30-year fixed mortgage ratesThe average rate for a 30-year fixed-rate mortgage is 3.06 percent, unaltered over the last seven days. A month ago, the average interest rate on a 30-year mortgage loan was more favorable, at 3.03 percent.At the current average rate, you’ll pay principal and interest of $424.85 for every $100,000 you borrow. Compared to a month ago, that’s $1.63 higher.Check out today’s daily mortgage rates article to understand how other purchase loan rates moved.30-year fixed refi ratesToday’s average 30-year fixed refinance rate is 3.07 percent, down 5 basis points over the previous seven days. A month ago, the average rate on a 30-year mortgage was 3.18 percent.At the current average rate, you’ll pay principal and interest of about $425 for every $100,000 you borrow. Compared to last week, that’s $2.71 lower. Pros and cons of a 30-year mortgageThe 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 mortgage, such as 15 years, the 30-year mortgage offers more affordable monthly 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. 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 lower monthly cost 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 payoff 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.
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. A rate lock is a must for risk-averse people who are seeking a mortgage. It’s a good idea to ask for a 45-day lock at a minimum; 60 days is even better.
Where rates are headed
Once a week, our editorial team asks a group of mortgage experts where they think mortgage rates will go over the next week. See Bankrate’s Mortgage Rate Trend Index for weekly forecasts.
To provide the freshest rates, mortgage 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..
Searching for the right lender? Check out Bankrate’s mortgage lender reviews.
Read about today’s rates for a variety of loan terms:
Today’s mortgage rates
Mortgage refinance rates today
Searching for the right lender?
Mr. Cooper Mortgage Review
Allied Mortgage Group Mortgage Review
Learn more about specific loan type rates
The table above links out to loan-specific content to help our readers learn more about rates by product type.
30-Year Mortgage Rates
Current 30 Year Refinance Rates
20-Year Mortgage Interest Rates
20-Year Mortgage Refinance Rates
Today’s 15-Year Mortgage Rates
15-Year Mortgage Refinance Rates
10-Year Mortgage Interest Rates
Current 10-Year Refinance Rates
FHA Mortgage Loan Rates
FHA Refinance Rates
VA Loan Interest Rates
VA Refinance Loan Rates
ARM Loan Rates
ARM Refinance Rates
Jumbo Mortgage Rates
Current Jumbo Refinance 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”.