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Current mortgage rates
Historic 30-year mortgage rates
Here are the lowest 30-year fixed rates each year, from 2011 to 2021:
In the past couple of decades, it wasn’t uncommon to see 30-year rates in the 5% to 6% range. Pre-2000, rates were even higher, sometimes reaching double digits. During the pandemic, rates reached historic lows, at times dropping below 3%.
Now, rates are rising from the historic lows of the pandemic, and have recently inched up past 5%.
What is a 30-year fixed mortgage?
When you apply for a mortgage, you choose between two basic types of loans: a fixed-rate mortgage or an adjustable-rate mortgage.
A fixed mortgage locks in your rate for the entire life of your loan. An adjustable mortgage keeps your rate the same for the first few years, then changes it periodically, usually once per year.
When you choose a fixed mortgage, you select the term length. A 30-year loan is the most common term length for new mortgages, but lenders offer other term options.
A 30-year fixed mortgage keeps your rate the same for all 30 years, until you’ve completely paid off your mortgage. If mortgage rates in the US trend upward or downward during those 30 years, you won’t be affected. Whereas if you had chosen an adjustable-rate mortgage, then your rate would go up or down every year based on the economy.
Is a 30-year fixed mortgage a good deal?
If a low, stable monthly payment is important to you, a 30-year fixed-rate mortgage might be a good deal. But 30-year fixed rates are also higher right now than they’ve been in over a decade. If you want a lower interest rate, other options might suit you better.
Adjustable rates are lower than 30-year fixed rates, but your rate might increase once the intro rate period ends. This means that an ARM could be the better deal if you want to sell the home before your intro rate period ends, but a fixed rate is likely better if you want to stay in the house for a long time.
You’ll also pay a lower rate with a shorter term, like a 20-year or 15-year fixed mortgage. That’s the general rule: The shorter your fixed-rate term, the lower the rate. And you’ll pay less interest over time with a shorter term, because the mortgage will be paid off sooner.
But your monthly payments will be lower with a 30-year mortgage than with a shorter term, because the loan payments are spread out over a longer amount of time.
How to get a good 30-year fixed rate
Lenders take your financial profile into consideration when determining an interest rate. The better your finances are, the lower your rate will be.
Lenders look at three main factors:
, and debt-to-income ratio.
- Down payment: Depending on which type of mortgage you take out, a lender might require anywhere from 0% to 20% for a down payment. But the higher your down payment is, the lower your rate will likely be. If you can provide more than the minimum, you could score a better rate.
- Credit score: Most mortgages require a minimum 620 credit score, and an FHA loan lets you get a mortgage with a 580 score. But the higher your score is, the better. If you can get your credit score above the minimum requirement, then you could snag a lower rate. To improve your score, try making payments on time, paying down debts, and letting your credit age.
- Debt-to-income ratio: Your DTI is the amount you pay toward debts each month in relation to your monthly income. Most lenders want to see a maximum DTI ratio of 36%, but you can land a lower rate with a lower DTI ratio. To decrease your DTI ratio, you either need to pay down debts or earn more money.
If you have a large down payment, excellent credit score, and low DTI ratio, then you should be able to get a good 30-year fixed rate.
Is a 30-year fixed mortgage a good fit for you?
You’ll probably like a 30-year fixed mortgage if you want relatively low monthly payments.
You might prefer a shorter term if you want to be aggressive about paying off your mortgage faster, and if you can withstand higher monthly payments.
You don’t necessarily need to stay in a home for 30 years to benefit from a 30-year mortgage. Even if you plan to move in a few years, you can benefit from the low monthly payments.
You may prefer an adjustable-rate mortgage if you want to move before your intro period rate ends, because adjustable rates are starting lower than fixed rates. For example, if you get a 7/1 ARM and move before the seven-year mark, you’ll never risk your rate increasing.
How do you find personalized 30-year fixed rates?
We’re showing national average mortgage rates, but you can find personalized rates based on your down payment amount, credit score, and debt-to-income ratio.
Use our free
to see how today’s 30-year rates will affect your monthly payments and long-term finances.
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
Some online lenders, such as Ally and Better.com, provide personalized rates with their own digital calculators.
You may apply for prequalification with a lender to get an idea of the rate you’ll pay. If you’re ready to shop for homes, you can apply for preapproval.
The pros and cons of 30-year fixed mortgages
What’s the difference between a mortgage interest rate and APR?
When searching for rates, you’ll probably see two percentages pop up: interest rate percentage and annual percentage rate (APR).
The interest rate is the rate the lender charges you for taking out a mortgage.
The APR shows you the full cost of borrowing, not just the interest rate. A mortgage’s APR takes into account things like points and fees paid to the lender in addition to your interest rate.
The APR gives you a better idea of how much you’ll actually pay to get a mortgage.