Today’s Mortgage Rates | November 12, 2021
Current mortgage rates hold steady at 3.385% for 30-year fixed loans on November 12, 2021.
The mortgage rate on a 30-year fixed-rate loan is averaging 3.385%, according to the most recent data available. The rate for a 30-year refinance loan is currently 2.507%. Interest rates continue to hover around historic lows, providing favorable conditions for homebuyers and refinancers alike. Borrowers with strong credit should be able to find attractive rates and monthly payments for a home purchase or a mortgage refinance.
Current Mortgage Rates Today
Understanding the current mortgage landscape is essential for anyone considering buying a home or refinancing an existing loan. Today’s rates reflect what a borrower with a 20% down payment and a 700 credit score—roughly the national average score—might pay if they applied for a home loan right now. Here’s a breakdown of the key rates available:
30-Year Fixed-Rate Mortgage Rates
The 30-year fixed-rate mortgage remains the most popular choice among homebuyers. The average rate stands at 3.385% today. This loan type offers predictable monthly payments and provides borrowers with stability over three decades of homeownership. While the interest rate is higher than shorter-term loans, the extended payment period results in more manageable monthly payments. This makes the 30-year fixed-rate mortgage particularly appealing to first-time homebuyers and those seeking payment stability.
15-Year Fixed-Rate Mortgage Rates
For borrowers seeking to pay off their mortgage faster, the 15-year fixed-rate option offers an excellent alternative. The current rate stands at 2.507%. While this represents a lower interest rate compared to 30-year mortgages, the monthly payments will be significantly higher due to the compressed payment timeline. However, borrowers will build equity much faster and save considerably on total interest paid over the life of the loan.
Adjustable-Rate Mortgage (ARM) Rates
Adjustable-rate mortgages can be an attractive option for borrowers planning to sell or refinance within a specific timeframe. These loans typically feature lower initial rates that adjust periodically based on market conditions:
- The latest rate on a 5/1 ARM is 2.239%
- The latest rate on a 7/1 ARM is 3.226%
- The latest rate on a 10/1 ARM is 3.142%
Specialized Loan Programs
Different loan programs cater to specific borrower needs and financial situations. Today’s rates for specialized loan categories are:
FHA, VA, and Jumbo Loan Rates
Government-backed loans and jumbo mortgages provide alternatives for borrowers with varying financial profiles and property values:
| Loan Type | Rate | Description |
|---|---|---|
| 30-Year FHA Mortgage | 3.176% | Federal Housing Administration loans for borrowers with lower credit scores or smaller down payments |
| 30-Year VA Mortgage | 3.252% | Veterans Administration loans exclusively for eligible military service members and veterans |
| 30-Year Jumbo Mortgage | 3.575% | Loans exceeding conforming loan limits for high-value properties |
Current Mortgage Refinance Rates
Refinancing can be an excellent strategy for homeowners seeking to lower their monthly payments, reduce their loan term, or tap into home equity. Today’s refinance rates are highly competitive:
- 30-year fixed-rate refinance: 3.531%
- 15-year fixed-rate refinance: 2.607%
- 5/1 ARM refinance: 2.525%
- 7/1 ARM refinance: 3.604%
- 10/1 ARM refinance: 3.961%
Refinancing presents an opportunity to potentially save thousands of dollars over the life of your loan, especially if you secured your original mortgage at a higher rate. With current rates remaining near historic lows, many homeowners are finding refinancing to be an attractive financial strategy.
Understanding Mortgage Rate Methodology
Money’s daily mortgage rates show the average rate offered by over 8,000 lenders across the United States for the most recent business day when rates are available. Today, we are showing rates for Thursday, November 11, 2021. Our rates reflect what a typical borrower with a 700 credit score might expect to pay for a home loan right now. These rates were offered to people putting 20% down and include discount points.
It’s important to note that Freddie Mac’s weekly rates will generally be lower, since they measure rates offered to borrowers with higher credit scores and larger down payments. Your individual rate will depend on various factors including your credit score, down payment amount, loan type, loan term, and current market conditions.
Why Rates Matter for Your Financial Future
Mortgage rates have a profound impact on your monthly payment and total cost of homeownership. Even a small difference in interest rates can translate to significant savings or costs over the life of your loan. For example, a difference of just 0.5% on a $300,000 mortgage can result in tens of thousands of dollars in savings or additional costs over 30 years.
The current rate environment presents a favorable opportunity for both new homebuyers and homeowners considering refinancing. With rates remaining near historic lows, the monthly payments on home loans are particularly attractive compared to historical averages. This has made homeownership and mortgage refinancing accessible to a broader range of borrowers.
What Factors Influence Your Personal Mortgage Rate
While today’s average rates provide a useful benchmark, your actual mortgage rate will depend on several personal and financial factors:
- Credit Score: Borrowers with higher credit scores typically qualify for lower rates. The national average credit score is around 700, but scores above 750 often receive better pricing.
- Down Payment: Larger down payments typically result in lower rates. The rates quoted today reflect a 20% down payment, which is considered favorable by most lenders.
- Loan Type: Different loan programs carry different risk profiles for lenders, resulting in varying rates.
- Loan Term: Shorter loan terms typically carry lower interest rates than longer terms.
- Property Type: Primary residences often have lower rates than investment properties or second homes.
- Market Conditions: Broader economic factors, Federal Reserve policy, and bond market yields influence mortgage rates daily.
Making Your Mortgage Decision
Choosing the right mortgage involves more than just selecting the lowest rate. Borrowers should consider their long-term financial goals, plans for the property, and overall financial situation. A 15-year mortgage builds equity faster but requires higher monthly payments. A 30-year mortgage offers lower payments but costs more in total interest. An ARM offers lower initial payments but carries the risk of higher payments in the future.
For most borrowers, the 30-year fixed-rate mortgage remains the optimal choice due to its combination of affordable monthly payments and interest rate predictability. However, individual circumstances vary, and consulting with a mortgage professional can help you determine the best option for your situation.
The Mortgage Rate Landscape in 2021
Throughout 2021, mortgage rates have experienced moderate fluctuations while maintaining relatively low levels by historical standards. From historic lows in January, rates have gradually climbed but remain well below the five to six percent range that was common in previous decades. This continued low-rate environment reflects the Federal Reserve’s accommodative monetary policy and efforts to support the housing market recovery.
Experts anticipate that rates may continue to drift slightly higher as economic recovery continues and inflation concerns mount, but any increases are expected to be gradual rather than dramatic. The consensus among industry professionals is that rates will remain in a favorable range for the remainder of 2021, making this an opportune time for those considering purchasing a home or refinancing an existing mortgage.
Frequently Asked Questions
Q: What is today’s average mortgage rate for a 30-year fixed loan?
A: As of November 12, 2021, the average 30-year fixed-rate mortgage is 3.385%. This rate reflects what a borrower with a 700 credit score and 20% down payment might expect to pay.
Q: Should I refinance my mortgage now?
A: Refinancing may make sense if current rates are significantly lower than your existing rate and you plan to stay in your home long enough to recoup closing costs. With current rates near historic lows, many homeowners are finding refinancing attractive. Consult with a mortgage professional to analyze your specific situation.
Q: What’s the difference between a fixed-rate and adjustable-rate mortgage?
A: Fixed-rate mortgages have the same interest rate throughout the loan term, providing payment stability. Adjustable-rate mortgages (ARMs) have lower initial rates that adjust periodically, making them riskier long-term but potentially advantageous for short-term owners.
Q: What credit score do I need to get a good mortgage rate?
A: While borrowers with scores above 750 typically receive the best rates, the national average credit score is around 700, and most lenders work with borrowers in the 680-700 range. Scores below 640 may face higher rates or difficulty qualifying.
Q: Are FHA loans a good option?
A: FHA loans are excellent for first-time homebuyers or those with lower credit scores, as they require only 3.5% down and are more flexible with credit requirements. However, they do require mortgage insurance premiums, which add to your overall cost.
Q: How often do mortgage rates change?
A: Mortgage rates can change daily, sometimes multiple times per day. They’re influenced by broader economic factors, Federal Reserve policy, bond market yields, and lender-specific pricing decisions. Money’s daily rate surveys capture rates offered by thousands of lenders each business day.
Q: What should I compare when shopping for a mortgage?
A: Look beyond just the interest rate. Compare the Annual Percentage Rate (APR), closing costs, discount points, loan terms, and whether the rate is fixed or adjustable. Getting multiple quotes from different lenders can help you find the best overall deal.
References
- Today’s Mortgage Rates | November 12, 2021 — Money. 2021-11-12. https://money.com/todays-mortgage-rates-november-12-2021/
- Daily Mortgage Rates Keep Moving Lower | November 10, 2021 — Money. 2021-11-10. https://money.com/todays-mortgage-rates-november-10-2021/
- Today’s Mortgage Rates Move Higher | November 11, 2021 — Money. 2021-11-11. https://money.com/todays-mortgage-rates-november-11-2021/
- What Will Mortgage Rates and Home Prices Do in 2021? — Money. 2021. https://money.com/outlook-mortgage-rates-home-prices-2021/
- Mortgage Rates Are Rising. It’s Messing With Buyers’ Plans — Money. 2021. https://money.com/rising-mortgage-rates-spring-2021-home-prices/
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