Compare current mortgage rates for today

What are today's mortgage rates?

According to Bankrate’s latest survey of the nation’s largest mortgage lenders: For today, Thursday, January 28, 2021, the benchmark 30-year fixed mortgage rate is 2.860% with an APR of 3.160%. The average 15-year fixed mortgage rate is 2.360% with an APR of 2.690%. The 5/1 adjustable-rate mortgage (ARM) rate is 2.990% with an APR of 4.000%. Check out our mortgage calculator for rates customized to your specific financial needs.

Will mortgage rates keep dropping?

In 2021, mortgage rates are expected to stop dropping. Rather, 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.

Sources:

• National Association of Real Estate Editors
• Freddie Mac Federal Home Loan Mortgage Corporation

Potential mortgage & housing trends for 2021

1. Mortgage rates will increase in 2021, after hitting record lows in 2020.
2. Home prices will continue to rise, but at a lower pace than in 2020.
3. Americans will move out of cities and into suburbs.
4. Foreclosure numbers will increase in 2021, however most struggling homeowners will be able to sell their homes to avoid foreclosure.
5. The VA loan market will continue its newfound popularity.

For more information on 2021 trends for mortgages & homeowners, read Bankrate's 5 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

Current Conventional Fixed-Rate Mortgage Rates

• Purchase
• Refinance

Product	Interest Rate	APR
30-Year Fixed	2.860%	3.160%
20-Year Fixed	2.690%	3.020%
15-Year Fixed	2.360%	2.690%
10-Year Fixed	2.330%	2.590%

Product	Interest Rate	APR
30-Year Fixed	2.900%	3.120%
20-Year Fixed	2.800%	3.070%
15-Year Fixed	2.410%	2.640%
10-Year Fixed	2.420%	2.630%

Rates as of at 6:30 AM

Current Adjustable-Rate Mortgage Rates

• Purchase
• Refinance

Product	Interest Rate	APR
10/1 ARM	2.980%	3.900%
7/1 ARM	2.880%	3.870%
5/1 ARM	2.990%	4.000%

Product	Interest Rate	APR
10/1 ARM	3.150%	3.980%
7/1 ARM	2.940%	3.960%
5/1 ARM	3.060%	4.060%

Rates as of Thursday, January 28, 2021 at 6:30 AM

Current Jumbo Mortgage Rates

• Purchase
• Refinance

Product	Interest Rate	APR
30-Year Fixed-Jumbo	2.890%	3.000%
15-Year Fixed- Jumbo	2.370%	2.440%

Product	Interest Rate	APR
30-Year Fixed- Jumbo	2.920%	2.990%
15-Year Fixed- Jumbo	2.420%	2.480%

Rates as of Thursday, January 28, 2021 at 6:30 AM

Current Government Loan Rates

• Purchase
• Refinance

Product	Interest Rate	APR
30-Year Fixed- VA	3.100%	3.380%
30-Year Fixed- FHA	2.620%	3.490%

Product	Interest Rate	APR
30-Year Fixed- VA	3.000%	3.260%
30-Year Fixed- FHA	2.540%	3.410%

Rates as of Thursday, January 28, 2021 at 6:30 AM

How Bankrate mortgage rates are calculated

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 and refinance loans. 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 rate averages.

Why trust Bankrate?

Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting mortgage rate information from the nation’s largest lenders for more than 30 years. Hundreds of top publications, such as The New York Times, Wall Street Journal, CNBC and others, depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.

What to know before getting a mortgage

By Jeff Ostrowski

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

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 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.

There are many types of mortgages, from government-backed loans designed for people who meet certain criteria like veterans (VA loans) or first-time homebuyers (FHA loans) to privately-owned loans.

Repayment options also vary. The most common mortgage requires the borrower to pay it back over 30 years, but there are also 20- and 15-year mortgages.

Mortgages come with interest, which can be charged at either a fixed or adjustable rate. Fixed-rate mortgages lock in the interest rate you qualify for so it never changes over the life of your loan. Adjustable-rate mortgages start with one rate but may move up or down at set intervals as interest rates in the market change. So in a rising-rate environment, your interest rate will also rise.

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.

Here’s what may be included in the APR:

The APR first and foremost includes the interest rate. That’s pretty straightforward and is simply the percentage rate paid over the life of the loan. With a fixed-rate loan this won’t vary, but the calculation is different for a variable-rate mortgage because the rate can change over the loan period.

Another key factor in the APR is 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. If the prevailing 30-year year interest rate is 3 percent, then the loan will carry a 2.75 percent rate because of the point purchase.

Mortgage broker fees are included in the APR. 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.

Mortgage insurance is part of the APR, if the borrower opts for this coverage. This policy will pay off the outstanding balance if the borrower or borrowers die before the mortgage is repaid.

Most closing costs, including loan origination fees, are reflected in the APR. Closing costs typically range from about 2-5 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 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.&nbsp

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.&nbsp

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.&nbsp

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 2020, the maximum conforming loan limit for single-family homes in most of the U.S. is $510,400, 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?

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.

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?

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 (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 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.

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 rise 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 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 rating, the size of the loan, the location of the house and the term of the 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.

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 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. Keep in mind that closing times on mortgages have lengthened this year due to the pandemic and a flood of applications prompted by record-low interest rates.

The average time it took to close on a mortgage rose to 55 days in November, according to Ellie Mae's Origination Insight Report. Remember this when lenders provide rate lock information. 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.

Mortgage News

Bankrate’s Housing Hardship Index: A look at which states are struggling

The coronavirus contagion continues to take a toll on the economy — but the effects vary widely by state and region.

In September 2020, the tourism-heavy economies of Hawaii and Nevada suffered the most from COVID-19, according to the Bankrate Housing Hardship Index, while the economies of Louisiana and Mississippi, with high numbers of homeowners struggling to pay their mortgages, moved up the list of hardest-hit states. Some states — especially those in the Rockies and upper Great Plains — have weathered the coronavirus storm well.

Unemployment in a handful of struggling states also lingered in the double digits in September. Our metric sums mortgage delinquencies and unemployment to show which states are enduring the most extreme slowdowns during the pandemic. For now, foreclosures are at historically low levels, but housing economists expect defaults in 2021.

5 state housing markets hit hardest by coronavirus

The fallout for real estate and labor markets is severe in some corners of the country. These five states fared the worst in September 2020:

1. Hawaii – A tourism-dependent state, Hawaii’s economy has recovered in fits and starts since April. Its 15.1 percent unemployment in September was the worst in the nation, and a reversal from August’s 12.5 percent. Meanwhile, Hawaii’s mortgage delinquency rate fell to 7.9 percent, compared with 8.3 percent in August. Hawaii’s overall Housing Hardship Index for September was 23.
2. Nevada – As casinos reopened, Nevada’s jobless rate fell sharply. After topping 28 percent in April, Nevada unemployment had fallen to 12.6 percent in September. The Silver State’s mortgage delinquency rate fell to 8.3 percent in September, down from 8.6 percent in August and a high of 10 percent in May, according to Black Knight data. Nevada’s overall reading for August was 20.9 — a dramatic improvement from April, when Nevada’s nation-leading Housing Hardship Index topped 36.
3. Louisiana – Louisiana’s economy suffers from the combination of a high delinquency rate and elevated jobless rates. The delinquency rate was 10.6 percent in September, while unemployment stood at 8.1 percent.
4. Mississippi – Mississippi had the nation’s highest mortgage delinquency rate in September, at 11.2 percent. Unemployment was 7.1 percent.
5. Rhode Island – The unemployment rate in Rhode Island was 10.5 percent in September, down from 12.8 percent in August, and the mortgage delinquency rate was 7.2 percent, down from 7.5 percent the previous month.

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.

Learn more about refinance rates.

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