Current Mortgage Rates

Market Conditions.  The economy and overall market conditions are play a major role in determining mortgage rates.  In general, when the economy is good, mortgage rates are higher and when the economy is struggling, rates are lower.  Mortgage rates also correlate to the interest rates set by the Federal Reserve.  When the Fed raises its interest rates, which usually happens when the economy is strong, mortgage rates tend to follow.

Mortgage Length. The longer your loan, the higher your mortgage rate and the shorter your loan, the lower your rate.  So if you want to save a lot of money on interest expense, choose a shorter loan such as a 15 year mortgage.  The downside to shorter loans is that they have higher monthly payment because you repay the mortgage over a shorter time period.  Our rate tables enable you to compare mortgage rates and payments for loans with different lengths.

Loan Program.  Fixed rate mortgages tend to have higher mortgage rates than the initial rate for an adjustable rate mortgage (ARM).  The drawback to an ARM is that your rate and payment may increase over the course of your loan.

Credit Score.  For most loan programs, the higher your credit score, the lower your mortgage rate and vice versa. This is why having a good credit score can save you money on your mortgage.

Your Down Payment. You are usually required to make a down payment of at least 20% to receive the best loan terms from a lender, including the lowest mortgage rate.  Your down payment also determines if you are required to pay mortgage insurance, which is an extra cost for borrowers to consider.

Loan Amount. You may be required to pay a higher mortgage rate for larger loans, also called jumbo loans.  Additionally, some lenders charge higher rates for smaller loans, below $75,000 because they require the the same amount of work but lenders make less money with smaller mortgages. Be sure to understand how your loan amount impacts your mortgage rate.

Lender and Location.  Mortgage rates vary by lender and location.  Rates tend to be lower in more populated areas with more lenders and lower in more rural areas.  The more lenders in an area, the more competition which usually means better loan terms.  Additionally, states apply different mortgage regulations which may impact your rate and fees.  Finally, lenders have discretion to set the loan terms they offer so that is why it is important -- and can potentially save you a lot of money -- to always contact multiple lenders before you select a mortgage. 

Closing Costs. Mortgage rates are usually inversely related to closing costs, which means the higher your costs, the lower your rate. In some case you may pay a higher rate and receive a rebate from the lender instead of paying closing costs.  It is important to understand the relationship between mortgage rates and closing costs to select the loan terms that best meet your needs.

Discount Points.  You can choose to pay discount points to lower your mortgage rate.  A discount point equals 1% of the loan amount and each point should lower your rate by approximately .250%.  When you compare mortgage rates you should also understand the discount points the lender is charging.  Some lenders may offer a low rate that assumes you pay a high number of points.  If two lenders offer similar rates but one uses fewer or no points, choosing the lender that charges less points can save you money.  Our lender table enables you to review how changes in discount points impact your mortgage rate.