Current 30 Year Mortgage Rates, February 19, 2021: Rates higher

30-year fixed mortgage rates

The average rate for a 30-year fixed-rate mortgage is 2.99 percent, climbing 16 basis points over the past week. One month ago, the average rate on a 30-year mortgage was more favorable, at 2.88 percent. Today’s 30-year rate is 114 basis points below the average annual rate of 2019, making it a great time to get a fixed-rate mortgage.

At the current average interest rate, you’ll pay principal and interest of $421.06 for every $100,000 you borrow. That’s up $8.57 from last Friday. Compared to a month ago, that’s $5.90 higher.

Use Bankrate’s mortgage rate calculator to estimate 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 fixed refi rates

The average rate to refinance a 30-year fixed-rate mortgage is 3.01 percent, up 15 basis points compared to a week ago. A month ago, the average rate on a 30-year mortgage was 2.90 percent.

At the current average rate, you’ll pay P&I of $422.14 for every $100k you borrow. Compared to last week, that’s $8.05 higher. Compared to a month ago, that’s $5.91 higher.

Bankrate average annual 30-year fixed mortgage rate, 2010-2019

Pros and cons of a 30-year mortgage term

The popular 30-year mortgage has a number of advantages, including:

• Lower monthly payment. Compared to a shorter term, such as 15 years, the 30-year mortgage offers lower, more affordable payments spread over time.
• Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: 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 building an emergency fund, contributing to retirement or college tuition, or saving for 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 mortgage with a smaller monthly payment can allow you to save more for retirement.

The 30-year mortgage also has some downsides:

• More total interest paid. Stretching out repayment to a 30-year term means you pay more overall in interest than you would with a shorter-term loan.
• Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they’re taking on the risk of not being repaid for a longer time span.
• Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
• Buying a pricier house than you should. Just because you might be able to afford more house with a 30-year loan doesn’t mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate’s home affordability calculator to determine how much house you can afford.

30-year fixed mortgage vs. 15-year fixed mortgage

The most significant drawback of a 30-year fixed-rate mortgage is the amount of interest you’ll pay. Mortgage rates are typically higher for 30-year loans than 15-year loans. Although your monthly payments will be lower for a 30-year loan, you’ll pay much more interest over the life of the loan.

For example, with a 15-year fixed loan, you’ll cut your repayment time in half and save significantly on interest in the process. Compare how much interest you’ll pay on 15-year and 30-year loans with Bankrate’s 15-year or 30-year fixed mortgage calculator.

Shopping for the right mortgage lender?

• First Rate Mortgage Review
• PHH Mortgage Review
• Philadelphia Mortgage Advisors Mortgage Review
• See all Bankrate’s mortgage lender reviews

See rates for a variety of loan types

Loan Type	Mortgage Rates for Purchase	Mortgage Rates for Refinancing
The chart above links out to loan-specific content to help our readers learn more about rates by loan type.
30-Year Loan	30-Year Interest Rates	30-Year Refinance Rates
20-Year Loan	20-Year Mortgage Interest Rates	20-Year Refinance Interest Rates
15-Year Loan	15-Year Mortgage Interest Rates	15-Year Refinance Rates
10-Year Loan	10-Year Mortgage Rates	10-Year Mortgage Refinance Rates
FHA Loan	Current FHA Mortgage Rates	FHA Mortgage Refi Rates
VA Loan	VA Loan Interest Rates	Current VA Refinance Rates
ARM Loan	Adjustable Rate Mortgage Rates	ARM Refinance Rates
Jumbo Loan	Jumbo Loan Interest Rates	Jumbo Refi Interest Rates

Methodology

The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s on-site rate averages”.