30-year mortgage ratesThe average rate for a 30-year fixed-rate mortgage is 3.04 percent, falling 5 basis points over the past seven days. A month ago, the average interest rate on a 30-year loan was higher, at 3.06 percent.At today’s average rate, you’ll pay principal and interest of $423.76 for every $100k you borrow. That’s $2.71 lower than what it would have been last week. Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.30-year refinance ratesThe average rate to refinance a 30-year fixed-rate mortgage is 3.14 percent, an increase of 8 basis points over the past seven days. Last month on the 7th, the average rate on a 30-year mortgage was 3.10 percent.At the current average rate, you’ll pay P&I of $429.19 for every $100,000 you borrow. Compared to last week, that’s $4.34 higher. Compared to a month ago, that’s $2.17 higher.Pros and cons of a 30-year fixed mortgageThe 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:
Lower monthly payment. Compared to a shorter-term mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly payments spread over time.
Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
Buying power. With lower payments, you can qualify for a larger loan amount and a more expensive home.
Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year mortgage with a lower monthly cost can allow you to save more for retirement.
As with any financial product, the 30-year fixed-rate mortgage has some downsides:
More total interest paid. Stretching out repayment to a 30-year term means you pay more overall in interest than you would with a shorter-term loan.
Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
Buying a more expensive house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.
Mortgage lock recommendations
A rate lock guarantees a lender will honor a specified interest rate at a specific cost for a set period. The benefit of a mortgage rate lock is that it protects you from market fluctuations. It also puts pressure on borrowers to make sure they close on homes before the rate-lock period expires. For example, if your lender locks in your rate at 3.75 percent for 45 days and rates jump up to 4 percent within that period, you’ll still get your loan at the lesser rate.
If they choose not to lock in your rate, you’ll have a “floating” rate. That’s not a bad strategy when interest rates are generally falling, but it could be costly in a rising rate environment. A rate lock is a must for risk-averse people who are seeking a mortgage. It’s a good idea to ask for a 45-day lock at a minimum; 60 days is even better.
Where rates are headed
Once a week, our editorial team asks a group of mortgage experts where they think mortgage rates will go over the next week. See Bankrate’s Rate Trends Page for weekly predictions.
In order to provide the latest rates, mortgage lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see our latest marketplace average rates and an up to date analysis on current interest rates..
Shopping for a mortgage lender? See Bankrate’s lender reviews here.
Read about today’s rates for a variety of loan terms:
Mortgage rates today
Refinance interest rates today
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Accelin Loans Mortgage Review
Mr. Cooper Mortgage Review
Philadelphia Mortgage Advisors Mortgage Review
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Check rates for specific loan types
Mortgage Rates for Purchase
Mortgage Rates for Refinancing
The index above links out to loan-specific content to help you learn more about rates by product type.
30 Year Fixed Mortgage Rates
Current 30 Year Refinance Rates
20-Year Mortgage Interest Rates
20-Year Refi Rates
15-Year Mortgage Rates
15-Year Mortgage Refinance Rates
10-Year Mortgage Interest Rates
Current 10-Year Refinance Rates
FHA Loan Interest Rates
FHA Refinance Interest Rates
VA Mortgage Rates
VA Mortgage Refinance Rates
ARM Interest Rates
ARM Refinance Interest Rates
Jumbo Loan Rates
Jumbo Loan Refinance Rates
The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s on-site rate averages”.