Mortgage and refinance have decreased since last Sunday. Most rates have gone up since this time last month, but rates are still at historical lows overall.
If you're ready to buy a home or refinance, you may want to go with a fixed-rate mortgage rather than an adjustable rate.
Fixed rates are starting significantly lower than ARM rates these days. And because rates are at all-time lows, your rate would probably increase later if you had an ARM. By locking in a great rate now, you can guarantee you'll pay a low rate until you either pay off your mortgage or refinance.
Mortgage rates on Sunday, April 11, 2021| Mortgage type | Average rate today |
| 15-year fixed | 2.57% |
| 30-year fixed | 3.51% |
| 7/1 ARM | 4.30% |
| 10/1 ARM | 4.45% |
Rates from Money.com
Learn more and get offers from multiple lenders.»You can probably get a 15-year fixed rate well under 3%, and a 30-year fixed rate under 4%. Adjustable rates are much higher than fixed rates right now.
We're providing the national average rates for conventional mortgages, which might be what you think of "normal mortgages." You could get a lower rate on a government-backed mortgage through the FHA, VA, or USDA.
Refinance rates on Sunday, April 11, 2021| Mortgage type | Average rate today |
| 15-year fixed | 2.86% |
| 30-year fixed | 3.84% |
| 7/1 ARM | 4.56% |
| 10/1 ARM | 4.87% |
Rates from Money.com
Click here to compare offers from refinancing lenders »Refinance rates are higher than mortgage rates, but they're still low overall.
How to get the best mortgage rateRates are at all-time lows and have gone down since last Sunday. You might want to secure a low mortgage rate while possible.
However, you shouldn't be too worried about your rate increasing anytime soon, as rates will probably remain low well into 2021. There's no need to rush to get a mortgage or refinance. You have the chance to change your financial situation and get a better rate.
- Boost your credit score. You can start by making timely payments, paying off your debts, or allowing your credit to age. You'll obtain a more favorable interest rate with a higher score, and many lenders will reduce your rate with a score of at least 700.
- Put down more for a down payment. You might be able to shell out as little as 3% if you're going after a conventional mortgage, but the smallest amount will depend on which type of mortgage you want. You'll likely get an improved rate with a higher down payment.
- Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. You can get a better rate by lowering your ratio. To improve your ratio, pay down debts or search for opportunities to boost your income.
- Pick a government-backed mortgage. If you're qualified, you might consider a USDA loan (aimed at low-to-moderate-income borrowers buying in a rural area), a VA loan (designed for military members and veterans), or an FHA loan (not designated for any particular group). Government-backed mortgages frequently come with better interest rates than conventional mortgages. Additionally, down payments aren't required for USDA or VA loans.
However, if you know you'll want to buy soon, you may want to start the process of applying for preapproval and locking in a rate. According to a study by Redfin, over half of homes are selling in two weeks or less right now. So when you're ready to buy, you'll want to move fast.
Mortgage and refinance rate trendsMortgage rate trends| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 15-year fixed | 2.57% | 2.65% | 2.56% |
| 30-year fixed | 3.51% | 3.63% | 3.46% |
| 7/1 ARM | 4.30% | 4.43% | 4.55% |
| 10/1 ARM | 4.45% | 4.73% | 4.32% |
Mortgage rates have decreased since last Sunday, but almost all rates have increased since this time last month.
Refinance rate trends| Mortgage type | Average rate today | Average rate last week | Average rate last month |
| 15-year fixed | 2.86% | 2.97% | 2.87% |
| 30-year fixed | 3.84% | 3.92% | 3.78% |
| 7/1 ARM | 4.56% | 4.82% | 4.84% |
| 10/1 ARM | 4.87% | 5.09% | 4.8% |
All refinance rates have dropped since last Sunday. With the exception of 7/1 ARM rates, refinance rates have gone up since this time last month.
How do 15-year fixed rates work?If you take out a 15-year fixed mortgage, you'll pay the same interest rate over 15 years.
You'll fork over more per month with a 15-year fixed mortgage than a 30-year fixed mortgage because you're paying off the equivalent loan principal in half the time.
On the bright side, a 15-year term will cost less than a longer term. You'll get a lower interest rate and you'll pay off your mortgage in fewer years.
How do 30-year fixed rates work?If you take out a 30-year fixed mortgage, it will take you three decades to pay down your mortgage, and you'll pay the same interest rate the whole time.
You'll make smaller monthly payments with a 30-year term than a shorter term because you are spreading your payments out over more years.
However, it will cost you more total interest with a 30-year fixed mortgage than a 15-year fixed mortgage because you're paying a higher interest rate for an extended period.
How do adjustable rates work?An adjustable-rate mortgage, commonly referred to as an ARM, holds your rate constant for the first several years. then changes it recurringly. A 7/1 ARM locks in your rate for seven years before altering your rate annually.
You can secure all-time low ARM rates, but a fixed-rate mortgage might still offer the best deal. With a fixed-rate mortgage, you can lock in a low rate for 15 or 30 years without the worry that your rate could go up in the future with an ARM.
If you're considering getting an ARM, discuss with your lender what your individual rates would look like depending on if you chose a fixed-rate versus an adjustable-rate mortgage.
Mortgage and refinance rates by stateCheck the latest rates in your state at the links below.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming
Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.
Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.
Related Content Module: More Mortgage CoverageSee Also:
