June 24, 2021

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Today’s Mortgage and Refinance Rates: May 15, 2021

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Mortgage and refinancing rates have risen since last Saturday. However, most interest rates have declined since then in the last month and continue a pattern of mortgage rates that tend to decline for several weeks.

Mortgage and refinancing rates are currently low overall. It might be a good time to set a rate.

To secure a mortgage rate, Apply for pre-approval from a lender. Once pre-approved, your rate will typically be locked for 60 to 90 days. You can also Apply to multiple lenders when you shop at the best price.

Conventional Rates from Money.com; RedVentures Government Supported Interest Rates.

Find out more and receive quotes from multiple lenders »

Although today’s mortgage rates are low overall, the adjustable rates are much higher than the fixed rates.

prices for conventional mortgagesWhat you can think of as “normal mortgages” are already low right now. But government-sponsored mortgages through that FHA and become As a rule, you pay even lower prices, depending on which term you choose. State mortgages are great options if you qualify.

Conventional Rates from Money.com; RedVentures Government Supported Interest Rates.

Compare Refinancing Lender Offers »

The lowest refinancing rates today are the 15-year fixed rate and the VA mortgage rate.

Mortgage rates have increased since last weekend but are still low overall. It might be a good time to set a rate.

But prices are unlikely to go up anytime soon, so you don’t have to rush to take advantage of the low rates. Prices are likely to stay low for several months, if not longer. You may have time to improve your finances in order to get a better interest rate.

To get the best possible price, consider the following steps before applying:

  • Increase Your Credit Score by making timely payments, paying off debts, or aging your credit. The higher your score, the lower your interest rate is likely to be.
  • Save more for a deposit. The minimum deposit you need depends on it what kind of mortgage you’re after However, a higher deposit usually results in a lower rate.
  • Lower your debt-to-income ratio. Your DTI ratio is the amount you pay for debt each month divided by your gross monthly income. Most lenders want a rate of 36% or less. To lower your quota, pay off debts or think about ways to increase your income.

You can secure a low interest rate now if your finances are in good shape, but there is no need to rush to get a mortgage or refinance if you are not prepared.

Mortgage rate development

With the exception of the 10/1 ARM, all mortgage rates have increased since last Saturday. They have all fallen since last month.

Refinancing rate trends

Refinancing rates have risen across the board since last Saturday. They’ve been down since April 15th, with the exception of the 30-year fixed rate.

When you take one out 15 year fixed mortgageIt will take you 15 years to repay your loan and you will be paying the same interest rate all the time.

With a fixed mortgage with a term of 15 years, you pay more per month than with a fixed mortgage with a term of 30 years because you are paying off the same mortgage Mortgage capital in half the time.

On the positive side, a term of 15 years costs less than a longer term. You pay off the mortgage in a few years and get a lower interest rate.

With a 30 year fixed mortgageYou pay off your loan over 30 years and secure your interest rate for the entire term.

With a 30-year fixed-rate mortgage, you pay less per month than with a shorter term because you spread your payments over several years.

However, if you have a term of 30 years, it will cost you more interest than a term of 15 years because you will be paying a higher interest rate for longer.

A fixed rate mortgage locks your interest rate for the life of your mortgage. However, with a variable rate mortgage, you pay the same rate for a set period of time. This interest rate then changes regularly. A 10/1 ARM will keep your rate the same for a decade. Then your rate fluctuates annually.

ARM interest rates are currently at historic lows, but you may still want to take out a fixed rate mortgage. You can avoid the problems of a possible future rate hike with an ARM and ensure a low rate for 15 or 30 years.

If you are considering getting an ARMAsk your lender about your interest rates if you would choose a fixed rate versus a variable rate mortgage.

We also display interest rates for FHA and VA mortgages, two types of government-supported mortgages.

Government mortgages are secured by federal agencies, so the agency will compensate your lender if you default on your mortgage. These mortgages are less risky than traditional mortgages for lenders. As a result, the requirements for your creditworthiness, debt-to-income ratio, or down payment tend to be lower.

Government mortgages also often have lower interest rates.

Government home loans can be great deals if you are eligible to get one. Here are your options:

  • FHA mortgage: This type of loan is not limited to any particular type of person. However, it is especially useful if your creditworthiness is insufficient to qualify for a traditional mortgage. Lots of lenders offer FHA loans for those with a score as low as 580.
  • VA mortgage: You will likely qualify if you are an active military member or veteran.
  • USDA mortgage: You are eligible if you fall below a certain income limit and buy a house in a rural area.

Mortgage and refinancing rates by federal state

Check the latest prices in your state at the links below.

New Hampshire
New Jersey
New Mexico
new York
North Carolina
North Dakota
Rhode Island
South carolina
South Dakota
Washington, DC
West Virginia

About the authors

Laura Grace Tarpley is an editor at Personal Finance Insider, specializing in mortgages, refinancing and lending. She is also a certified teacher for personal finance (CEPF). During her five years in the personal finance arena, she has written extensively on ways to navigate credit.

Ryan Wangman is a Review Fellow at Personal Finance Insider reporting on mortgages, refinances, loans, bank accounts and bank reviews. In his previous experience writing about personal finance, he has written about credit scores, financial literacy, and home ownership.