Today’s mortgage and refinance rates, September 13, 2021: Rates down

Daily Mortgage blog

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National mortgage rates sunk across the board from a week ago, according to data compiled by Bankrate. Rates for 30-year fixed, 15-year fixed, 5/1 ARMs and jumbo loans all dropped.

Average home loan rates
Product Rate Last week Change
30-year fixed 3.01% 3.04% -0.03
15-year fixed 2.31% 2.34% -0.03
5/1 ARM 2.78% 2.80% -0.02
30-year fixed jumbo 3.02% 3.06% -0.04

Rates as of September 13, 2021.

The rates listed here are averages based on the assumptions here. Actual rates available across the site may vary. This story has been reviewed by Bill McGuire. All rate data accurate as of Monday, September 13th, 2021 at 7:30am.

>>See historical mortgage rate trends, from the 70s to today

You can save thousands of dollars over the life of your mortgage by getting multiple offers. “It is so important to shop around,” says Greg McBride, CFA, Bankrate chief financial analyst. “Not everyone offers the same price, and some lenders may have motivation to be very competitive on price.”

Mortgage rates

30-year fixed-rate mortgage moves lower, -0.03%

The average 30-year fixed-mortgage rate is 3.01 percent, down 3 basis points since the same time last week. This time a month ago, the average rate on a 30-year fixed mortgage was higher, at 3.05 percent.

At the current average rate, you’ll pay $421.60 per month in principal and interest for every $100,000 you borrow.

30-year mortgage vs. 15-year mortgage

Most mortgage lenders defer to the 30-year, fixed-rate mortgage as the go-to for most borrowers buying a home as it allows the borrower to disperse loan payments out over 30 years, keeping their monthly payment lower.

With a 15-year mortgage, however, borrowers can pay off their loan in half the time — if they’re able and willing to enlarge the amount of their monthly loan payment. The primary difference between qualifying for a 15-year versus a 30-year mortgage is that you’ll need a higher income and lower debt-to-income ratio to obtain a 15-year mortgage because the monthly payments are loftier.

15-year fixed mortgage falls,-0.03%

The average rate for a 15-year fixed mortgage is 2.31 percent, down 3 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost roughly $384 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

5/1 ARM rate moves lower, -0.02%

The average rate on a 5/1 ARM is 2.78 percent, falling 2 basis points from a week ago.

Adjustable-rate mortgages, or ARMs, are mortgage loans that come with a floating interest rate. To put it another way, the interest rate can change periodically throughout the life of the loan, unlike fixed-rate mortgages. These loan types are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 2.78 percent would cost about $409 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.

Jumbo mortgage trends down, -0.04%

The average jumbo mortgage rate is 3.02 percent, down 4 basis points over the last week. Last month on the 13th, the average rate was greater than 3.02, at 3.07 percent.

At the average rate today for a jumbo loan, you’ll pay $421.60 per month in principal and interest for every $100,000 you borrow.

Rate review: How mortgage rates have moved

  • 30-year fixed mortgage rate: 3.01%, down from 3.04% last week, -0.03
  • 15-year fixed mortgage rate: 2.31%, down from 2.34% last week, -0.03
  • 5/1 ARM mortgage rate: 2.78%, down from 2.80% last week, -0.02
  • Jumbo mortgage rate: 3.02%, down from 3.06% last week, -0.04

Mortgage refinance rates

30-year mortgage refinance rate moves lower, –0.02%

The average 30-year fixed-refinance rate is 2.99 percent, down 2 basis points over the last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.04 percent.

At the current average rate, you’ll pay $415.16 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $6.44 lower.

6 steps to getting the best mortgage rate

  1. Improve your credit score
  2. Build a record of employment
  3. Save up for a down payment
  4. Go for a 15-year fixed-rate mortgage
  5. Shop among multiple lenders
  6. Lock in your rate

Read more about how these steps can secure you a lower rate.

Learn more:

Today’s featured lenders, September 13, 2021