Mortgage rates can be a confusing topic for home shoppers. They vary from lender to lender, depending on a range of factors, including credit scores, loan terms, interest rate types (fixed or adjustable), down payment size and home location.
Using our mortgage calculator, you can see what type of home loan is best for your situation. Enter your ZIP code and other details, such as your approximate credit score, down payment amount, loan term and the amount of money you want to borrow, and well provide you with personalized rates that better match your needs.
Your mortgage rates are the percentage of the total cost of your home loan that you pay back each month. This includes the original amount of money you borrowed plus any interest that accumulates. The longer the term, or length, of your mortgage, the less youll owe each month.
You can compare mortgage rates from multiple lenders, but you wont get a true reflection of what you could receive until you apply for prequalification and receive your Loan Estimate. This document contains all of the details about your mortgage, including the interest rate, annual percentage rate (APR), upfront costs and any discount points you may qualify for.
Mortgage rates can change on a daily basis, so its important to stay on top of them as you shop for a mortgage. You can find daily mortgage rates by visiting NerdWallets Mortgage Rate Tracker, which offers a range of national and local mortgage rates.
Fixed-rate mortgages are the most common type of loan, and they typically offer lower monthly payments than adjustable-rate loans. Theyre not tied to the Federal Reserves benchmark rate, which can influence mortgage rates.
There are two main types of fixed-rate mortgages: 15-year and 30-year. The 15-year mortgage is an adjustable-rate mortgage (ARM), which changes every year, and the 30-year mortgage is a fixed-rate mortgage, which stays the same throughout the life of the loan.
When comparing mortgage rates, be sure to shop around for the lowest rate. There are many ways to get a lower mortgage rate, from shopping online to working with a lender that offers a higher down payment.
Your mortgage rates are based on a number of factors. The most important ones are economic forces, such as the Federal Reserves federal funds rate and the 10-year Treasury bond yield.
Those are set by economic forces, but they can also move in response to the economy, consumer spending and other factors that impact the real estate market. If the Fed raises its fed funds rate, mortgage rates tend to increase; if it lowers, mortgage rates usually fall.
The 30-year fixed-rate mortgage is currently 6.13%, down 0.02 percentage points from last week. The 15-year fixed-rate mortgage is 5.17%, down 0.11 percentage points from a week ago.
While the current mortgage rate environment is more challenging than it has been in the past 20 years, its still possible to find a good deal for your home. By taking time to shop around and compare offers, you can save thousands of dollars on your mortgage over the long run.