What is a mortgage and how does it work?

A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home. The collateral for the mortgage is the home itself. That means if the borrower doesn’t make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money. A mortgage loan is typically a long-term debt taken out for 30, 20 or 15 years. Over this time (known as the loan’s “term”), you’ll repay both the amount you borrowed as well as the interest charged for the loan. Learn more: What is a mortgage?

Should you lock in your mortgage rate?

A mortgage rate lock guarantees — with a few exceptions — that the interest rate offered to you will remain available for a set period of time. With a lock, you won’t have to worry if market rates go up between the time you find a home, submit an offer and close. Most lenders offer a 30- to 45-day rate lock free of charge. Often, you’ll need to pay a fee to extend the lock period. Some lenders also offer a “float down” option, which allows you to lower your locked rate if prevailing rates fall — though you’ll likely have to pay a fee for this perk, too.Learn more: What is a mortgage rate lock?

How much are closing costs on a mortgage?

The closing costs on a mortgage encompass all of the fees associated with the loan, including lender fees, like the origination fee — which typically equals 1% of the loan principal — and optional points. Closing costs also include third-party fees, like the cost of an appraisal and title insurance. All together, these usually run anywhere from 2% to 5% of the amount you’re borrowing, above and beyond your down payment.Learn more: Mortgage closing costs

Who are the best mortgage lenders?

Depending on your needs, the best mortgage lenders are often the ones that offer the most competitive rates and fees, stellar customer service and convenience.Learn more: Best mortgage lenders in 2026

Current Mortgage Rates: Compare Today's Rates

Weekly national mortgage interest rate trends

Current mortgage rates

	30 year fixed	6.50%
	15 year fixed	5.84%
	10 year fixed	5.88%
	5/1 ARM	5.72%

For today, Saturday, April 04, 2026, the current average 30-year fixed mortgage interest rate is 6.50%. If you're looking to refinance your current mortgage, today's current average 30-year fixed refinance interest rate is 6.68%. Meanwhile, today's average 15-year refinance interest rate is 6.01%. Whether you need a mortgage now or plan to get one in the next year or two, it’s crucial to compare offers. Bankrate can connect you with current offers on various types of loans, often well below the national average. We display the lender’s interest rate, APR (rate plus costs) and estimated monthly payment to help you more easily find the best mortgage for your needs.

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Bankrate's Mortgage Rate Variability Index

The Mortgage Rate Variability Index reads 6 out of 10 as of March 23, 2026, down from 7 the previous week. Our index ranks variability from a low of 1 to a high of 10, with a higher reading showing more movement in loan offers.

What does that mean for you as a borrower? When the variability index shows a moderate degree of volatility, as it does now, you might not find meaningful differences in lender offers — but you should still shop around for the best mortgage deal. Rates have trended up lately.

As of last week, the average 30-year mortgage rate in Bankrate’s weekly survey was 6.27%, up as the war in Iran roiled markets and raised oil prices. But the average rate has stayed below 6.5% since August, and housing economists expect rates to stay in this range in the coming months.

Learn more about Bankrate's Mortgage Rate Variability Index.

Ask the Experts

Experts expect rates to fall in the coming days

Mark Hamrick

Washington Bureau Chief, Senior Economic Analyst for Bankrate

"The Middle East conflict has raised inflation risk, and that’s being reflected in the yield of the 10-year Treasury." - March 4

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Ken Johnson

Walker Family Chair of Real Estate, University of Mississippi

"Geopolitical pressures are driving up both the risk premium for long-term mortgages and the yield on 10-year Treasury notes, leaving mortgage rates with nowhere to go but up." - March 4

x

Sean P. Salter, Ph.D.

Associate Professor of Finance and Dale Carnegie Trainer, Middle Tennessee State University, Murfreesboro, TN

"Although mortgage market participants have been working to drive rates down, the military action against Iran has helped push the 10-year Treasury rate higher, and I expect mortgage rates to rise as well. In my opinion, how much rates move and how long they stay elevated depends on the Trump administration’s willingness and ability to articulate a strategy and exit path from that conflict." - March 4

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Learn more: Weekly mortgage rate trend predictions

Product	Interest Rate	APR
30-Year Fixed Rate	6.50%	6.58%
20-Year Fixed Rate	6.33%	6.43%
15-Year Fixed Rate	5.83%	5.93%
10-Year Fixed Rate	5.86%	5.94%
30-Year Fixed Rate FHA	6.28%	6.34%
30-Year Fixed Rate VA	6.38%	6.42%
30-Year Fixed Rate Jumbo	6.55%	6.58%

Rates as of Saturday, April 04, 2026 at 6:30 AM

Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
- National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
- Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
- “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.

Learn more about how we collect, display and report mortgage rates.

Product	Interest Rate	APR
30-Year Fixed Rate	6.68%	6.76%
20-Year Fixed Rate	6.51%	6.62%
15-Year Fixed Rate	6.01%	6.10%
10-Year Fixed Rate	5.99%	6.06%
30-Year Fixed Rate FHA	6.67%	6.71%
30-Year Fixed Rate VA	6.50%	6.54%
30-Year Fixed Rate Jumbo	6.79%	6.84%

Rates as of Saturday, April 04, 2026 at 6:30 AM

Bankrate’s mortgage rates include national rate and APR averages; Bankrate Monitor (BRM) National Index rate averages; and “top offers”:
- National rate and APR averages: Displayed as daily and weekly averages, these rates and APRs are primarily collected from the 5 largest banks and thrifts across hundreds of markets in the U.S.
- Bankrate Monitor (BRM) National Index rate averages: Reported weekly, this long-standing survey collects rates from banks and thrifts across hundreds of markets in the U.S.
- “Top offers”: Displayed daily and weekly, these are an average of the rates listed first on our rate tables as advertised by our partners. The averages shown are based on the loan type and term selected.
You can compare national average mortgage rates to top offers to see how much you could save when shopping on Bankrate.

Learn more about how we collect, display and report mortgage rates.

Learn more: Interest rate vs. APR

How to compare mortgage rates

The rates you see advertised here might not match the rate you're offered. That’s because mortgage rates are influenced by personal factors, like your down payment and your debt. And different lenders may offer you different mortgage rates and fees based on their business needs.

That’s why it’s important to shop with multiple lenders — it can save you over $1,000 a year, according to research from Freddie Mac.

Here’s how to compare mortgage rates:

Ensure you’re comparing the same loan type. If one rate is significantly higher or lower than another, make sure it’s for the same type of product. A government-backed loan, like an FHA or VA loan, won’t have the same rate as a conventional mortgage.
Consider APR and mortgage rate. Your interest rate is one cost of borrowing money, but your APR includes that as well as other fees associated with your loan, making it a more complete picture of the actual cost. Some lenders charge lower rates on mortgages, but higher fees.
Get quotes from different types of lenders. You may find different costs from a local bank or credit union compared with a national bank or an online lender.

Learn more: How to compare mortgage offers

How your mortgage rate affects your monthly payment

Your mortgage rate impacts how much you pay month to month — sometimes by a lot. For this example, we’re using the principal and interest payment on a $400,000 house, assuming 20% down and a 30-year fixed-rate mortgage.

	5%	5.5%	6%	6.5%	7%
Monthly payment	$1,718	$1,817	$1,919	$2,023	$2,129
Cost increase vs. 5%	$0	+$99	+$201	+$305	+$411

As you can see, every increase of half a percentage point between 5% and 7% changes the monthly payment by around $100. On a yearly basis, that’s a difference of $1,200. For more expensive homes, this difference is even larger.

How your mortgage rate is determined

Your mortgage rate depends on a number of factors, including your individual credit profile and what’s happening in the broader economy. These include:

Your lender: Lenders set rates based on many factors, including their own supply and demand.
Your credit and finances: The better your credit score and the higher your income compared to your debt, the better the interest rate you’ll likely get.
Your loan size and type: The size of your loan, your down payment and the type of loan all affect your mortgage rate. For example, making a bigger down payment typically earns you a lower mortgage rate, as it reduces the lender’s risk.
Economic factors: Broadly, mortgage rates are impacted by forces like the Federal Reserve, inflation and investor appetite.
Mortgage points: Also known as discount points, these are upfront fees you can pay to reduce your interest rate. Decide whether they're worth it with our guide to mortgage points.

Learn more: How to get a mortgage

How to refinance your current mortgage

The process of refinancing your mortgage isn’t much different from the process of applying for a mortgage, though it typically costs less and takes less time. Borrowers choose to refinance for many reasons: a lower rate, cashing out equity, removing a co-borrower and more. When you're ready to refi, compare refinance rates and do the math with our refinance calculator.

Learn more: When to refinance

Next steps to getting a mortgage

Before you start applying for a mortgage, here are some mortgage resources to prepare you for the process:

How to improve your credit score to get a mortgage

The higher your score, the better your approval chances, and the lower the interest rate.

How to save for a down payment

Saving the big chunk of cash you'll need upfront can be tough. These tactics help.

How to choose a mortgage lender

Getting a good loan starts with choosing the right lender.

Income requirements to qualify for a mortgage

Your income helps determine how much you can borrow.

FAQ

A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home. The collateral for the mortgage is the home itself. That means if the borrower doesn’t make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money. A mortgage loan is typically a long-term debt taken out for 30, 20 or 15 years. Over this time (known as the loan’s “term”), you’ll repay both the amount you borrowed as well as the interest charged for the loan.

Learn more: What is a mortgage?
A mortgage rate lock guarantees — with a few exceptions — that the interest rate offered to you will remain available for a set period of time. With a lock, you won’t have to worry if market rates go up between the time you find a home, submit an offer and close. Most lenders offer a 30- to 45-day rate lock free of charge. Often, you’ll need to pay a fee to extend the lock period. Some lenders also offer a “float down” option, which allows you to lower your locked rate if prevailing rates fall — though you’ll likely have to pay a fee for this perk, too.

Learn more: What is a mortgage rate lock?
The closing costs on a mortgage encompass all of the fees associated with the loan, including lender fees, like the origination fee — which typically equals 1% of the loan principal — and optional points. Closing costs also include third-party fees, like the cost of an appraisal and title insurance. All together, these usually run anywhere from 2% to 5% of the amount you’re borrowing, above and beyond your down payment.

Learn more: Mortgage closing costs
Depending on your needs, the best mortgage lenders are often the ones that offer the most competitive rates and fees, stellar customer service and convenience.

Learn more: Best mortgage lenders in 2026