30-Year Interest Rates for January 12, 2021 | Rates go up

30 year mortgage blog

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30-year mortgage interest rates

The average rate for a 30-year fixed-rate mortgage is 2.93 percent, up 8 basis points over the previous week. One month ago, the average rate on a 30-year mortgage was lower, at 2.85 percent.

At today’s average interest rate, you’ll pay principal and interest of $417.84 for every $100k you borrow. That’s up $4.28 from last Tuesday. Compared to a month ago, that’s $4.28 higher.

Use Bankrate’s mortgage rate calculator to calculate your monthly payments and see how much you’ll save by adding extra payments. Our tool will also help you calculate how much interest you’ll fork up over the life of your loan.

30-year refinance rates

The average rate to refinance a 30-year fixed-rate mortgage is 2.98 percent, rising 9 basis points compared to a week ago. A month ago, the average rate on a 30-year mortgage was 2.91 percent.

At the current average rate, you’ll pay P&I of $420.53 for every $100k you borrow. Compared to last week, that’s $4.84 higher. Compared to a month ago, that’s $3.76 higher.

Average annual 30 year fixed mortgage rate, 2012-2019

Year Average 30-Year Fixed Annual Rate
2012 3.88%
2013 4.16%
2014 4.31%
2015 3.99%
2016 3.79%
2017 4.14%
2018 4.70%
2019 4.13%

Pros and cons of a 30-year mortgage

The 30-year mortgage is the most popular home loan, and it has a number of advantages. Among them:

  • Lower monthly payment. The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
  • Stability. With the 30-year, you lock in a consistent principal and interest payment. That predictability lets you plan your housing expenses for the long term. Keep in mind: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power. Because you have lower payments, you can qualify for a bigger loan and a more expensive house.
  • Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like saving for emergencies, retirement, college tuition or home repairs and maintenance.
  • Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed-rate mortgage with a lower monthly payment can allow you to save more for retirement.

As with any financial product, the 30-year mortgage has some downsides, including: