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 home seller to claim the property if the buyer doesn’t make their payments. It also protects the buyer by forbidding the seller from taking the property while regular payments are being made. In this way, mortgages protect both the seller and the buyer.

Today's Mortgage Rates: Compare Current Rates

Q: Are mortgage rates going up?

In 2021, mortgage rates are expected to start rising again. The National Association of Realtors expects rates to average 3.1% and the Mortgage Bankers Association says mortgage rates will average 3.3% in 2021. These rate estimates are both up from the 3.0% mortgage rate average in 2020 but lower than 2019 average rates. Many experts say it could be years before mortgage rates return to their pre-pandemic levels.

Q: 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. 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.

Q: 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. 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.

Q: 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 the conforming limits.

Q: 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.

Q: 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 interest rates, supply and demand in the housing market and even inflation. Lending institutions have a range of rates they offer each day, but the specific interest quoted to any single borrower is determined partly by the applicant’s personal financial situation.

What are today's mortgage rates?

For today, Sunday, February 28, 2021, the benchmark 30-year fixed mortgage rate is 3.250% with an APR of 3.450%. The average 15-year fixed mortgage rate is 2.530% with an APR of 2.810%. The 5/1 adjustable-rate mortgage (ARM) rate is 3.000% with an APR of 3.990%, according to Bankrate’s latest survey of the nation’s largest mortgage lenders. Check out our mortgage calculator for rates customized to your specific financial needs.

Current mortgage and refinance rates

Product	Interest Rate	APR
30-Year Fixed Rate	3.250%	3.450%
20-Year Fixed Rate	3.130%	3.350%
15-Year Fixed Rate	2.530%	2.810%
10/1 ARM Rate	3.030%	3.900%
7/1 ARM Rate	2.960%	3.820%
5/1 ARM Rate	3.000%	3.990%
30-Year VA Rate	3.050%	3.340%
30-Year FHA Rate	3.100%	3.930%
30-Year Fixed Jumbo Rate	3.290%	3.380%
15-Year Fixed Jumbo Rate	2.550%	2.610%
7/1 ARM Jumbo Rate	3.100%	3.780%
5/1 ARM Jumbo Rate	2.990%	3.880%

Product	Interest Rate	APR
30-Year Fixed Rate	3.320%	3.450%
20-Year Fixed Rate	3.240%	3.420%
15-Year Fixed Rate	2.610%	2.800%
10/1 ARM Rate	3.190%	3.970%
7/1 ARM Rate	3.020%	3.880%
5/1 ARM Rate	3.070%	4.050%
30-Year VA Rate	3.100%	3.350%
30-Year FHA Rate	3.050%	3.880%
30-Year Fixed Jumbo Rate	3.350%	3.410%
15-Year Fixed Jumbo Rate	2.640%	2.690%
7/1 ARM Jumbo Rate	3.170%	3.850%
5/1 ARM Jumbo Rate	3.030%	3.960%

Are mortgage rates going up?

Potential mortgage & housing trends for 2021

Overview of nation's top lenders

AmeriSave Mortgage Corporation

AmeriSave Mortgage Corporation claims to be one of the largest and fastest-growing direct-to-consumer mortgage lenders in the U.S. The digital lender has approximately 800 licensed mortgage originators, and growing, spread across the country, offering in-house underwriting, processing, funding and closing services.

Strengths: Available in all U.S. states (except for New York) and Washington D.C.; offers prequalification and customized rate quote in less than three minutes and without a hard credit pull (in most cases; time to close averages 25 days
Weaknesses: Doesn’t offer a first-time homebuyer program

Wells Fargo Home Mortgage

Wells Fargo Home Mortgage is a division of Wells Fargo, founded in 1952 with corporate headquarters in San Francisco, California. Although it’s one of the top mortgage lenders in the U.S., Wells Fargo Home Mortgage has a relatively basic online presence. However, with branch offices widely available, borrowers can meet in-person with a loan advisor to discuss their mortgage options.

Strengths: More than 7,200 branch locations; participates in low- and moderate-income programs that assist borrowers with down payments and/or closing costs; flexible application process
Weaknesses: Doesn’t operate in U.S. territories

LoanDepot

LoanDepot is both an online and brick-and-mortar lender with more than 200 branches nationwide. For borrowers who want a completely online experience, loanDepot created “mello smartloan.” From application to closing, the lender says this end-to-end digital service helps expedite the loan process. Features like digital income and employment and asset verification technology eliminate the need to fax or mail in paperwork. According to the lender, mello smartloan can clear closings in as little as eight days, and closings in general are up to 50 percent faster than the industry average.

Strengths: Online, phone and in-person service available; end-to-end mello smartloan gives borrowers option to get a loan completely online; loan modification programs available for eligible borrowers
Weaknesses: Lender fee information not available online

Quicken Loans/Rocket Mortgage

Rocket Mortgage by Quicken Loans is a leading online mortgage lender. The lender offers a broad selection of purchase and refinance loan options, and a flexible-term product called “YOURgage,” which allows borrowers to set the terms of their loan from eight to 29 years. The company gained prominence in the last few years by creating technology that allows borrowers to apply for loans completely online through Rocket Mortgage. Rocket Mortgage offers the customary menu of loan options, and borrowers can apply for mortgages and lock in rates completely online.

Strengths: Online and phone customer service available; loan options include fixed-rate, adjustable-rate (ARM), VA, FHA, flexible-term and jumbo loans; low down payment requirement (as little as 3 percent down)
Weaknesses: No brick-and-mortar locations; limited information about lender fees available online

Better Mortgage

Better Mortgage, also known as Better.com, is an online lender that was established in 2016. Better Mortgage provides a completely online process where rates, loan preapproval and resources are available 24/7.

Strengths: Ideal for tech-savvy borrowers who prefer an online experience, with human customer support available if needed; no commissions or fees charged; automated process yields rate quotes in seconds, a preapproval letter in three minutes and closing within 21 days
Weaknesses: No brick-and-mortar locations; VA and USDA loans not available

Bank of America Mortgage

Bank of America is a brick-and-mortar bank that offers mortgages, refinancing and home equity lines of credit that can be applied for online, via phone or at a branch. The bank, the second-biggest in the U.S. measured by assets, is headquartered in Charlotte, North Carolina, and has 4,300 branches.

Strengths: Provides interest rates online; can prequalify and apply for a loan online and submit documents digitally; low-down payment options available; discounts may be available for auto-pay, other factors
Weaknesses: Lender fees not listed on website

PennyMac Mortgage

PennyMac is a publicly traded, direct national lender that offers a wide range of loan options, as well as a first-time homebuyer program with a low down payment requirement (as little as 3 percent). PennyMac also has refinancing options, plus home equity loans, home equity lines of credit (HELOCs) and streamline refinancing. Although there are sales office locations, borrowers must apply online or by phone. PennyMac's offerings cater to various borrowing needs, including people with both excellent and average credit, investors, veterans, existing homeowners and first-time buyers.

Strengths: Online and phone customer service available; first-time homebuyer program with a low down payment requirement (as little as 3 percent down; offers a guarantee that they will close on time or the borrower gets a $500 Visa gift card (provided the late closing is the fault of PennyMac)
Weaknesses: No brick-and-mortar locations; customer service call center hours limited

Mr. Cooper Mortgage

Mr. Cooper is a non-bank mortgage lender and servicer in the U.S. offering a wide variety of services, including dedicated and non-dedicated loans and manual underwriting for clients with special circumstances.

Strengths: Available in all states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands; electronic submission of loan documents; easy-to-use app that allows borrowers to check application status and make payments
Weaknesses: Fees for services, including loan origination, rate lock and underwriting; no branch locations

How do I find and compare current mortgage rates?

The first step in finding current mortgage rates is to decide what type of mortgage best suits your goals and budget. Typically, 15-year mortgages have lower rates but larger monthly payments than the more popular 30-year mortgage. Similarly, 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.

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 to five 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 a 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?

What to know before getting a mortgage

The information below consists of information and tips that will be helpful in selecting the best mortgage for your financial situation.

What is a mortgage?

What is the difference between APR and interest rate?

How do I get a mortgage?

How much can I borrow for a mortgage?

What are the different types of mortgages?

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

Conventional mortgages

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 fluctuations. 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 as the requirements are usually looser than mortgages not secured by the government, these are known as conventional mortgages.

Non-conforming mortgages

Jumbo mortgages

Jumbo mortgages are 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

What is the best mortgage loan type for me?

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.

Most people will look for direct lenders, which are banks, credit unions, online entities and other organizations that provide mortgages directly to consumers. These lenders typically keep most of the mortgage process in-house from application to processing, and many assign a processor so you can ask them about rates, terms, fees, etc., and check on the loan’s progress any time.

Direct lenders may also be portfolio lenders that originate and fund loans to hold on to the loans and not resell them to government agencies Fannie Mae and Freddie Mac after closing. Typically, portfolio lenders include community banks, credit unions and savings and loans institutions.

Which lender you choose is entirely up to you. Many people opt for a large well-known lender like Wells Fargo or Quicken Loans. An increasing number go for online only operations, from which there are many to choose. Mortgage brokers may offer loans from banks or wholesale lenders, who only deal with brokers.

There are hundreds of mortgage lenders to choose from, each of which may have a dozen or more products, from fixed rate to variable, from 10-year terms to 30 years. Compare banks, credit unions and online lenders to see which ones offer the lowest interest rate, fewest fees, and down payment requirements that work for your budget.

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.

How are mortgage rates set?

How does the Federal Reserve affect mortgage rates?

What is a discount point?

What is a mortgage rate lock?

When should I lock my mortgage rate?

Mortgage News

Bankrate’s Housing Heat Index: A look at which states are benefiting most from the current housing boom

The Housing Heat Index shows how states’ real estate markets are faring in the coronavirus recession, and how they might perform in the future. To calculate the ranking, Bankrate analyzed six data points: annual home price appreciation reported by the Federal Housing Finance Agency’s Home Price Index; share of mortgages past due as reported by the Mortgage Bankers Association; unemployment and job growth from the U.S. Labor Department; the cost of living index from the Center for Regional Economic Competitiveness; and state-by-state tax burdens as reported by the Tax Foundation.

These five states had the strongest housing economies in the third quarter of 2020:

Utah – Its home values jumped 10.7 percent in the 12-month period that ended Sept. 30, fourth-best among U.S. states, according to the Federal Housing Finance Agency. Utah posted the strongest job growth in the nation from September 2019 to September 2020, according to a Bankrate analysis of Labor Department data. And its tax burden is among the lowest in the nation, according to the Tax Foundation.

Montana – Home prices rose 10 percent in the past year, and Montana has the nation’s lowest level of past-due mortgage payments, according to the Mortgage Bankers Association.

Missouri – A geographical outlier in our top five, Missouri experienced home price appreciation of 9.1 percent, 10th among all states. The job market remains strong, but its strongest suit is its rock-bottom cost of living. Missouri ranked third on the Center for Regional Economic Competitiveness index, making the state a compelling bargain for people moving from pricier markets.

Arizona – The state’s 11.1 percent price appreciation was second-highest in the nation, but Arizona’s ranking was pulled down a bit by an unemployment rate that was in the middle of the pack among U.S. states.

Idaho – Idaho’s home prices have been the hottest in the nation, jumping 14.4 percent in the year ending Sept. 30. And job growth is strong. However, Idaho’s overall ranking was tempered by middle-of-the pack readings for past-due loans, cost of living and taxes.

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.

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

Understanding the closing process

Mortgage

Compare current mortgage rates for today

How to use our mortgage rate table

How mortgage rates work

Why explore quotes?