| 30-year fixed rate | 7.12% | 7.34% |
| FHA 30-year fixed rate | 6.16% | 6.82% |
| VA 30-year fixed rate | 5.98% | 6.17% |
| 30-year fixed rate refinance | 7.38% | 7.60% |
| FHA 30-year fixed rate refinance | 6.71% | 7.45% |
| VA 30-year fixed rate refinance | 6.47% | 6.85% |
| 30-year 5/1 ARM refinance | 6.63% | 7.04% |
Read more about the minimum mortgage requirements for 2025.
Borrowers with credit scores of 780 or higher typically receive the lowest interest rates. Paying off credit card balances and making payments on time will help keep your credit scores in good shape.
Lenders often charge higher rates for low-down-payment loans because there’s more risk that the borrower might default. Adding some extra cash to your down payment will help reduce that risk and usually snag you a lower rate.
Lenders typically charge a premium for a cash-out refinance compared to a rate-reduction refi, as taking on a bigger mortgage bumps up the risk that you’ll default. Borrow only what you need — the extra equity may come in handy later if you suddenly need to sell your home.
Studies have shown that shopping with three to five mortgage lenders can get you a lower rate, which could mean thousands of dollars in savings over 30 years. Rates change daily, so collect your loan estimates on the same day for apples-to-apples comparisons.
Many lenders advertise the interest rates they offer, but you should dig a little deeper as you compare quotes. Annual percentage rates (APRs) are a truer measure of the costs of borrowing with a given loan, since an APR includes lender fees and closing costs in addition to the interest rate.
The cost to buy one point is equal to 1% of your loan amount. Paying mortgage points lowers your mortgage rate, which can save you thousands of dollars in interest over the life of your loan. Just be sure to calculate your break-even point — if you don’t plan to stay in your home long enough to recoup the cost of the discount points, buying them isn’t a good idea.
Check out our list of the best mortgage lenders.“One of the best ways to get a lower rate on a 30-year mortgage is to shop around and compare offers from other lenders. Different lenders can offer different rates, and shopping around can help you snag a lower rate than you would’ve gotten had you gone with the first lender you spoke to.”
~ Jacob Channel, senior economist
Mortgage rates are expected to hold steady into February. Unfortunately, the mortgage rates forecast doesn’t expect rates or home prices to fall in early 2025.
This week, average 30-year rates fell by 0.01 percentage points and 15-year rates went down by 0.04 percentage points. This is only the second time rates have fallen since mid-December despite the Federal Reserve making three rate cuts at the end of 2024.
Here are the U.S. weekly average rates from the Freddie Mac Primary Mortgage Market Survey, as of January 30, 2025:
30-year mortgage rates crossed the 7% threshold for the first time in over seven months last week. These higher rates combined with housing inventory shortages and lower affordability make it more difficult for potential homebuyers to invest in a new home. It’s always important to make sure you compare rate offers from multiple lenders to get the best deal on your home purchase.
Refinance rates are usually slightly more expensive than purchase rates, but the two tend to move roughly in tandem. In today’s rates environment, you can expect about a 26-basis-point difference between what you’ll pay to refinance versus purchase. (That said, on a $400,000 loan that’s likely only going to affect your monthly payment by about $69, so it shouldn’t be a huge concern.)
Use our refinance calculator to help decide whether a refinance is right for you.A 30-year loan term is the longest fixed-rate mortgage term normally offered. Still, there are trade-offs with choosing a 30-year versus a 15-year loan.
In general, a 30-year mortgage makes more sense for someone who wants the lowest monthly payments and the most buying power for their budget.
| Pros | Cons |
|---|---|
| Lower monthly payment compared to a 15-year mortgage Qualify for a higher loan amount and more expensive home More room in your budget to accomplish other financial goals May get a bigger tax write-off because you'll be paying more interest | Higher interest rate than a 15-year mortgage Won't build home equity as quickly as a shorter loan term Pay more interest over the life of the loan May tempt you to spend more because you can get a larger loan |
If you aren’t sure about your interest rate or think you want to pay off your home faster, there are other options you can consider for your home loan.
We compare 30-year mortgage rates and monthly payments with each of these options in more detail below.
ARM loans will sometimes offer a lower starting rate than 30-year fixed mortgage loans. This “teaser” rate remains for three, five or seven years, so you start out with lower monthly payments for that time, which can help you save money.
For example: Let’s say you want to compare potential monthly payments on a 30-year fixed-rate mortgage versus a 5/1 ARM that’s used to buy a $350,000 home with a $50,000 down payment.
| 30-year fixed | 5/1 ARM | |
|---|---|---|
| Rate | 6.875% | 5.98% |
| Monthly payment (principal and interest) | $1,970.79 | $1,794.80 |
Takeaway: A 5/1 ARM you could lower your monthly payments by $176 for the first five years.
| An ARM may make sense if you want to: | An ARM may not be for you if: |
|---|---|
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Interest rates on 15-year fixed mortgages are lower than 30-year fixed mortgage loans, since you’re paying off the loan faster. This also means that your monthly payment is higher with a 15-year loan, but you’ll ultimately pay less interest over the life of the loan.
For example: Let’s say you want to compare potential monthly payments on a 30-year fixed-rate mortgage versus a 15-year loan. We’ll imagine the loan was used to buy a $350,000 home with a $50,000 down payment.
| 30-year fixed | 15-year fixed | |
|---|---|---|
| Rate | 6.76% | 5.76% |
| Monthly payment (principal and interest) | $1,947.79 | $2,492.84 |
| Total interest paid | $401,203.99 | $148,710.65 |
Takeaways:
| A 15-year loan may make sense if you want to: | A 15-year mortgage may not be for you if: |
|---|---|
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Lenders look at your debt-to-income (DTI) ratio, which compares your gross monthly income to your debts, to determine how much you can afford. Lenders usually consider a DTI ratio under 35% to be “good,” but you may qualify for a loan even with a higher DTI. Most loan programs allow for a maximum DTI ratio between 41% and 45%.
Common mortgage loan types include conventional, FHA, USDA and VA loans. Borrowers with unique needs can also utilize nonqualified mortgages that cater to specific financial situations or property types.
You should refinance a 30-year mortgage if you’ll reach your break-even point — the point at which your refinance savings equal or exceed your refinance closing costs — before selling the house. A break-even point is calculated by dividing your closing costs by your monthly savings. However, there are some other reasons you should consider refinancing a 30-year mortgage:
The process for refinancing a home is usually very similar to applying for any mortgage, with one big exception: streamline refinance loans. They’re called “streamline” because they’re faster and have far fewer hoops to jump through compared with standard refinances. The main catch, though, is that they can only be used to refinance a VA loan into a new VA loan, or an FHA loan into a new FHA loan.
Two examples of streamline refinance programs are VA interest rate reduction refinance loans (IRRRLs) and FHA streamline refinances.
Both purchase and refinance closing costs usually run about 2% to 6% of the loan amount.
