Current 30-Year Mortgage Rates
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The 30-year fixed-rate mortgage remains the most popular home loan by a wide margin. Roughly 90% of homeowners with a mortgage have a 30-year fixed-rate mortgage, according to Freddie Mac.
But before you lock in a 30-year rate and sign on the dotted line, learn about today’s rates and read exclusive tips from a mortgage expert to help you decide whether a 30-year mortgage is ultimately the best fit for your financial goals.
Current 30-Year Mortgage Rates
Today’s average rate on a 30-year fixed mortgage is 6.19% compared to the 6.29% average rate last week.
The 52-week high for a 30-year fixed mortgage was 7.17% and the 52-week low was 6.15%.
How 30-Year Mortgage Rates Affect Monthly Payments
Mortgage rates are measured in what are known as basis points, where 100 basis points equals 1%. For example, a quarter of a percentage point change in interest rates is equivalent to a 25 basis point shift.
If you plan to stay in your home long term, even seemingly small fluctuations like this—and sometimes even smaller variations—can make a noticeable difference in your monthly mortgage payments and the amount of interest you’ll pay over the loan term.
Sample Monthly Payment Breakdown
Wondering how much mortgage rate declines can save you? Here’s a breakdown based on a $350,000, 30-year fixed mortgage loan.
Historical 30-Year Mortgage Rates
Today’s high mortgage rates may seem high, but history offers a fuller picture of where they fall within the broader spectrum.
Here’s how 30-year rates have moved over the decades.
While [today’s rates] may seem high compared to the historic lows following the financial crisis and the COVID-19 pandemic, they are still below the 50-year average. Understanding that this may be the new normal can help buyers make more informed decisions rather than waiting indefinitely for rates that may not return.
– Michael Merritt, senior vice president of customer care and default mortgage servicing at BOK Financial and Forbes Advisor advisory board member.
What Factors Impact the Mortgage Rate You Get?
Whenever you see a published rate, don’t assume that’s the one you’ll get.
The mortgage rate a lender offers depends on a complex mix of factors—some within your control, some outside of it.
External Market Factors That Influence Mortgage Rates
Although these factors are beyond your control, staying informed on the latest news and trends in these areas can help you make smarter, more timely mortgage rate decisions.
- Federal Reserve monetary policy decisions
- 10-Year Treasury yield fluctuations
- Inflation
- Government lending regulations
- Broader economic conditions
- State of the housing market
Personal Factors That Can Impact Your Rate
These are the areas where you can take action to improve your chances of qualifying for more competitive mortgage rates:
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How To Get the Best 30-Year Mortgage Rates
Focusing on the factors you can control and creating a plan to strengthen them will put you on the path to securing the best 30-year mortgage rate possible.
First, review your credit score and determine if you need to improve it and by how much.
Lenders generally prefer a minimum 620 credit score to qualify for a conventional loan. However, you likely won’t get the lowest rates with that. A 740 credit score is often the benchmark lenders look for to offer the lowest rates.
Lenders often advertise their lowest mortgage rates on their websites. If you scroll to the bottom and read the fine print, you’ll usually find the minimum credit score to qualify for their lowest rates.
In addition to your credit score, your debt-to-income (DTI) ratio is a key factor lenders weigh heavily. DTI measures your gross monthly income compared to your total recurring debt payments, expressed as a percentage.
For example, if your total monthly debt—including your mortgage payment—totals $2,000 and your gross monthly income is $5,000, your DTI is 40%.
Lenders typically require borrowers to have a DTI ratio no higher than 43% to 45% (sometimes 50% for FHA loans and borrowers with strong credit scores and solid cash reserves), so make sure you fall below that threshold by reducing your debt, increasing your income or both.
This Commonly Overlooked Strategy Can Help You Get a Lower Rate
Yet, while these are good strategies to qualify for more attractive mortgage rates, Michael Merritt, senior vice president of customer care and default mortgage servicing at BOK Financial and Forbes Advisor advisory board member, points to a tactic to get a better rate that he says many borrowers overlook.
“Many borrowers wait until they’re ready to buy before speaking with a mortgage professional, but starting that conversation sooner can make a significant difference,” Merritt says. “By reviewing your financial profile early, a mortgage expert can identify areas for improvement, such as paying down specific debts, that could help you qualify for a better rate.”
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30-Year Mortgage Pros and Cons
Like any loan, a 30-year mortgage comes with its advantages and disadvantages. Here are some common ones to consider before you commit to a mortgage.
15-Year vs. 30-Year Mortgage: Which Is Better?
Opting for a 15-year mortgage instead of a 30-year means you’ll pay off your loan in half the time. Additionally, shorter-term loans tend to come with more attractive interest rates. This combination can lead to significant interest savings over the loan term.
While taking this route may seem like a no-brainer, a 15-year mortgage is not the best fit for everyone.
“A 15-year mortgage can be a smart choice for buyers who can comfortably afford the higher monthly payments,” says Merritt. “However, the higher monthly obligation can be a drawback, especially if it stretches your budget too thin or limits your financial flexibility.”
If that sounds like you, Merritt says a 30-year mortgage is likely the better option. However, he notes that you’re not confined to the full term. There are steps you can take to shorten it and reduce your overall interest costs.
“One strategy is to take out a 30-year loan but make additional principal payments each month based on a 15-year amortization schedule,” Merritt says. “This approach gives you the flexibility to pay off the loan faster without being locked into the higher required payment, helpful if your financial situation changes or unexpected expenses arise.”
Another approach is to start with a 30-year mortgage and refinance to a shorter term when refinance rates drop. Just do the math first. Refinancing comes with closing costs similar to your original loan, so you want to be confident that you’ll be in the home long enough to recoup these costs. Otherwise, you’ll end up squandering the savings a lower rate offers.
So, what’s the final verdict on 15-year versus 30-year?
“Ultimately, the right choice depends on your income stability, financial goals, and how long you plan to stay in the home,” Merrit says.
Frequently Asked Questions (FAQs)
Is a 30-year mortgage right for me?
A 30-year mortgage can be a smart choice if keeping your monthly payments low is your top priority. Spreading payments across three decades compared to shorter terms reduces the amount you need to pay every month and frees up your cash for other needs. You can always pay more toward the principal to shorten your term if you have the extra funds. Also, if you’re looking at a more expensive home, a 30-year loan may improve your chances of qualifying compared to shorter-term loans if lenders determine you can handle the monthly payments.
How many payments are in a 30-year mortgage?
A 30-year mortgage typically follows a 360-payment amortization schedule—that is, 12 payments per year over 30 years. However, if you make extra payments toward your principal, you can reduce your loan term and total number of payments, depending on how often and how much you pay. Use our amortization calculator to see how additional payments reduce that 360 number and shrink your overall interest costs.
How much do 30-year mortgages cost?
In addition to the loan principal repayment, a 30-year mortgage comes with several upfront and ongoing costs. In most cases, you’ll need a down payment—usually between 3% and 20% of the home’s sale price. Additionally, you’ll have to pay closing costs, which typically run between 2% and 5% of the loan amount. Other expenses include loan interest, property taxes, homeowners’ insurance, additional homeowners coverage (if applicable) and mortgage insurance if your down payment is below 20%. Interest will be the biggest cost, so making extra principal payments to reduce the loan term can save you money on interest in the long run.