30-year fixed mortgage interest ratesThe average rate for a 30-year fixed-rate mortgage is 3.03 percent, increasing 1 basis point over the past week. This time last month, the average rate on a 30-year mortgage was more favorable, at 3.01 percent.At the current average interest rate, you’ll pay principal and interest of $423.22 for every $100k you borrow. That’s up $0.54 from last Thursday. Compared to a month ago, that’s $1.08 higher.See today’s daily mortgage rates article to understand how other mortgage purchase rates moved.30-year mortgage refinance ratesToday’s average 30-year fixed refinance rate is 3.20 percent, an increase of 7 basis points over the past seven days. Last month on the 22nd, the average rate on a 30-year mortgage was 2.97 percent.At the current average rate, you’ll pay principal and interest of $432.47 for every $100,000 you borrow. Compared to last week, that’s $3.82 higher. Compared to a month ago, that’s $12.48 higher.Pros and cons of a 30-year fixed mortgageThe 30-year mortgage is the most popular option for homeowners, and this type of loan has a number of advantages, including:
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 the 30-year, you lock in a consistent principal and interest payment. That predictability lets you plan your housing expenses for the long term. Remember: 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. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans 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 payoff of the loan amount.
Buying a more expensive 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.
Mortgage lock recommendations
A rate lock guarantees a lender will honor a specified interest rate at a specific cost for a set period. A mortgage rate lock protects you from market fluctuations. It also puts pressure on borrowers to make sure they close on homes before the rate-lock period expires. For example, if your lender locks in your rate at 3.75 percent for 45 days and rates jump up to 4 percent within that period, you’ll still get your loan at the lesser rate.
If they choose not to lock in your rate, you’ll have a “floating” rate. That’s not a bad strategy when interest rates are generally falling, but it could be costly in a rising rate environment. For risk-averse people who are looking for a mortgage, a rate-lock is a must. It’s a good idea to ask for a 45-day lock at a minimum; 60 days is even better.
Where rates are headed
Every week, Bankrate’s editorial team asks a panel of mortgage experts where they think mortgage rates will go over the next week. See Bankrate’s Rate Trends Page for weekly forecasts.
To provide the freshest rates, lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a range of purchase and refinance loans.
Searching for a mortgage lender? See Bankrate’s mortgage lender reviews.
Read about today’s rates for a variety of loan terms:
Mortgage rates today
Current mortgage refinance rates
Shopping for the right lender?
Navy Federal Credit Union Mortgage Review
USAA Mortgage Review
Check out all reviews of top lenders
Compare mortgage rates for various loan types
The index above links out to loan-specific content to help our readers learn more about rates by product type.
30-Year Interest Rates
Current 30 Year Refinance Rates
Current 20 Year Mortgage Rates
20-Year Refinance Interest Rates
15 Year Fixed Mortgage Rates
15-Year Mortgage Refinance Rates
10-Year Fixed Mortgage Rates
10-Year Refi Interest Rates
FHA Mortgage Loan Rates
FHA Refinance Interest Rates
VA Mortgage Interest Rates
VA Mortgage Refinance Rates
Adjustable Rate Mortgage Rates
ARM Refi Mortage Rates
Jumbo Mortgage Rates
Jumbo Refi Interest Rates
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”.