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

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

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:

• More total interest paid. A 30-year term means you’ll pay more overall in interest compared with what you’d pay with a shorter-term loan.
• Higher mortgage rates. Lenders charge higher interest rates for 30-year mortgages compared to 15-year loans. That’s 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 retirement of the loan amount.
• Buying more 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 mortgage, you’ll slash 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.

Where rates are headed

Once a week, Bankrate asks a panel of mortgage experts where they think mortgage rates will go over the next week. See Bankrate’s Mortgage Rate Trend Index for weekly bets.

In order to provide the latest rates, lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see our latest marketplace average rates and an up to date analysis on current interest rates..

Shopping for the right mortgage lender? Check out reviews of lenders nationwide.

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• Guild Mortgage Review
• Caliber Home Loans Mortgage Review
• Philadelphia Mortgage Advisors Mortgage Review

Check rates for specific loan types

Product	Purchase Rates	Refinance Rates
The index above links out to loan-specific content to help you learn more about rates by product type.
30-Year Loan	30-Year Interest Rates	30-Year Refinance Rates
20-Year Loan	Current 20 Year Mortgage Rates	20-Year Refi Rates
15-Year Loan	15 Year Fixed Mortgage Rates	15-Year Refinance Rates
10-Year Loan	10-Year Fixed Mortgage Rates	Current 10-Year Refinance Rates
FHA Loan	FHA Loan Interest Rates	FHA Refinance Rates
VA Loan	VA Mortgage Interest Rates	VA Refi Interest Rates
ARM Loan	ARM Mortgage Rates	ARM Refinance Interest Rates
Jumbo Loan	Jumbo Mortgage Rates	Jumbo Loan Refinance 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”.