Mortgage interest rates for April 30, 2021: Rates move upward – CNET

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A few major mortgage rates saw an increase today. The average interest rates for both 15-year fixed and 30-year fixed mortgages both trended upward. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also cruised higher. Mortgage interest rates are never set in stone, but interest rates are historically low. Because of this, right now is a good time for prospective home buyers to lock in a fixed rate. But as always, make sure to first take into account your personal goals and circumstances before purchasing a home, and compare offers to find a lender who can best meet your needs.

Find current mortgage rates for today

30-year fixed-rate mortgages

The average interest rate for a standard 30-year fixed mortgage is 3.11%, which is an increase of 4 basis points as seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed mortgage will usually 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 house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.39%, which is an increase of 4 basis points compared to a week ago. You’ll definitely have a bigger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. But a 15-year loan will usually be the better deal, as long as you’re able to afford the monthly payments. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 3.13%, an increase of 6 basis points compared to a week ago. With an ARM mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, shifts in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage might make sense for you. But if that’s not the case, you could be on the hook for a much higher interest rate if the market rates change.

Mortgage rate trends

We use information collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders nationwide:

Average mortgage interest rates

Product Rate Last week Change
30-year fixed 3.11% 3.07% +0.04
15-year fixed 2.39% 2.35% +0.04
30-year jumbo mortgage rate 3.26% 3.24% +0.02
30-year mortgage refinance rate 3.17% 3.14% +0.03

Rates as of April 30, 2021.

How to find the best mortgage rates

When you are ready to apply for a loan, you can connect with a local mortgage broker or search online. Make sure to think aboutyour current financial situation and your goals when looking for a mortgage. Things that affect what the interest rate you might get on your mortgage include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a good credit score, a higher down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. Beyond the mortgage interest rate, additional costs including closing costs, fees, discount points and taxes might also impact the cost of your house. You should comparison shop with multiple lenders — for example, credit unions and online lenders in addition to local and national banks — in order to get a mortgage loan that’s best for you.

What is a good loan term?

One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The most common loan terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are the same for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (commonly five, seven or 10 years). After that, the rate fluctuates annually based on the market interest rate. 

When choosing between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to stay in your home. For those who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages may offer lower interest rates upfront. However you might get a better deal with an adjustable-rate mortgage if you’re only planning to keep your home for a few years. The “best” loan term all all depends on your specific situation and goals, so be sure to take into consideration what’s important to you when choosing a mortgage.

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