The mortgage rates below are sample rates based on assumptions. Use our calculator to see today's estimated rates for mortgage and refinance loans based on your specific needs. Typically, you can only lower your mortgage rate if it drops by a certain percentage, and there are likely to be charges associated with this option. First, choose between buy rates or refinance rates by alternating between the two options at the top of the table.
If you don't set your rate, rising interest rates could force you to make a higher down payment or pay points on your closing agreement to lower interest rate costs. You may decide that getting the lower rate is the most important factor for you, while others might opt for a slightly higher rate because they can request it in person, for example. Exactly how much lower your interest rate will be and how much higher your monthly payment will be depends largely on the specific loan term and the interest rate type you choose. With rising rates, you can lower your costs with a loan with no closing cost and prepare to take advantage of lower rates in the future.
Once you decide what type of mortgage fits your needs, you can start comparing current mortgage options. Even if you stay in the same home for the rest of your life, you can refinance your mortgage to take advantage of better terms or rates. A mortgage discount point typically costs 1% of your loan amount and could reduce your interest rate by up to 0.25 percentage points. That's why a mortgage APR is usually higher than the interest rate, and that's why it's such an important figure when comparing loan offers.
When comparing mortgage offers, be sure to ask if the interest rate includes discount points. Interest rates help determine your monthly mortgage payment, as well as the total amount of interest you'll pay during the life of the loan. If you can save at least 20% for a down payment, you can skip paying private mortgage insurance and qualify for better interest rates. Mortgage rates have risen steadily since the beginning of March, reaching a 12-year high of 5.11% in mid-April.
When finding current mortgage rates, the first step is to decide what type of mortgage best fits your goals and budget.