Mortgage interest rates today for Aug. 12, 2021: Rates move upward

A couple of closely followed mortgage rates grew today. 15-year fixed and 30-year fixed mortgage rates both were higher. For variable rates, the 5/1 adjustable-rate mortgage also rose.

Although mortgage rates are always moving, they are quite low right now. If you plan to buy a house, now might be an ideal time to get a fixed rate. But as always, make sure to first think about your personal goals and circumstances before buying a house, and talk to multiple lenders to find a lender who can best meet your needs.

Take a look at mortgage rates for different styles of loan

30-year fixed-rate mortgages

For a 30-year, fixed-rate mortgage, the average rate you’ll pay is 3.05%, which is a growth of 9 basis points as seven days ago. (A basis point is equivalent to 0.01%.)

Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a smaller monthly payment than a 15-year one — but often a higher interest rate. You won’t be able to pay off your house as quickly and you’ll pay more interest over time, but a 30-year fixed mortgage is a good option if you’re looking to minimize your monthly payment.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 2.35%, which is an increase of 9 basis points from seven days ago.

You’ll definitely have a bigger monthly payment with a 15-year fixed mortgage compared to a 30-year fixed mortgage, even if the interest rate and loan amount are the same. However, if you can afford the monthly payments, there are several benefits to a 15-year loan. These include typically being able to get a lower interest rate, paying off your mortgage sooner, and paying less total interest in the long run.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 3.08%, an uptick of 11 basis points compared to last week.

With an ARM mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. However, changes in the market may cause your interest rate to increase after that time, as detailed in the terms of your loan.

Because of this, an adjustable-rate mortgage may be a good option if you plan to sell or refinance your house before the rate changes. If not, changes in the market might significantly increase your interest rate.

Mortgage rate trends

We use data collected by Bankrate, which is owned by the same parent company as CNET, to track changes in these daily rates. This table summarizes the average rates offered by lenders across the country:

Current average mortgage interest rates

Updated on Aug. 12, 2021.

How to find personalized mortgage rates

To find a personalized mortgage rate, talk to your local mortgage broker or use an online mortgage service. In order to find the best home mortgage, you’ll need to consider your goals and current finances.

Specific interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Having a higher credit score, a higher down payment, a low DTI, a low LTV, or any combination of those factors can help you get a lower interest rate.

The interest rate isn’t the only factor that affects the cost of your home — be sure to also consider other costs such as fees, closing costs, taxes and discount points. You should speak with several different lenders — such as local and national banks, credit unions and online lenders — and comparison shop to find the best mortgage loan for you.

What’s the best loan term?

When picking a mortgage, remember to consider the loan term, or payment schedule.
The most common mortgage terms are 15 years and 30 years, although 10-, 20- and 40-year mortgages also exist. Another important distinction is between fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are set for the life of the loan. Unlike a fixed-rate mortgage, the interest rates for an adjustable-rate mortgage are only fixed for a certain amount of time (typically five, seven or 10 years). After that, the rate adjusts annually based on the market rate.

One factor to consider when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your house. If you plan on staying long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer more stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. However you may get a better deal with an adjustable-rate mortgage if you only plan to keep your home for a couple years. The best loan term all all depends on your personal situation and goals, so make sure to take into consideration what’s important to you when choosing a mortgage.