Current mortgage rate for March 3, 2021: Rates remain unchangedMarch 3, 2021
Some principal mortgage rates didn’t move today. Average 15-year fixed mortgage rates and average 30-year fixed mortgage rates were both flat. At the same time, average rates for 5/1 adjustable-rate mortgages tumbled. Although mortgage rates fluctuate, they are quite low right now. If you plan to buy a home, now might be an optimal time to get a fixed rate. Before you buy a house, remember to take into account your personal needs and financial situation, and compare offers from different lenders to find the best one for you.
Check out mortgage rates that meet your distinct needs
30-year fixed-rate mortgages
The average 30-year fixed mortgage interest rate is 3.13%, which is the same as seven days ago. (A basis point is equivalent to 0.01%.) 30-year fixed mortgages are the most frequently used loan terms. A 30-year fixed mortgage will typically have a greater interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.
15-year fixed-rate mortgages
The average rate for a 15-year, fixed mortgage is 2.49%, which is the same rate compared to a week ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. You’ll typically get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.
5/1 adjustable-rate mortgages
A 5/1 ARM has an average rate of 3.14%, a slide of 3 basis points from seven days ago. You’ll typically get a lower interest rate (compared to a 30-year fixed mortgage) with a 5/1 adjustable-rate mortgage in the first five years of the mortgage. But since the rate changes with the market rate, you might end up paying more after that time, as described in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage might make sense for you. But if that’s not the case, you might be on the hook for a much higher interest rate if the market rates shift.
Mortgage rate trends
We use rates collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:
Average mortgage interest rates
|30-year jumbo mortgage rate||3.00%||2.96%||+0.04|
|30-year mortgage refinance rate||3.20%||3.16%||+0.04|
Rates as of March 3, 2021.
How to find the best mortgage rates
You can get a personalized mortgage rate by connecting with your local mortgage broker or using an online calculator. When looking into home mortgage rates, consider your goals and current financial situation. Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate. Aside from the mortgage interest rate, additional costs such as closing costs, fees, discount points and taxes might also affect the cost of your home. Be sure to speak with multiple lenders — including local and national banks, credit unions or online lenders — and comparison shop to find the best loan for you.
What’s the best loan term?
When picking a mortgage, it’s important to consider the loan term, or payment schedule. The loan terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are the same for the life of the loan. For adjustable-rate mortgages, interest rates are the same for a certain number of years (commonly five, seven or 10 years), then the rate adjusts annually based on the current interest rate in the market.
One thing to take into consideration when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your house. If you who plan on living long-term in your new house, fixed-rate mortgages may be the better option. While adjustable-rate mortgages may offer lower interest rates upfront, fixed-rate mortgages are more stable in the long term. If you don’t plan to keep your new home for more than three to 10 years, though, an adjustable-rate mortgage may give you a better deal. There is no “best” loan term as an overarching rule; it all depends on your goals and your current financial situation. It’s important to do your research and understand what’s most important to you when choosing a mortgage.