Current mortgage rate as of June 24, 2021: rates are falling

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Rates on a number of major mortgage loans have dropped today. While 15-year fixed rates on mortgages rose, interest rates on 30-year fixed rates declined. For variable rates, the size of the 5/1 adjustable rate mortgage has decreased. Mortgage interest rates are never set in stone, but interest rates have historically been low. Because of this, now is a great time for potential home buyers to get a flat rate. Before buying a home, be sure to think about your personal needs and financial situation, and look from different lenders for the right one for you.

Find out current mortgage rates for today

30 year fixed rate mortgage

For a 30-year fixed rate mortgage, the average rate you’ll pay is 3.13%, which is 3 basis points lower than a week ago. (The base point is equivalent to 0.01%.) Fixed rate mortgage loans for 30 years are the most common loan term. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year, but often has a higher interest rate. Although you will pay more interest over time – you pay off the loan over a longer period – if you are looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

Mortgage with a fixed interest rate for 15 years

The average 15-year fixed-term mortgage rate is 2.43%, up 1 basis point from a week ago. Compared to a fixed mortgage for 30 years, a fixed mortgage for 15 years with the same loan amount and interest rate will have a higher monthly payment. But a 15 year loan will usually be a better deal if you can afford the monthly payments. These usually include the ability to get a lower interest rate, pay off your mortgage faster, and pay less interest in the long run.

5/1 Adjustable Rate Mortgage

ARM 5/1 has an average of 3.14%, down 5 basis points from seven days ago. For the first five years, you usually get a lower interest rate with 5/1 ARM compared to a 30 year fixed mortgage. But you may end up paying more after that time, depending on the terms of your loan and how the rate adjusts to the market rate. If you are planning to sell or refinance your home prior to the rate change, ARM might make sense to you. Otherwise, changes in the market can significantly increase your interest rate.

Dynamics of mortgage rates

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

Current average mortgage interest rates
Loan type Interest rate A week ago Change
30 year flat rate 3.13% 3.16% -0.03
15 year flat rate 2.43% 2.42% +0.01
30 year giant mortgage rate 3.33% 3.20% +0.13
30 year mortgage refinancing rate 3.21% 3.22% -0.01

Updated on June 24, 2021.

How to find the best mortgage rates

You can get a customized mortgage rate by contacting your local mortgage broker or by using an online calculator. Be sure to take your current financial situation and your goals into account when looking for a mortgage. Specific mortgage rates will vary depending on factors including credit rating, down payment, debt-to-income ratio, and loan-to-value ratio. Typically, you need a good credit rating, a larger down payment, a lower DTI, and a lower LTV in order to get a lower interest rate. In addition to the mortgage rate, factors including closing costs, fees, discount points, and taxes can also affect the value of your home. You should compare shops with multiple lenders – for example, credit unions and online lenders, as well as local and national banks – to get the mortgage that works best for you.

What is a good loan term?

When choosing a mortgage, it is important to keep in mind the loan term or payment schedule. The most commonly offered mortgages are 15 and 30 years, although you can also find mortgages for 10, 20 and 40 years. Another important difference is between fixed and adjustable rate mortgages. For fixed rate mortgages, the interest rates are the same for the entire life of the loan. For adjustable rate mortgages, interest rates are fixed for a certain number of years (usually five, seven or 10 years), then the rate changes annually depending on the current interest rate in the market.

One thing to keep in mind when choosing a fixed or adjustable rate mortgage is how long you plan to stay in your home. A fixed rate mortgage may be more suitable for people who plan to stay in the home for a while. While adjustable rate mortgages can sometimes offer lower interest rates up front, fixed rate mortgages are more stable in the long run. However, you can get a better deal with an adjustable rate mortgage if you only plan to keep your home for a couple of years. The best loan term – it all depends on the situation and goals of the person, so be sure to consider what is important to you when choosing a mortgage.

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