Today's mortgage rates Nov. 3, 2021: Key rates continue to fall

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A handful of closely followed mortgage rates fell today: 15- and 30-year fixed mortgage rates decreased together with 5/1 adjustable-rate mortgages. Although mortgage rates are dynamic, they are quite low right now. Because of this, right now is an ideal time for prospective homebuyers to secure a fixed rate. Before you buy a home, remember to think about your personal needs and financial situation, and shop around for multiple lenders to find the best one for you.

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30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 3.14%, which is a decline of 5 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate. 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.

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15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.44%, which is a decrease of 2 basis points from the same time last week. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a bigger monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

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5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 3.13%, a fall of 5 basis points from the same time last week. With an adjustable-rate mortgage mortgage, you’ll usually get a lower interest rate than a 30-year fixed mortgage for the first five years. But you could end up paying more after that time, depending on the terms of your loan and how the rate changes with the market rate. For borrowers who plan to sell or refinance their house before the rate changes, an ARM might be a good option. But if that’s not the case, you might be on the hook for a significantly higher interest rate if the market rates change.

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:

Current average mortgage interest rates

Loan type Interest rate A week ago Change
30-year fixed rate 3.14% 3.19% -0.05
15-year fixed rate 2.44% 2.46% -0.02
30-year jumbo mortgage rate 2.76% 2.80% -0.04
30-year mortgage refinance rate 3.13% 3.16% -0.03

Updated on Nov. 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. Make sure to think about your current financial situation and your goals when trying to find a mortgage. Things that affect what mortgage interest rate you might get include: your credit score, down payment, loan-to-value ratio and your debt-to-income ratio. Having a higher credit score, a larger down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate. The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider additional factors such as fees, closing costs, taxes and discount points. You should shop around with multiple lenders — including credit unions and online lenders in addition to local and national banks — in order to get a mortgage that’s best for you.

What is a good loan term?

When picking a mortgage, you should consider the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only the same for a certain amount of time (usually five, seven or 10 years). After that, the rate adjusts annually based on the market rate.

When choosing between a fixed-rate and adjustable-rate mortgage, you should think about how long you plan to stay in your house. For people who plan on living long-term in a 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 have plans to keep your new home for more than three to 10 years, however, an adjustable-rate mortgage could give you a better deal. The best loan term is entirely dependent on your situation and goals, so make sure to think about what’s important to you when choosing a mortgage.

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