Today’s 30-year mortgage rates

Today's 30-year mortgage rates

The table below brings together a comprehensive national survey of mortgage lenders to help you know what are the most competitive 30-year mortgage rates. This interest rate table is updated daily to give you the most current rates when choosing a 30-year mortgage loan.

Rates as of Tuesday, October 20, 2020 at 6:30 AM

What is a 30-year fixed mortgage?

A 30-year, fixed-rate mortgage has an interest rate that doesn’t change over the full term of the loan. It’s a popular choice for many homebuyers because of its stable monthly principal and interest payment that allows homeowners to budget housing expenses over the long haul.

Historical 30-year rates

According to Freddie Mac historical data, the 30-year fixed rate shot up to about 18 percent in September and October of 1981, which would give current homebuyers quite the sticker shock. The U.S. was in the midst of an economic recession back then, and the Federal Reserve hiked rates in an effort to curb inflation.

Today, mortgage rates are near historic lows, hovering near 3 percent. Knowing where rates have been — and what drives them — can help you put things into perspective as you evaluate loan offers.

When the housing crisis hit in 2008, the average annual 30-year fixed rate was 6.23 percent, according to historical Bankrate data. Since then, it has fallen considerably. When 30-year fixed mortgage rates decline, getting a mortgage is more affordable for homebuyers and those looking to refinance. However, home-prices, which have been rising for the last several years, can present a barrier for potential homeowners even when mortgage rates are low.

The benchmark 30-year fixed rate hit a record low of 3.05 percent during the week of Sept. 30, 2020, according to historical Bankrate data.

Bankrate average annual 30-year fixed mortgage rate, 2008-2018

Year	Average 30-Year Fixed Annual Rate
2008	6.23%
2009	5.38%
2010	4.86%
2011	4.65%
2012	3.88%
2013	4.16%
2014	4.31%
2015	3.99%
2016	3.79%
2017	4.14%
2018	4.70%
2019	4.13%

When to consider a 30-year fixed mortgage

Choosing the right home loan is an important step in the homebuying process, and you have a lot of options. You need to take several factors into consideration, such as your credit score, income, down payment amount, budget and financial goals. Here are the main benefits and drawbacks of a 30-year fixed mortgage.

Pros of a 30-year mortgage

• Lower monthly payment: Repaying a mortgage over 30 years means you’ll have lower, more affordable payments spread out over time compared to shorter-term loans like 15-year mortgages.
• Stability: Having a consistent principal and interest payment helps you better map out your housing expenses for the long term. (Your overall monthly housing expenses can change, however, if your homeowners insurance and property taxes go up or down.) Of course, this is only true if your mortgage has a fixed rate. An adjustable-rate mortgage won’t give you this same benefit for the whole life of the loan.
• Buy more house: With lower payments, you might be able to qualify for a larger loan amount and a more expensive home.
• More wiggle room: Lower monthly payments can provide more cushion in your budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.

Cons of a 30-year mortgage

• More total interest paid: Stretching out repayment to a 30-year term means you’ll wind up paying more in interest overall than you would with a shorter-term loan.
• Higher mortgage rates: Lenders usually charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
• Becoming house poor: Just because you might be able to afford more house with a 30-year loan doesn’t mean you should overstretch your budget. Give yourself some breathing room for other financial goals and unexpected expenses.
• Slower equity growth: It will take longer to build equity in your home because most of your initial mortgage payments will go towards interest rather than paying down your principal amount.

Is a 30-year fixed mortgage right for you?

Choosing the right home loan is an important step in the homebuying process, and you have a lot of options. You need to take several factors into consideration, such as your credit score, income, down payment amount, budget and financial goals. Here’s how a 30-year fixed mortgage stacks up against other loan types.

Loan type	Interest rate	Pros	Cons	Best for
30-year fixed	Interest rate Fixed for term of 30 years	Pros Lower monthly payments Predictability Afford more house	Cons Pay more in total interest Slightly higher rates Could wind up overborrowing	Best for Homebuyers who plan to stay in a home for a long time and want lower monthly payments
15-year fixed	Interest rate Fixed for term of 15 years	Pros Lower rates Less total interest paid Build equity faster	Cons Higher monthly payments Ties up your money into your house	Best for Homebuyers who plan to stay in a home for a long time and who can afford the higher monthly payment
5/1 and 7/1 adjustable-rate mortgage	Interest rate Fixed for the first 5 and 7 years, then can go up or down for remainder of loan term	Pros Lower rates than fixed loans for initial years Lower monthly payments	Cons Payments could become unaffordable when loan resets Might be difficult to sell or refinance later	Best for Homebuyers who plan to live in a home for just a few years and want a lower monthly payment
FHA loan	Interest rate Fixed or adjustable (terms vary)	Pros Low credit score requirement Minimum 3.5% down payment	Cons Mandatory mortgage insurance that cannot be canceled Upfront and annual mortgage insurance premiums	Best for Lower-income borrowers or those with less-than-pristine credit and a small down payment
VA loan	Interest rate Fixed or adjustable (terms vary)	Pros No down payment required Low interest rates No PMI No minimum credit score	Cons Requires a funding fee Some lenders have overlays for credit score and other requirements	Best for Eligible military veterans or active-duty personnel and their spouses
Jumbo loan	Interest rate Fixed or adjustable (terms vary)	Pros Finance a home that exceeds conforming loan limits Competitive interest rates	Cons Require higher down payments Need more cash reserves Harder to qualify for	Best for Homebuyers in expensive housing markets who cannot qualify for a conforming loan

Refinancing a 30-year mortgage

It’s generally a good idea to refinance your 30-year fixed mortgage into a new loan if you can get a lower interest rate, lower monthly payment, or improve your financial situation in another way. However, if you’re several years into repaying your loan and you refinance into a new 30-year mortgage, you’ll be paying more total interest in the long run by starting the repayment clock from scratch again.

You’ll also need to determine if the closing costs on your new loan outweigh the savings you’ll gain from lower monthly payments over time. When you refinance a 30-year mortgage, you’ll pay lender origination fees and third-party fees for an appraisal and other closing costs. Most lenders also require you to have at least 20 percent equity in your home to refinance, so make sure you qualify before planning a new budget for yourself.

Keep in mind that most mortgage refinances set to close on or after Dec. 1, 2020 will be assessed a 0.5 percent fee, which will make them slightly more expensive. Many lenders are already pricing the fee into their loan offers. The fee was announced by the Federal Housing Finance Agency earlier this year, and applies to all FHFA-backed loans valued at $125,000 or more.

If you can, consider refinancing a 30-year mortgage into a shorter loan, which will avoid lengthening your repayment and save you on interest. Keep in mind, though, you might have a higher monthly payment depending where you are in the amortization schedule.

How do I view personalized 30-year mortgage rates?

Use the tool at the top of this page to see what kind of rates are available in your situation. You just need to give us a little information about your finances and where you live. With that data, Bankrate can show you real-time estimates of mortgages available to you from a number of providers.

Other mortgage tools:

• Mortgage calculator: estimate your monthly payment and see how much house you can afford
• Compare today's top refinance rates: lower your monthly mortgage payment
• First time home buyers grants and programs: get financial assistance to lower your down payment and closing costs

Learn more about specific loan type rates

Loan Type	Purchase Rates	Refinance Rates
The table above links out to loan-specific content to help you learn more about rates by loan type.
30-Year Loan	30-Year Mortgage Rates	30-Year Refinance Rates
20-Year Loan	20-Year Mortgage Rates	20-Year Refinance Rates
15-Year Loan	15-Year Mortgage Rates	15-Year Refinance Rates
10-Year Loan	10-Year Mortgage Rates	10-Year Refinance Rates
FHA Loan	FHA Mortgage Rates	FHA Refinance Rates
30-Year FHA Loan	30-Year FHA Loan Rates	30-Year FHA Refinance Rates
VA Loan	VA Mortgage Rates	VA Refinance Rates
ARM Loan	ARM Mortgage Rates	ARM Refinance Rates
5/1 ARM	5/1 ARM Rates	5/1 Refinance Rates
7/1 ARM	7/1 ARM Rates	7/1 Refinance Rates
10/1 ARM	10/1 ARM Rates	10/1 Refinance Rates
Jumbo Loan	Jumbo Mortgage Rates	Jumbo Refinance Rates
30-Year Jumbo Loan	30-Year Jumbo Loan Rates	30-Year Jumbo Refinance Rates