender will determine what he thinks you can afford based on your income, debt, assets and liabilities. However, you need to determine how much you are willing to spend, your running costs – most experts recommend not spend more than 28 percent of your gross income at the cost of housing. Lenders will also keep an eye on your DTI, which means the higher your DTI, the less likely you will be able to afford a larger mortgage.

Be sure to include other expenses besides the mortgage, which include any applicable HOA fees, homeowner’s insurance, property taxes, and home maintenance costs. Using a mortgage calculator can be helpful in this situation to help you figure out how you can comfortably afford to pay your mortgage.

What are mortgage points?

Also known as discount points, it is a one-time payment or purchase by borrowers with an interest prepaid to lower the interest rate on a mortgage. Each discount point is worth one percent of your mortgage, or $ 1,000 for every $ 100,000, and reduces the rate by a quarter percent, or 0.25. For example, if the interest rate is 4 percent, buying one mortgage point will lower the rate to 3.75 percent.

How much do I need for a down payment?

The minimum you will need to deposit will depend on the type of mortgage. Many lenders require 5% to 20%, while others, such as those with government support, require at least 3.5%. A VA loan is an exception and does not require a down payment.

Generally, the higher your initial deposit, the lower your rate can be. Homeowners who shell out at least 20 percent will be able to save the most.


The above country averages were calculated based on the lowest rate offered by more than 200 of the country’s top lenders, assuming that credit-to-value ratio (LTV) 80% and an applicant with a FICO credit rating in the 700-760 range. The rates received are representative of what customers should expect to see when receiving actual bids from lenders based on their qualifications, which may differ from advertised teaser rates.

Our Best Government Rates card shows the lowest rate currently offered by a surveyed lender in that state, with the same parameters of 80% LTV and a credit rating of 700 to 760.

These mortgage rates are for informational purposes only. Prices are subject to change daily and are subject to change without prior notice. Loans above a certain threshold may have different loan terms, and the products used in our calculations may not be available in all states. The lending rates used do not include taxes or premiums. The individual lender conditions apply.


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