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Some closely monitored mortgage rates fell today. Both 15-year and 30-year fixed mortgage rates fell. At the same time, the average interest rate for 5/1 variable rate mortgages has also been reduced. Mortgage rates are never set in stone, but rates are the lowest in years. Because of this, now is an ideal time for potential homebuyers to secure a fixed price. But, as always, before buying a home, you should first consider your personal goals and circumstances and shop around to find a lender who best suits your needs.

Find the current mortgage rates for today

30-year fixed-rate mortgages

The 30-year fixed rate mortgage average is 2.98%, a 3 basis point decrease from the previous week. (One basis point is 0.01%.) The most common repayment term is a 30-year fixed-rate mortgage. A 30-year fixed-rate mortgage usually has a lower monthly payment than a 15-year – but usually a higher interest rate. Although you'll pay more interest over time – you pay off your loan over a longer period of time – if you're looking for a lower monthly payment, a 30-year fixed-rate mortgage can be a good option.

15-year fixed-rate mortgages

The average interest rate on a 15-year fixed-rate mortgage is 2.28%, a 3 basis point decrease from the same point in time last week. Compared to a 30-year fixed-rate mortgage, a 15-year fixed-rate mortgage has a higher monthly payment for the same mortgage lending value and interest rate. But a 15 year loan is usually a better deal as long as you can afford the monthly payments. This usually includes the option of getting a lower interest rate, paying off your mortgage earlier, and paying less total interest in the long run.

5/1 adjustable rate mortgages

A 5/1 variable rate mortgage has an average rate of 2.99%, a 4 basis point decrease from a week ago. An ARM mortgage typically gives you a lower interest rate for the first five years than a 30-year fixed-rate mortgage. But you can pay more after that time, depending on the terms of your loan and how the interest rate adjusts to the market rate. For borrowers planning to sell or refinance their home before interest rates change, an ARM could be a good option. If not, market shifts can increase your interest rate significantly.

Mortgage rate trends

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

The current mortgage rates
Repayment term Daily rate Last week change
30 year mortgage rate 2.98% 3.01% -0.03
15 years fixed rate 2.28% 2.31% -0.03
30 year jumbo mortgage rate 2.80% 2.78% +0.02
30 year mortgage refinancing rate 2.97% 2.99% -0.02

Prices valid from August 2nd, 2021.

How to Find Personalized Mortgage Rates

You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. When looking for a mortgage, consider your current financial situation and goals. Factors that could affect the mortgage rate include: your creditworthiness, down payment, loan-to-value ratio, and your debt-to-income ratio. Good credit, a larger down payment, a lower DTI, a lower LTV, or a combination of these factors can help you get a lower interest rate. The interest rate isn't the only factor that affects the cost of your home – consider other factors too, such as fees, closing costs, taxes, and discount points. Make sure you compare with multiple lenders – such as credit unions and online lenders, and local and national banks – to find a mortgage that suits you best.

What is the best repayment term?

When choosing a mortgage, it is important to consider the repayment term or payment schedule. The most common mortgage terms are 15 years and 30 years, but there are also 10, 20 and 40 year mortgages. Mortgages are further divided into fixed rate and adjustable rate mortgages. The interest rates on a fixed-rate mortgage are stable over the life of the loan. With adjustable rate mortgages, the interest rates are stable for a certain number of years (usually five, seven or 10 years), then the interest rate fluctuates annually based on the market rate.

One important factor to consider when choosing between a fixed rate mortgage and an adjustable rate mortgage is how long you plan to live in your home. If you want to live in a new home for the long term, fixed-rate mortgages may be a 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, if you don't plan on keeping your new home for more than three to ten years, a variable rate mortgage may be a better deal for you. The best repayment term depends on your personal situation and your goals. Therefore, when choosing a mortgage, consider what is important to you.

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source https://seapointrealtors.com/2021/08/02/here-are-mortgage-rates-for-august-2-2021-rates-tick-down/

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