30-Year Mortgage and Refinance Rates for February 23, 2021: Rates move upward

30 year mortgage blog

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30-year fixed mortgage rates

The average rate for a 30-year fixed-rate mortgage is 3.09 percent, an increase of 21 basis points over the past seven days. A month ago, the average rate on a 30-year loan was more favorable, at 2.86 percent. The current rate is 104 basis points below the average annual rate of 2019, making it a great time to get a fixed-rate mortgage.

At today’s average interest rate, you’ll pay principal and interest of $426.47 for every $100k you borrow. Compared to a week ago, that’s $11.31 higher. Compared to a month ago, that’s $12.38 higher.

Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.

30-year fixed refinance rates

Today’s average 30-year fixed refinance rate is 3.13 percent, increasing 21 basis points over the previous seven days. A month ago, the average rate on a 30-year mortgage was 2.88 percent.

At the current average rate, you’ll pay P&I of $428.65 for every $100,000 you borrow. Compared to last week, that’s $11.35 higher. Compared to a month ago, that’s $13.49 higher.

Bankrate average annual 30-year fixed mortgage rate, 2015-2019

Year Average 30-Year Fixed Annual Rate
2015 3.99%
2016 3.79%
2017 4.14%
2018 4.70%
2019 4.13%

Pros and cons of a 30-year fixed mortgage

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

  • 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. 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 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.

As with any financial product, the 30-year mortgage does have some negatives, including: