Today’s Mortgage and Refinance Rate: May 29, 2021

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Mortgage and refinancing rates have mostly increased or remained stable since last Saturday and since last month. It might be a good day to seek pre-approval and lock in a low mortgage rate.

You may want to get a fixed rate rather than an adjustable rate. Fixed rates start a lot lower than adjustable rates these days. You would also risk increasing your rate later with an ARM, while a fixed rate mortgage locks in your rate for the duration of your loan.

Money.com conventional rates; RedVentures government guaranteed rates.

Find out more and receive offers from several lenders »

Current mortgage rates are low across the board, and the lowest is the 15-year fixed rate.

The rates for conventional mortgages, which you might think of as “regular mortgages”, are already low. But you can often get an even lower rate with a government-backed mortgage through the FHA or the VA, depending on how long you want. Government mortgages are solid options if you are eligible.

Money.com conventional rates; RedVentures government guaranteed rates.

Compare the offers of refinancing lenders »

Refinance rates tend to be higher than purchase mortgage rates, but current rates are generally low.

Mortgage rates are at all time lows, so this could be a good day to set a rate.

But rates should stay low for a few more months, so you don’t need to rush if you’re not ready to buy or refinance yet. You may have time to improve your finances which will earn you a better rate.

Here are some ways to improve your financial situation:

  • Improve Your Credit Score by paying all your bills on time. Aggressively paying off your debts could also help you score points.
  • Save more for a down payment. The smallest down payment you need depends on the type of mortgage you want. Lenders often offer better rates if you have more than the minimum.
  • Lower your debt ratio. Your DTI ratio is the amount you pay for debt each month divided by your gross monthly income. Many lenders want you to have a DTI ratio of 36% or less (although this depends on the type of mortgage loan). To improve your ratio, pay off your debt, or consider ways to earn more money.

You can get a low mortgage rate if your finances are strong and you probably have time to make improvements and get a better rate.

Mortgage rate trends

The 7/1 ARM and 30-year FHA rates have risen since last Saturday, but all other mortgage rates have remained stable or have fallen. All mortgage rates have remained the same or have fallen since last month as well.

Evolution of refinancing rates

Most refinance rates have risen since last Saturday, and half of the rates quoted have risen since that time last month.

A 15-year fixed mortgage locks in your rate for the 15 years you spend paying off the loan

Monthly payments are higher with a 15-year term than with a 30-year term because you pay off the same mortgage principal in half the time.

But 15-year mortgages cost less than longer terms in the long run because you’ll pay a lower rate for a shorter period.

With a 30-year fixed mortgage, you’ll pay off your loan over 30 years and lock in your interest rate for the duration.

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

But it will cost you more in interest with a 30-year term than with a 15-year term because you are paying a higher interest rate for longer.

A variable rate mortgage, commonly known as an ARM, will set your rate for a predefined period. Then your rate will fluctuate periodically. A 10/1 ARM keeps your rate constant for a decade, then your rate will vary each year.

You may want a fixed rate mortgage on an ARM, even though ARM rates are now at historically low levels. 30-year fixed rates are lower than ARM rates, so this might be a good time to lock in a low rate with a fixed mortgage. Plus, you don’t risk increasing the ARM rate down the line.

If you are considering getting an ARM, talk to your lender about your rates if you are choosing a fixed rate mortgage over an adjustable rate mortgage.

We also provide rates for FHA and VA home loans, two types of government guaranteed mortgages.

Government mortgages are backed by government agencies. The government pays the lender if you don’t make mortgage payments.

Government guaranteed home loans are less risky than conventional mortgages, so lenders have more lenient demands on your credit score, debt-to-income ratio, or down payment. Government mortgages also come with lower interest rates. These mortgages can be great deals if you qualify. Here are your options:

  • FHA Mortgage: FHA loans are primarily intended for people with lower credit scores. But these mortgages are not limited to a certain type of person like VA and USDA loans.
  • VA Mortgage: You may be eligible if you are an active military or veteran.
  • USDA Mortgage: You may qualify if you live in a rural area and fall under a certain income limit.

Mortgage and refinancing rates by state

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

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
new York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
Caroline from the south
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming

About the authors

Laura Grace Tarpley is a writer at Personal Finance Insider, which covers mortgages, refinancing, and loans. She is also a certified personal finance educator (CEPF). In her five years of covering personal finance, she has written extensively on how to navigate loans.

Ryan Wangman is a reviewer at Personal Finance Insider, which reports on mortgages, refinancing, bank accounts, bank reviews, and loans. As part of his past personal finance writing experience, he has written on credit scores, financial literacy, and property.


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