Slightly higher following the Treasury trend

Mortgage interest rates rose slightly today. The average 30-year fixed mortgage rate rose seven basis points, according to Zillow. 6.15%. 15-year fixed interest rate increased by 7 basis points 5.69%, Both track the upward trend of the 10-year Treasury yield, a key indicator of mortgage rates.

According to the latest Zillow data, current mortgage rates are as follows:

• 30 year fixed: 6.15%

• 20 year fixed: 6.11%

• 15 year fixed: 5.69%

• 5/1 ARM: 6.47%

• 7/1 ARM: 6.60%

• 30 years VA: 5.83%

• 15 years VA: 5.46%

• 5/1 VA: 5.75%

Remember, these are national averages and have been rounded to the nearest hundredth.

Here are 8 strategies to get the lowest mortgage rate possible.

According to the latest data from Zillow, today’s mortgage refinance interest rates are as follows:

• 30 year fixed: 6.30%

• 20 year fixed: 6.25%

• 15 year fixed: 5.75%

• 5/1 ARM: 6.58%

• 7/1 ARM: 6.91%

• 30 years VA: 5.94%

• 15 years VA: 5.79%

• 5/1 VA: 5.98%

As with purchase mortgage rates, these are national averages that we round to the nearest hundredth. Refinance rates can be higher than purchase mortgage rates, but this is not always the case.

Use the mortgage calculator below to see how various mortgage rates will affect your monthly payments.

The free Yahoo Finance mortgage payment calculator goes even deeper by factoring factors like homeowner’s insurance and property taxes into your calculation. You can even add in private mortgage insurance costs and HOA dues if they apply to you. These monthly expenses, along with your mortgage principal and interest rate, will give you a realistic idea of ​​what your monthly payment could be.

A mortgage interest rate is a fee charged by your lender for borrowing money, expressed as a percentage. There are two basic types of mortgage rates: fixed and adjustable rates.

A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you take out a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30 years. (Unless you’re refinancing or selling the home.)

An adjustable-rate mortgage keeps your rate the same for the first few years, then changes it periodically. Let’s say you bought a 5/1 ARM with a starting rate of 6%. Your rate will be 6% for the first five years, then the rate will increase or decrease annually for the last 25 years of your term. Whether your rate increases or decreases depends on a variety of factors, including the economy and the U.S. housing market.

At the beginning of your mortgage term, most of your monthly payment goes towards interest. As time goes on, less of your payment goes towards interest and more goes towards the mortgage principal or the amount you originally borrowed.

Two categories determine mortgage rates: those you can control and those you can’t.

What factors can you control? First, you can compare the best mortgage lenders to find the one that gives you the lowest rate and fees.

Second, lenders often give lower rates to people with higher credit scores, lower debt-to-income ratios (DTI), and significant down payments. If you can save more or pay off debt before securing a mortgage, the lender will likely give you a better interest rate.

What factors can’t you control? Economy in short.

The list of ways the economy affects mortgage rates is long, but here are the basic details. If the economy is struggling – think of employment rates, for example – mortgage rates drop to encourage borrowing, which helps stimulate the economy. If the economy is strong, mortgage rates rise to offset spending.

All else being equal, mortgage refinance rates are generally slightly higher than purchase rates. So don’t be surprised if your refinance rate is higher than you expected.

Two of the most common mortgage terms are 30-year and 15-year fixed-rate mortgages. Both lock in your rate for the entire loan term.

30-year mortgages are popular because their monthly payments are relatively low. However, it comes with a higher interest rate than shorter terms, and you’ll pay a lot of interest in the long run because you’ve been accumulating interest for thirty years.

A 15-year mortgage can be great because it has a lower rate than you’d get over the longer term, so you’ll pay less interest over the years. You’ll also pay off your mortgage much faster. However, since you pay the same loan amount in half the time, your monthly payments will be higher.

Essentially, 30-year mortgages are more affordable month to month, while 15-year mortgages are cheaper over the long term.

According to 2024 Home Mortgage Disclosure Act (HMDA) data, some of the banks with the lowest average mortgage rates are Bank of America and Citibank. However, to find the best rate, it’s a good idea to research not only banks but also credit unions and companies that specialize in mortgage lending.

Yes, 2.75% is a great mortgage rate. You’re unlikely to get a 2.75% rate in today’s market unless you get an assumable mortgage from a seller who locked that rate in 2020 or 2021, when rates are at an all-time low.

According to Freddie Mac, the lowest fixed mortgage loan interest rate of the last 30 years was 2.65 percent. This was the national average in January 2021. It is extremely unlikely that rates will fall below 3% again anytime soon.

Some experts say refinancing is worth it when you can lock in a rate that’s 2% lower than your current mortgage rate. Others say 1% is the magic number. It all depends on what your financial goals are when refinancing and when your break-even point will be after paying refinance closing costs.