# 30-year Mortgage Rates for October 2021

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## What Are Today’s 30-Year Fixed Mortgage Rates?

On Friday, October 22, 2021 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 30-year fixed mortgage rate is 3.180% with an APR of 3.350%. The average 30-year fixed mortgage refinance rate is 3.160% with an APR of 3.280%.

## Current 30-Year Mortgage Rates

ProductInterest RateAPR
30-Year Fixed Rate3.160%3.280%
30-Year FHA Rate2.760%3.640%
30-Year VA Rate2.850%3.060%
30-Year Fixed Jumbo Rate3.160%3.230%
20-Year Fixed Rate3.020%3.150%
15-Year Fixed Rate2.450%2.620%
15-Year Fixed Jumbo Rate2.450%2.510%
10-Year Fixed Rate2.430%2.600%
5/1 ARM Rate2.720%3.990%
5/1 ARM Jumbo Rate2.730%3.690%
7/1 ARM Rate2.870%4.000%
7/1 ARM Jumbo Rate2.940%3.920%
10/1 ARM Rate3.080%4.080%
ProductInterest RateAPR
30-Year Fixed Rate3.180%3.350%
30-Year FHA Rate2.720%3.590%
30-Year VA Rate2.820%2.990%
30-Year Fixed Jumbo Rate3.180%3.280%
20-Year Fixed Rate3.040%3.200%
15-Year Fixed Rate2.460%2.700%
15-Year Fixed Jumbo Rate2.460%2.530%
10-Year Fixed Rate2.430%2.620%
5/1 ARM Rate2.800%3.920%
5/1 ARM Jumbo Rate2.950%3.600%
7/1 ARM Rate2.920%3.820%
7/1 ARM Jumbo Rate3.090%3.660%
10/1 ARM Rate3.070%4.040%

Rates as of Friday, October 22, 2021

## What Is a 30-Year Fixed Mortgage?

A 30-year fixed-rate mortgage is repaid over a 30-year period and its interest rate never changes. The long repayment period means you’ll have smaller monthly payments compared to shorter-term loans, which helps make this the most popular type of loan. In recent years, roughly eight out of 10 conventional mortgages are 30-year fixed rate loans, according to Freddie Mac.

## What Is a Good 30-Year Fixed Mortgage Rate?

In July 2020, the average 30-year fixed mortgage rate fell below 3% for the first time since the Federal Reserve began tracking mortgage rates. Since then, rates have climbed back above 3%. So if you can qualify for a 30-year fixed rate mortgage anywhere between 3% to 3.5% you’re getting a solid deal.Certain mortgages typically have higher rates, like loans for investment properties, jumbo loans, and cash-out refinance mortgages. So a slightly higher rate for one of these types of loans can still be a great deal.

## How Do I Compare Current 30-Year Fixed Mortgage Rates?

Comparing 30-year fixed mortgage rates isn’t as straightforward as looking at the mortgage interest rates you qualify for with different lenders. This is because a mortgage interest rate doesn’t account for mortgage fees. To get an understanding of the overall cost of your home loan, you need to also compare annual percentage rates (APR), which factor in other costs like loan origination fees and discount points.

After you apply for a mortgage you’ll get what is known as a Loan Estimate from the lender. Learning how to read a Loan Estimate is important because it shows an estimate of every fee the lender is charging you. Since every Loan Estimate form is the same, it’s a vital tool for comparing mortgage lenders and avoiding excessive fees.

## When to Consider a 30-year Fixed Mortgage

There are a handful of advantages to a 30-year fixed-rate mortgage that make it the right choice in many cases. But choosing a mortgage is a highly personal decision and there are certain situations where a 30-year fixed mortgage isn’t a good fit.

### Pros of a 30-Year Fixed Mortgage

The main benefit of a 30-year loan with a fixed interest rate is long-term affordability. The loan’s interest rate never changes, so the only way your monthly payments can increase is if your property taxes or homeowners insurance go up. But those adjustments are typically only a small portion of your monthly payment, and insurance is always something you can shop around for in search of a lower premium.

Spreading out the repayment term over 30 years instead of 15 years also makes homes in expensive real estate markets more affordable. For example, a $350,000 mortgage with a 3% interest rate would cost$900 more a month with a 15-year loan compared to a 30-year loan. So a 30-year fixed-rate home loan is a more affordable option.

### Cons of a 30-Year Fixed Mortgage

If you want to get the absolute lowest mortgage rate, a 30-year fixed rate loan isn’t the best option. Currently, the average 15-year fixed mortgage rate is roughly half a percentage point lower than the comparable 30-year fixed rate.

Since you’re repaying the loan over a much longer period of time, a 30-year loan is much more expensive than a shorter-term mortgage. A 30-year $350,000 home loan at a 3% interest rate will cost you$531,358 over the life of the loan. You’ll pay \$111,252 less for the exact same mortgage amount with a 15-year term and a 2.5% interest rate.

## Is a 30-Year Fixed Mortgage Right for You?

Whether or not a 30-year fixed-rate mortgage is right for you depends on your personal situation. Everything from where you are in your career to where you want to live can impact the decision.

A 30-year fixed mortgage can be ideal for a first-time homebuyer because they are more affordable. But as your income increases, you may want to refinance to a shorter-term loan to reduce the interest you’ll pay over the life of the loan.

There are even rare circumstances where adjustable-rate mortgages (ARM) can make sense. If you know you will be moving before the interest rate adjusts, an ARM may be cheaper than a 30-year fixed rate mortgage for those first few years.

## How to Find Personalized 30-Year Mortgage Rates?

To find personalized 30-year mortgage rates you’ll have to share a bit about your finances with potential lenders. They will need information, like your income, credit history, and debt-to-income ratios.

You can usually get a ballpark estimate from lenders by sharing this information with them over the phone. However, to get preapproved for a mortgage you will need to verify everything with documentation and a credit check. Being preapproved for a mortgage will give you an idea of what mortgage rate you qualify for, but the rate won’t be locked in until after you submit an application and are approved for the loan. Even then, you’ll want to confirm with the lender that your rate is locked and how long the rate lock will be valid for.

## Refinancing a 30-Year Mortgage

Refinancing is when you replace your existing mortgage with another. When 30-year refinance rates are significantly lower than your existing mortgage rate, you may be able to save money by refinancing to a lower rate. Keep in mind that the potential savings will need to outweigh the upfront closing costs you’ll pay to refinance, which are typically 3% to 5% of the loan balance.
Another factor to consider when you refinance is, how many years have you been paying off your current mortgage? If you’re 10 years into a 30-year loan, taking out a new 30-year mortgage adds those 10 years back onto your repayment term. Even though you may be lowering your monthly payment in that scenario, you could end up paying more interest over the long term even if you have a lower rate.

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