Today's average mortgage and refinance rates by loan type

Lenders nationwide provide weekday mortgage rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans. The interest rate table below is updated daily to give you the most current purchase rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single family residence. To learn more, see understanding Bankrate's rate averages.

• Purchase
• Refinance

Product	Interest Rate	APR
30-Year Fixed Rate	3.040%	3.240%
20-Year Fixed Rate	2.890%	3.070%
15-Year Fixed Rate	2.300%	2.580%
7/1 ARM	3.020%	3.740%
5/1 ARM	2.790%	3.920%
10/1 ARM	3.260%	3.920%
30-Year Fixed-Rate FHA	2.590%	3.470%
30-Year Fixed-Rate VA	2.670%	2.860%
30-Year Fixed-Rate Jumbo	3.050%	3.160%
15-Year Fixed-Rate Jumbo	2.300%	2.380%
7/1 ARM Jumbo	3.280%	3.570%
5/1 ARM Jumbo	2.910%	3.610%

Product	Interest Rate	APR
30-Year Fixed Rate	3.010%	3.160%
20-Year Fixed Rate	2.870%	3.020%
15-Year Fixed Rate	2.290%	2.500%
7/1 ARM	3.530%	3.740%
5/1 ARM	2.700%	3.990%
10/1 ARM	3.850%	3.900%
30-Year Fixed-Rate FHA	2.630%	3.520%
30-Year Fixed-Rate VA	2.710%	2.930%
30-Year Fixed-Rate Jumbo	3.020%	3.090%
15-Year Fixed-Rate Jumbo	2.290%	2.350%
7/1 ARM Jumbo	3.850%	3.620%
5/1 ARM Jumbo	2.690%	3.700%

Rates as of Tuesday, September 28, 2021 at 6:30 AM

How mortgage rates work

Mortgage interest is basically how much you pay the bank to borrow its money. If you’re taking out a $100,000 mortgage, you’ll pay back more than $100,000 over time for the privilege. Generally speaking, shorter-term loans have lower interest rates than longer-term ones. With that lower interest rate and more-rapid payback, a 15-year mortgage, for example, will be a lot less expensive overall than a 30-year one. The flip side is, shorter-term loans mean higher monthly payments, so even though they save you money overall, they can squeeze your monthly budget unless you go for a cheaper home to offset the higher payment.

Why compare mortgage rates?

Shopping around for quotes from multiple lenders is one of Bankrate’s most important pieces of advice for every mortgage applicant. When you shop, it’s important to think about not just the interest rate you’re being quoted, but also all the other terms of the loan. Be sure to compare APRs, which include many additional costs of the mortgage not shown in the interest rate. Keep in mind that some institutions may have lower closing costs than others, or your current bank may extend you a special offer. There’s always some variability between lenders on both rates and terms, so make sure you understand the full picture of each offer, and think about what will suit your situation best.

Top 5 Bankrate Mortgage Lenders

• Better Mortgage Corporation: Best online lender
• Cardinal Financial Company: Best for low credit borrowers
• AmeriSave Mortgage Corporation: Best for refinancing
• Fairway Independent Mortgage Corporation: Best for first-time homebuyers
• Chicago Mortgage Solutions LLC: Best non-bank lender

Methodology

Bankrate helps thousands of people find mortgage and refinance lenders every day. To determine the best mortgage lenders, we used proprietary data to see which mortgage lenders on our platform received the most leads within a three-month period. More than 150 lenders were included in the evaluation. We then used our editorial expertise and judgment to assign superlatives to each lender based on factors such as fees, products offered, convenience and other criteria. We update this list regularly.

Better Mortgage Company: Best online lender

Better.com is a 100 percent online lender that offers a range of low interest rate mortgage products for consumers across the United States. It holds the first spot on Bankrate’s June 2021 list of Best Mortgage Lenders.

Strengths: This digital lender can shave off time when it comes to your mortgage preapproval and closing process. Consumers experienced a three minute pre approval process and 21 day closing process on average. Better.com is available in 46 states along with Washington D.C.

If you’re a prospective borrower who receives a competitive rate elsewhere, you can take advantage of its Better Price Guarantee to match that rate quote. Alongside this guarantee, Better.com will give you $100 even if they can’t mirror that same offer.

For the home buyer who isn’t well-aquainted with digital mortgage lenders, Better.com does offer seven days a week support by phone as well as online if you have questions.

Weaknesses: There are limitations on the variety of mortgage products offered. If you’re looking for government insured loans such as those from the USDA or VA, you’ll have to search elsewhere.

It’s worth noting that you can only take advantage of the Better Price Guarantee, if you apply directly online at Better.com.

If you’re a borrower who isn’t tech-savy and rather would trust the in-person experience, this digital process may be an adjustment for you.

Read Bankrate's full Better Mortgage review

Cardinal Financial Company: Best for low credit borrowers

Cardinal Finance Company, also known as Sebonic Financial is a hybrid mortgage lender offering both an in person and online experience for potential borrowers.

It offers a wider range of mortgage products for the first-time homebuyer compared to its competitors.

Strengths: First time homebuyers have the opportunity to receive quotes on not just conventional loans but those insured by the FHA, USDA and VA as well. Both the FHA and USDA tend to have minimum credit score requirements of at least 580 while for VA insured loans that number inches lower to 550.

The lender also offers a speedy prequalification and preapproval process for those looking to save time. Cardinal Finance Company reports that some borrowers have been able to close their mortgage in as little as seven days.

The average time, the lender claims, hovers around 30 days.

Another strength is that homebuyers in all 50 states can access this lender.

Weaknesses: Not all the information regarding current mortgage rates and associated lender fees are listed on the website. You’ll need to seek out a representative via phone or physical branch.

Read Bankrate's full Cardinal Financial review

AmeriSave Mortgage Corporation: Best for refinancing

AmeriSave Mortgage Corporation is one of the nation’s largest mortgage lenders having licensed over 800 mortgage originators. It offers an array of mortgage products ranging from conventional and fixed mortgages to those insured by government agencies.

Strengths: The lender has a strong track record of lending mortgages with over $55 billion in loans funded year till date.

If you’re someone who is looking to save time in their loan process, AmeriSave’s timeline may fit with yours. The company has closed loans on an average of 25 days and offers prequalification along with custom mortgage rate quotes in as little as three minutes.

The company has greater transparency in regards to mortgage rates and fees compared to other lenders. Borrowers have the ability to view the full range of rates and products they can qualify for after they hand in a mortgage application.

The company also notes it does not charge loan origination fees for those looking to save some cash.

For the first-time homebuyer, AmeriSave also hosts a Knowledge Center, where you can familiarize yourself with mortgage jargon.

Weaknesses:You’ll still need to pay a flat $500 mortgage application fee, even if the origination fees are waived.

There also aren’t any unique perks for first time homebuyers besides the Knowledge Center.

Read Bankrate's full AmeriSave Mortgage Corporation review

Fairway Independent Mortgage Corporation: Best for first-time homebuyers

With more than 700 branches across the U.S., Fairway Independent Mortgage Corporation offers flexibility for both first-time and experienced homebuyers. It also offers a mobile app called FairwayNow where you can directly message your lender.

Strengths: If you’ve never taken out a mortgage before, you’re in luck. This lender offers an extensive glossary of mortgage terms you can read up on. You also can take advantage of loans that are insured by the FHA, VA and USDA. These have less strict credit score requirements and upfront down payments compared to conventional loans.

Weaknesses: You’ll have to talk to a representative to learn about lender fees as well as mortgage interest rates, as Fairway does not post these online.

If you live in Alaska or West Virginia you won’t be able to seek advantage of this lender as it’s available in all other 48 states. The same applies if you live in U.S. territories.

Read Bankrate's full Fairway Independent Mortgage Corporation review

Chicago Mortgage Solutions (Interfirst Mortgage Company): Best non-bank lender

Chicago Mortgage Solutions, also named Interfirst Mortgage Company acts as a retail lender, wholesaler and correspondent when it comes to mortgages.

Strengths: The company says in certain circumstances you can qualify for a mortgage in minutes.

Chicago Mortgage Solutions also received A+ rating from the Better Business Bureau, which is a good resource to determine a lender’s trustworthiness.

As a borrower, you have multiple options to apply for a mortgage. The company offers pathways through online, a broker or even a bank/credit union. This may come in handy if you aren’t tech-savvy or prefer talking in-person with a representative.

Weaknesses:It’s only licensed in 19 states so depending on where you live you may not have access to their products.

Another downside is if you’re trying to compare mortgage rates to other lenders, since Interfirst Mortgage doesn’t advertise daily rates on their website.

Read Bankrate's Interfirst Mortgage Company user reviews

Mortgage FAQs

• What is a mortgage?

  A mortgage is a type of loan designed for buying a home. Mortgage loans allow buyers to break up their payments over a set number of years, paying an agreed amount of interest. Mortgages are also legal documents that allow the mortgage holder to claim the property if the buyer doesn’t make their payments. It also protects the buyer by forbidding the mortgage holder from taking the property while regular payments are being made. In this way, mortgages protect both the mortgage holder and the buyer.

• Different types of mortgages

  All of which can affect the interest rate you receive in different ways. There are three main types of mortgages: conventional, government-insured, and jumbo loans, also known as non-conforming mortgages.

  Conventional mortgages

  These are loans that ultimately are bought by Fannie Mae or Freddie Mac, the big investors that play an important role in the lending market.

  Fixed-rate mortgages

  A fixed-rate mortgage has an interest rate that doesn’t change throughout the life of the loan. In that way, borrowers are not exposed to rate fluctuations. For example, if you have a fixed-rate mortgage with a 4.5 percent interest rate and prevailing rates shoot up to 6 percent the next week, year or decade, your interest rate is locked in, so you don’t ever have to worry about paying more. Of course if rates fall, you’ll be stuck with your higher rate. Keep in mind, fixed-rate only refers to the rates, but there are many types of fixed-rate mortgages, such as 15-year fixed rate, jumbo fixed-rate and 30-year fixed rate mortgages

  Adjustable-rate mortgages

  Adjustable-rate mortgages, or ARMs, have an initial fixed-rate period during which the interest rate doesn't change, followed by a longer period during which the rate may change at preset intervals. Unlike a fixed-rate mortgage, ARMs are affected by market fluctuationss. So if rates drop, your mortgage payments will drop. However, the reverse is also true — when rates rise, your monthly payments will also rise. Generally, interest rates are lower to start than with fixed-rate mortgages, but since they’re not locked in to a set rate, you won't be able to predict future monthly payments. ARMs come with an interest rate cap above which your loan can not rise.

  Government-insured mortgages

  FHA loans, VA loans, USDA loans

  Government-insured or government-backed loans are backed by three agencies: the Federal Housing Administration (FHA loans), the U.S. Department of Agriculture (USDA loans) and the U.S. Department of Veterans Affairs (VA loans). The U.S. government isn’t a mortgage lender, but it sets the basic guidelines for each loan type offered through private lenders. Government-backed loans can be good options for first-time homebuyers as well as folks who have a lower down payment or smaller budget. The requirements are usually looser than those for mortgages not secured by the government. These are known as conventional mortgages. The interest rates on FHA, VA and USDA loans are similar to conventional mortgages, but fees and other costs are higher.

  Non-conforming mortgages

  Jumbo mortgages

  Jumbo mortgages aare conventional loans that have non-conforming loan limits. This means the home prices exceed federal loan limits. For 2021, the maximum conforming loan limit for single-family homes in most of the U.S. is $548,250, according to the Federal Housing Finance Agency. Jumbo loans are more common in higher-cost areas and generally require more in-depth documentation to qualify. Jumbo loans can be a bit more expensive than conforming loans. As of Bankrate’s May 12 survey, the average rate on a 30-year jumbo was 3.37 percent, compared to 3.19 percent for 30-year conforming mortgages.

• Mortgage requirements and qualifications

  To land a conventional loan, you’ll generally need solid credit and a steady paycheck. Qualification gets a bit tricky for borrowers who are self-employed. Down payments are another area of confusion. You’ll get the best deal with 20 percent down, but there are many programs that allow you to put down much less -- as little as 3 percent for conventional loans, and nothing down for VA loans.

  What credit score is needed to buy a house

  Your credit history is one of the primary indicators a lender will look at. To get the best rate on a conventional loan, you’ll need good credit -- 740 or higher. However, that doesn’t mean you’re out of luck if you have spotty credit. You still can get a loan, but other costs will be higher. FHA and VA loans are available to borrowers with credit scores below 700 -- but both programs carry additional fees.

  How my credit score affects my rate

  For conventional loans, your credit score is the most important factor determining your rate. If your score is below 740, your rate will rise. For FHA and VA loans, your credit score won’t affect your rate, but taking one of these loans does boost your overall costs. Both programs carry steep add-ons in the form of funding fees or mortgage insurance.

• What is the difference between APR and interest rate?

  The difference between APR and interest rate is that the APR (annual percentage rate) is the total cost of the loan including interest rate and all fees. The interest rate is just the amount of interest the lender will charge you for the loan, not including any of the administrative costs. By capturing points and fees, the APR is a more accurate picture of how much the loan will cost you, and allows you to compare loan offers with differing interest rates and fees.

  Here’s what may be included in the APR:

  • Interest rate.That’s pretty straightforward and is simply the percentage rate paid over the life of the loan.
  • Points.This is an upfront fee the borrower can opt to pay to lower the interest rate of the loan. Each point, which is also known as a discount point, costs 1 percent of the mortgage amount. So, one point on a $300,000 mortgage would cost $3,000 upfront.
  • Mortgage broker fees.Brokers can help borrowers find a better rate and terms, but their services must be paid for when the loan closes. This cost is shown in the APR and can vary. The broker's commission typically ranges from 0.50 percent to 2.75 percent of the loan principal.
  • Some closing costs, including loan origination fees.But title insurance and prepaid items are not and these costs are considerable. Closing costs typically range from about 2 to 5 percent of the loan amount.

• How do I get a mortgage?

  It is important to prepare for the mortgage application process to ensure you get the best rate and monthly payments within your budget.

  Here are quick steps to prepare for a mortgage:

  • Build your credit
  • Set a limit on what you can afford
  • Set savings aside for both down payment and expected monthly payments
  • Research the best type of mortgage for you
  • Get preapproved
  • See multiple houses within your budget
  • Apply for a mortgage loan
  • Get approved!
  • Close on your new house

  For details on each step of the mortgage process, read more: How to get a mortgage guide.

  You should also make sure you are ready to be a home-buyer. While it is advantageous to get a mortgage when rates are low, first ensure that it makes sense for your budget and long term financial goals. Rates will also vary by lender and other factors such as down payment & credit score. For more information, check out our guide on buying a house in 2021.

• How much can I borrow for a mortgage?

  The amount you can borrow depends on a variety of factors, including how much you’re qualified for (depending on your income, among other factors) as well as what type of loan you have. Conforming mortgages have limits while jumbo loans allow borrowers to exceed those limits. It’s a good idea to figure out your budget before you start shopping for a house, so check out Bankrate’s "how much house can I afford?" calculator.

• What is the best mortgage loan type for me?

  The best mortgage type depends on your budget and financial goals. Some people want lower monthly payments, even if that means paying more in interest over the life of the loan; in that case, a 30-year mortgage is likely the best option. Whereas others might be able to afford bigger monthly payments and want to minimize the amount of interest they pay, which would make the 15-year mortgage a better choice.

  As far as interest rates, a fixed-rate is usually the best choice for folks who plan on staying in their home longer than a few years. Because adjustable-rate mortgages (or ARMs) usually have a lower interest rate to begin with, people who are going to sell their house within a couple years (or before they expose themselves to higher interest rates) might choose that option.

• How do I choose a mortgage lender?

  Mortgage lenders come in all shapes and sizes, from online companies to brick-and-mortar banks — and some are a mix of both. Decide what type of service and access you want from a lender and balance that with how competitive their rates are. You might decide that getting the lowest rate is the most important feature for you, while others might go with a slightly higher rate because they can apply in person, for example.

  Some banks offer discounts to existing customers, so you might be able to save money by getting a loan where your savings account or checking account is.

  And if your credit is a bit tarnished, many lenders offer loans with lower down payment and credit requirements through the FHA. Veterans will find VA mortgages especially attractive.

• Pros and cons of getting a mortgage vs. renting

  Homeownership is synonymous with the American dream, but the housing boom has pushed this goal out of reach of many. Some of the advantages and disadvantages of homeownership:

  Pros

  • A home is a powerful way to build wealth over time.
  • Homeownership provides the certainty of knowing where you’ll live from one year to the next.
  • With a fixed-rate mortgage, you know your principal and interest costs won’t change. A landlord can boost your rent when your lease is up.

  Cons

  • Homeownership is expensive, prohibitively so in some markets.
  • Maintenance and repairs are a constant -- and costly -- reality for homeowners.
  • As home values rise, so are insurance premiums and property taxes.

• How are mortgage rates set?

  It’s not an exact science, but mortgage rates are influenced by a variety of factors, including Federal Reserve policy, Treasury bond yields, supply and demand in the housing market and even inflation. Lending institutions have a range of rates they offer each day (mortgage rates can change daily), but the specific interest quoted to any single borrower is determined partly by the applicant’s personal financial situation.

• How do I find and compare current mortgage rates?

  Step 1: Determine what mortgage is right for you

  When finding current mortgage rates, the first step is to decide what type of mortgage best suits your goals and budget. Most borrowers opt for 30-year mortgages, but that’s not the only choice. Typically, 15-year mortgages have lower rates but larger monthly payments than the more popular 30-year mortgage. Adjustable-rate mortgages usually have lower rates to begin with, but the downside is that you’re not locked into that rate, so it can change over the life of your loan.

  Step 2: Compare mortgage rates

  Once you decide which mortgage type fits your needs, you can begin comparing current mortgage options. There’s only one way to be sure you are getting the best available rate -- and that’s to shop as many lenders as possible. Aiming for a minimum of three lenders. Look at online lenders, brick-and-mortar lenders and the banks or credit unions you do business with. Mortgage brokers may also offer good rates and terms.

  Bankrate’s rate tables (at the top of this page) are updated every business day and contain up-to-date interest rates, APRs, upfront fees and monthly payments for the amount you choose. Utilize these tables to familiarize yourself with the mortgage rates that are currently available, then compare them to decide which option best suits your financial needs. Keep in mind that these are average rates for comparison shopping. Your exact rate will depend on multiple factors, including your credit score, the size of your loan, the location of your house and the term of your mortgage.

  Bankrate’s mortgage calculator can help you estimate your monthly mortgage payment based on a variety of factors that you choose. You can input various home prices, down payments, loan terms and interest rates to see how your monthly payment changes.The monthly payment estimates show principal and interest based on current mortgage rates, property taxes and homeowners insurance. You can also factor in your credit score range, ZIP code and HOA fees to give you a more precise payment estimate.

  The bottom line: Be sure to look at the APR, not just the interest rate when deciding the best mortgage rate for you. The APR is the total cost of the loan (which includes the interest rate and other fees). Some lenders might have the same interest rate but different APRs, which means you’ll be charged different fees.

• How do I find personalized mortgage rates?

  The only way to get a personalized mortgage rate is to apply for a mortgage. The good news is that most lenders don’t charge application fees and applying with multiple lenders (to see who offers the best rate) won’t negatively affect your credit score.

  Lenders consider your credit score, income, debt-to-income ratio and (sometimes) assets when determining what mortgage rate you’ll get. Lenders give high-risk borrowers (those with low credit scores, high debt-to-income ratio) higher interest rates to offset their exposure. Borrowers with a strong credit profile are more likely to get a lower mortgage rate.

• How does the Federal Reserve affect mortgage rates?

  Variable rates usually move in the same direction as the federal funds rate, so adjustable-rate mortgages would be affected. The federal funds rate, however, doesn’t directly affect long-term rates, which include financial products like 30-year fixed-rate mortgages; those tend to move with the 10-year Treasury yield.

• What is a discount point?

  Discount points help homebuyers reduce their monthly mortgage payments and interest rates. A discount point is most often paid before the start of the loan period, usually during the closing process. It's a type of prepaid interest made on the loan. Each discount point typically lowers in interest rate by 0.25 percent. For example, one point would lower a mortgage rate of 3 percent to 2.75 percent.

  The cost of a point depends on the value of the borrowed money, but it's generally 1 percent of the total amount borrowed to buy the home.

• What to know about mortgage rate locks?

  What is a mortgage rate lock?

  A mortgage rate lock freezes the interest rate. The lender guarantees (with a few exceptions) that the mortgage rate offered to a borrower will remain available to that borrower for a stated period of time. With a lock, the borrower doesn’t have to worry if rates go up between the time they submit an offer and when they close on the home.

  When should I lock my mortgage rate?

  Most lenders offer a 30- to 45-day rate lock free of charge. This means if the interest rate increases before your loan closes, you get the stated rate. However, if rates fall you won’t benefit unless you restart the loan process, a costly and time-consuming endeavor.

  Although some lenders offer a free rate lock for a specified period, after that period they may charge fees for extending the lock. The pandemic made closing schedules a little less certain as many lenders contended with a flood of applications, so you should ask how long your loan will take to close and decide whether the lock will cover that period.

  Interest rates have been mostly falling since the pandemic began, so it’s probably not worth it to pay for an extended lock. Some lenders will offer a rate lock with a float-down provision. This means that if rates fall within a specific period after your loan is approved, you get the lower rate. If rates go up, you get the rate you were quoted.

Do you already own a home and want to refinance?

Refinancing your mortgage can be a good financial move if you lock in a lower rate. However, there are upfront costs associated with refinancing, such as appraisals, underwriting fees and taxes, so you’ll want to be sure the savings outpace the refinance price tag in a reasonable amount of time, say 18 to 24 months.

While mortgage rates have risen from the record lows of late 2020 and early 2021, they remain at historically low levels. That means millions of homeowners still could save by refinancing. Reducing your rate isn’t the only reason to refinance. It’s also possible to tap into your home equity to pay for home renovations. Or, if you want to pay down your mortgage more quickly, you can shorten your term to 20, 15 or even 10 years. And because home values have risen sharply, it’s possible that a refinance could free you from paying for private mortgage insurance.

For more information, visit Bankrate’s mortgage refinancing hub. Learn more about refinance rates.

Check out Bankrate’s guide to paying for repairs and 203(k) mortgages for more information.