Mortgage rates for April 8, 2021: Rates cool off – CNET

A variety of key mortgage rates trailed off today. The average interest rates for both 15-year fixed and 30-year fixed mortgages were slashed. At the same time, average rates for 5/1 adjustable-rate mortgages also decreased. Although mortgage rates are dynamic, they are at a historic low. For those looking to lock in a fixed rate, now is an excellent time to finance a house. Before you purchase a house, remember to consider your personal needs and financial situation, and speak with different lenders to find the right one for you.

Find current mortgage rates for today

30-year fixed-rate mortgages

The 30-year fixed-mortgage rate average is 3.21%, which is a decline of 6 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most frequently used loan term. A 30-year fixed mortgage will typically have a higher interest rate than a 15-year fixed rate mortgage -- but also a lower monthly payment. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you're looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.48%, which is a decrease of 3 basis points compared to a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. However, if you're able to afford the monthly payments, there are several benefits to a 15-year loan. You’ll most likely get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 3.22%, a decrease of 7 basis points compared to last week. With an ARM mortgage, you'll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But shifts in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage could make sense for you. But if that's not the case, you could be on the hook for a much higher interest rate if the market rates shift.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:

Current average mortgage interest rates

Loan type	Interest rate	A week ago	Change
30-year fixed rate	3.21%	3.27%	-0.06
15-year fixed rate	2.48%	2.51%	-0.03
30-year jumbo mortgage rate	3.07%	3.08%	-0.01
30-year mortgage refinance rate	3.30%	3.34%	-0.04

Updated on April 8, 2021.

How to find the best mortgage rates

When you are ready to apply for a loan, you can reach out to a local mortgage broker or search online. In order to find the best home mortgage, you'll need to take into account your goals and overall financial situation. Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a larger down payment, a lower DTI and a lower LTV to get a lower interest rate. The interest rate isn't the only factor that affects the cost of your home — be sure to also consider additional factors such as fees, closing costs, taxes and discount points. Be sure to speak with multiple lenders -- such as local and national banks, credit unions and online lenders -- and comparison shop to find the best mortgage loan for you.

What is a good loan term?

One important thing you should consider when choosing a mortgage is the loan term, or payment schedule. The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are stable for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (usually five, seven or 10 years). After that, the rate changes annually based on the market interest rate. When choosing between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to stay in your home. If you plan on staying long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer greater stability over time in comparison to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. However you could get a better deal with an adjustable-rate mortgage if you only intend to keep your home for a few years. The “best” loan term all all depends on your situation and goals, so make sure to think about what’s important to you when choosing a mortgage.

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