30 Year Interest Rates Today, November 12, 2020 | Rates slide

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30-year fixed mortgage rates

The average rate for a 30-year fixed-rate mortgage is 3.02 percent, a decrease of 5 basis points over the last seven days. This time last month, the average rate on a 30-year mortgage loan was the same, at 3.02 percent.

At today’s interest rate, you’ll pay principal and interest of $422.68 for every $100,000 you borrow. Compared to last Thursday, that’s $2.71 lower.

Use Bankrate’s mortgage rate calculator to approximate your monthly payments and see how much you’ll save by adding extra payments. The tool will also help you calculate how much interest you’ll pay over the life of your loan.

30-year fixed refinance rates

Today’s average refinance rate for a 30-year fixed-rate mortgage is 3.16 percent, an increase of 10 basis points over the previous seven days. Last month on the 12th, the average rate on a 30-year mortgage was 3.13 percent.

At the current average rate, you’ll pay P&I of $430.28 for every $100,000 you borrow. Compared to last week, that’s $5.43 higher. Compared to a month ago, that’s $1.63 higher.

Pros and cons of the 30-year mortgage

The 30-year mortgage is the most popular option for borrowers. It has a number of advantages. Among them:

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 a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can 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. With lower payments, you can qualify for a larger loan amount and a more expensive home.
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 fixed-rate mortgage has some downsides:

More total interest paid. Stretching out repayment to a 30-year term means you pay more overall in interest than you would 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. The benefit of a mortgage rate lock is that it 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, 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 bets.

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 the latest marketplace average rates for a range of purchase and refinance loans.

Searching for the right mortgage lender? Check out Bankrate’s lender reviews here.

Other daily news articles:
Mortgage rates today
Refi rates today
Shopping for the right mortgage lender?
GoodMortgage Review
PHH Mortgage Review
Cherry Creek Mortgage Review
See all Bankrate’s lender reviews here
Methodology

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”.

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