Currently, the average 30-year fixed mortgage rate is 6.83%.
For borrowers looking to refinance their current home loan, the average 30-year refinance rate is 7.06%.
| 30-year fixed rate | 6.83% | 7.06% |
| FHA 30-year fixed rate | 6.12% | 6.79% |
| VA 30-year fixed rate | 6.00% | 6.20% |
| 30-year fixed rate refinance | 7.06% | 7.27% |
| FHA 30-year fixed rate refinance | 7.15% | 8.20% |
| VA 30-year fixed rate refinance | 6.63% | 7.00% |
| 30-year 5/1 ARM refinance | 6.27% | 6.92% |
While mortgage rates are heavily influenced by factors beyond your control, such as Federal Reserve policy and overall market conditions, there are still some steps you can take to snag a competitive rate.
Check out our list of the best mortgage lenders.
Interest rates on 15-year fixed mortgages are lower than 30-year fixed mortgage loans, since you’re paying off the loan faster. Since the loan term is shorter with a 15-year loan, the monthly payment will be higher, but you’ll pay less interest over the life of the loan. Currently, the average 15-year fixed mortgage rate is 5.85% compared to 6.83% for 30-year fixed mortgage rates.
Learn more about 15-year vs. 30-year mortgages.
Your monthly payments will be lower: One of the main draws of a 30-year mortgage is lower monthly payments, since you’re repaying the loan over a longer term.
You could qualify for a higher loan amount: Since your payments will be lower, it’s possible for you to get approved for a larger loan amount, helping you afford a more expensive home.
You’ll have more financial wiggle room: Spreading your payments out over a longer term gives you more flexibility with your finances and helps you avoid becoming “house poor.” This way, you’ll have more money to put toward other goals, such as saving for retirement or making home improvements.
Your mortgage rate may be higher: Since 30-year mortgages include more risk than shorter-term mortgages, lenders typically charge higher rates.
You’ll pay more interest over time: Since your mortgage term is stretched over a longer time period, you’ll pay more in interest than you would with a shorter-term loan.
Your equity will grow more slowly: During the first several years of a 30-year term, a larger portion of your monthly payments go toward interest than principal, meaning it’ll take longer for you to build home equity.
Chief Consumer Finance Analyst |
“A 30-year mortgage costs a small fortune in interest payments over the years. You could shorten that commitment and lower the total interest you pay by getting a 15-year mortgage, but the trade-off is typically a monthly payment that is hundreds of dollars higher than you’d have with a 30-year mortgage. That makes the 30-year mortgage a far more appealing and realistic option.” |
There are many factors that go into determining your mortgage rate, including your credit score, loan amount, debt-to-income (DTI) ratio and the type of property you’re financing. Mortgage rates are also impacted by the overall economy, job market and inflation. They also vary by mortgage lender, since each lender has its own risk tolerance, overhead expenses and underwriting requirements.
Mortgage rates aren’t expected to drop significantly in the immediate future. The current national mortgage rates forecast is for rates to remain elevated, which means we’re unlikely to see rates lower than 6% in 2025.
There will always be some level of uncertainty when it comes to the decision to lock your mortgage rate, since rates are so volatile. Generally speaking, it’s a good idea to lock in your rate as soon as possible so you don’t get stuck with a higher rate. Keep in mind there’s a risk that rates could go down, and you’ll still be locked into the higher rate.
The monthly principal and interest payment would be about $665. This assumes a 20% down payment, and doesn’t include property taxes, homeowners insurance or HOA fees.
One of the best ways to get a lower mortgage rate is to compare offers from multiple lenders, since rates and fees vary between companies. You can also work on increasing your credit score or paying off debt before applying for a mortgage.
Yes, it’s possible to refinance a 30-year mortgage — and it can be beneficial if it helps you secure a lower rate, reduce your monthly payments or save on interest charges in the long run. Keep in mind you’ll pay refinance closing costs, which can run up to 6% of your loan amount. It’s important to calculate your break-even point, which is how long it takes for the benefits of refinancing to outweigh the costs.
