Mortgage rates continue to rise. According to Zillow, the national average 30-year fixed mortgage rate has increased by six basis points 6.78%And today’s 15-year fixed interest rate is three basis points higher 6.07%.
The economic outlook for Q1 2025 doesn’t look like mortgage rates are going to fall anytime soon. So, what can you do to get the lowest interest rate in a high-rate environment? First, look for ways to improve your finances — improve your credit score, pay off debt, and save more for a down payment. Second, Shop around with several mortgage lenders. Find one that offers the mortgage loan you want, good rates, and low fees.
Dig Deeper: 5 strategies to get the lowest mortgage rate
Here are the current mortgage rates, according to the latest data from Zillow:
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30-year stable: 6.78%
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20-year stable: 6.55%
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15-year stable: 6.07%
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5/1 ARM: 7.16%
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7/1 ARM: 7.08%
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30-year VA: 6.20%
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15-year VA: 5.68%
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5/1 VA: 6.36%
Remember, these are national averages and are rounded to the nearest hundredth.
These are today’s mortgage refinance rates, according to the latest Zillow data:
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30-year stable: 6.84%
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20-year stable: 6.66%
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15-year stable: 6.15%
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5/1 ARM: 7.50%
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7/1 ARM: 7.44%
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30-year VA: 6.13%
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15-year VA: 5.86%
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5/1 VA: 6.05%
Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a home, although this is not always the case.
read more: Is now a good time to refinance your mortgage?
Use the free Yahoo Finance Mortgage Calculator To see how different mortgage terms and interest rates affect your monthly payments.
Our calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.
The average 30-year mortgage rate today is 6.78%. A 30-year term is the most popular type of mortgage because by spreading your payments over 360 months, your monthly payment is lower than a shorter-term loan.
The average 15-year mortgage rate today is 6.07%. When deciding between a 15-year and 30-year mortgagesConsider your short-term versus long-term goals.
A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years earlier, and that’s 15 fewer years to accrue interest. But the trade-off is that your monthly payment will be higher because you pay the same amount in half the time.
Suppose you are a $300,000 mortgage. With a 30-year term and a rate of 6.78%, your monthly payment for principal and interest would be approx. $1,952And you will pay $402,641 in interest over the life of your loan — on top of that $300,000 principal.
If you get the same $300,000 mortgage but with a 15-year term and 6.07% rate, your monthly payment will go up. $2,543. But you will only pay $157,727 In interest over the years.
With A Fixed rate mortgageYour rate is locked in for the life of your loan. However, if you refinance your mortgage you will get a new rate.
N Adjustable-rate mortgages Keeps your rate the same for a predetermined period of time. Then, the rate will go up or down based on a number of factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate will be locked for the first seven years, then change annually for the remaining 23 years of your term.
Adjustable rates usually start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will increase. Recently, however, some fixed rates are starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.
Dig Deeper: Fixed-rate vs. adjustable-rate mortgages
Mortgage lenders typically give the lowest mortgage rates to people with high down payments, good or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try to save more, Improving your credit scoreOr paying off some debt before starting to shop for homes.
Waiting for rates to drop is probably not the best way to get the lowest mortgage rate right now unless you’re really in a rush and don’t mind waiting until late 2025. If you’re ready to buy, focus on your personal finances. Probably the best way to lower your rate.
to find out The best mortgage lenders For your position, apply Mortgage pre-approval With three or four companies. Be sure to apply to all of them within a short period of time — doing so will give you the most accurate comparison and have the least impact on your credit score.
When choosing a lender, don’t just compare interest rates. Look at Mortgage Annual Percentage Rate (APR) – This factors in the interest rate, any discount points, and fees. APR, also expressed as a percentage, represents the actual annual cost of borrowing. This is probably the most important number to look for when comparing mortgage lenders.
According to Zillow, the national average 30-year mortgage rate is 6.78%, and the average 15-year mortgage rate is 6.07%. But these are national averages, so the average in your area may be different. Averages are generally higher in expensive parts of the US and lower in less expensive areas.
According to Zillow, the average 30-year fixed mortgage rate is currently 6.78%. However, you can get an even better rate with an excellent credit score, larger down payment, and lower debt-to-income ratio (DTI).
Mortgage rates aren’t expected to drop much in the near future, although they may inch down here and there.
