Today’s 30-Year Mortgage Rates

Finding the best 30-year fixed mortgage rates for your next home loan can save you thousands of dollars over the course of your term. Your interest rate will determine how much you will pay each month and the amount of interest you’ll pay over the life of the loan, so minimizing your interest rate means you can maximize your savings.

Compare lender’s rates, loan processes, customer service reputations, and online accessibility to find the best home loan for you. We use SimpleScore to make editorial recommendations.

In this article

    Compare today’s 30-year mortgage rates

    According to Bankrate’s latest survey of the nation’s largest mortgage lenders, these are the current refinance average rates for a 30-year, 15-year fixed and 5/1 adjustable-rate mortgage (ARM) refinance rates among others.

    Product Interest Rate APR
    30-Year Refinance Rate3.160%3.360%
    30-Year FHA Refinance RateN/AN/A
    30-Year VA Refinance Rate3.140%3.330%
    30-Year Jumbo Refinance Rate3.200%3.260%
    20-Year Fixed Refinance Rate3.170%3.410%
    15-Year Fixed Refinance Rate2.620%2.830%
    15-Year Jumbo Refinance Rate2.630%2.670%
    10/1 ARM Refinance Rate3.180%3.960%
    5/1 ARM Refinance Rate3.180%4.100%
    5/1 ARM Jumbo Refinance Rate3.040%4.050%
    7/1 ARM Refinance Rate3.130%3.990%
    7/1 ARM Refinance Jumbo Rate3.090%3.980%

    Rates data as of 10/16/2020

    Best 30-year mortgage lenders in 2020

    LenderInterest Rate (APR)Minimum Down PaymentLender Fees
    WaterMark Home LoansNot listed3%Origination fee
    Better Mortgage Corporation3.000% (3.022%)3%No fees
    SoFiNot listed10%No fees
    Reali Loans3.431% (3.375%)5%No fees
    Chase2.821% (2.750%)3%Origination fees

    *The interest rates are based on a 30-year fixed mortgage for a $300,000 single-family primary residence home with a $60,000 down payment for a borrower with a good to excellent credit score.

    Best for low interest rates – Watermark Home Loans

    While WaterMark’s 30-year mortgage loan has a low interest rate, you’ll have to pay an origination fee for starting the loan with them.

    J.D. Power Rating
    N/A
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    4 / 5.0
    close
    SimpleScore Watermark Home Loans 4
    Perks 3
    Credit Impact 5
    Customer Satisfaction N/A
    Product Variety 4
    Fees 4

    Based in California, WaterMark Home Loans is a national lender that not only survived the financial crisis but expanded its services between 2006 and 2008. It provides a full lineup of loan products, from conventional loans to those backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). It offers a no obligation quote, rate locks that range from 15 to 60 days and the chance to secure a lower interest rate should one become available.

    Best for transparency – Better Mortgage Company

    Better Mortgage is 100% online, available 24/7 via email or phone, and is completely transparent about the process instead of making you ask questions about fees and rates.

    J.D. Power Rating
    N/A
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    3.8 / 5.0
    close
    SimpleScore Better Mortgage Company 3.8
    Perks 2
    Credit Impact 5
    Customer Satisfaction N/A
    Product Variety 3
    Fees 5

    Priding itself on using technology to clarify the loan application process, Better Mortgage offers a sleek and fast digital mortgage service that promises a transparent experience. It boasts a “support not sales” belief backed up by a zero commission policy for its loan officers, ensuring they are looking out for your best interests. With a focus on user friendliness, no origination fees, down payments as low as 3% and a 3.000% starting interest rate, Better Mortgage is a good option for buyers who prioritize low rates along with a focus on honest, clear-cut service.

    Best for 100% online loan process – SoFi

     Sofi is great if you want an online mortgage process, but you’ll need a minimum 10% down payment.

    J.D. Power Rating
    N/A
    Min. Credit
    660
    Min. Down Payment
    10%
    SimpleScore
    3.5 / 5.0
    close
    SimpleScore SoFi 3.5
    Perks 2
    Credit Impact 5
    Customer Satisfaction N/A
    Product Variety 3
    Fees 4

    As one of the pioneers of the online first mortgage lending industry, Sofi focuses on providing its clients with flexibility and convenience. Abbreviated from “Social Finance,” SoFi takes a non-traditional approach to its loan approval process. It looks at a broader picture, considering an applicant’s professional and bill payment history when determining if they are approved and what rates they can get. It offers a competitive 30-year fixed mortgage rate and has a 100% online application to enable a quick and hassle-free application.

    Best for saving on fees – Reali

    Reali Loans really offers no fees on its mortgages as well as a low interest rate.

    J.D. Power Rating
    N/A
    Min. Credit
    620
    Min. Down Payment
    10%
    SimpleScore
    4.3 / 5.0
    close
    SimpleScore Reali 4.3
    Perks 3
    Credit Impact 5
    Customer Satisfaction N/A
    Product Variety 4
    Fees 5

    In addition to having competitive interest rates that start at 3.431%, Reali Loans cuts out what the industry dubs “junk fees.” Known as Lenda prior to its 2019 rebrand, the company utilizes a flat-fee model to help its clients avoid broker and origination charges. True to that promise, Reali also provides a robust explanation and guide for fees out of its control, such as pest inspection bills or homeowners association fees, on its website. This is a great option for those who live in the service area and want to keep their overall mortgage costs down — and who doesn’t want to do that?

    Reali’s loan service is currently available in a few states (Arizona, California, Colorado, Florida, Georgia, Illinois, Michigan, Oregon, Pennsylvania, Texas, Virginia and Washington).

    Best for in-person and online service – Chase

    Chase provides excellent customer service both online and in person, and has great 30-year mortgage rates.

    J.D. Power Rating
    3/5
    Min. Credit
    620
    Min. Down Payment
    3%
    SimpleScore
    3.8 / 5.0
    close
    SimpleScore Chase 3.8
    Perks 4
    Credit Impact 4
    Customer Satisfaction 3
    Product Variety 5
    Fees 3

    Chase provides homebuyers with a large array of purchase options, including a 30-year fixed mortgage with interest rates as low as 2.821%. As an applicant, you can submit your loan documents online using the convenient platform, or if you prefer in person service, you can speak to a Chase representative either on the phone or at a local branch. This is a great option for people who want the option of interacting with their loan provider online or in person without sacrificing a competitive interest rate.

    What is a 30-year mortgage?

    A 30-year mortgage is a home loan with a 30-year term and fixed interest rate so payments remain the same throughout the entire life of the loan. The 30-year term offers homeowners lower monthly payment amounts than the other popular mortgage term of 15 years, as the loan amount is spread out over a longer repayment period. You get more home affordability with a 30-year mortgage.

    A 30-year fixed mortgage rate often starts out at a higher interest rate than the adjustable rate or 15-year alternatives. Fixed rates never change over the life of the loan while adjustable rates do, often resulting in a fixed-rate loan costing less when comparing the two in the long run. The term of 30 years is also popular because even though it costs the homebuyer more in interest, the monthly payments are cheaper, making homeownership possible.

    [Read: 17 Things to Know Before Buying Your First Home]

    How 30-year mortgages work

    A 30-year fixed mortgage loan gives you 360 total payments made monthly over the 30-year term of the loan. The total cost of your new house is spread out over 30 years of payments, but will end up paying more in interest over the long term. You will also get a higher interest rate with the 30-year mortgage than you would with shorter mortgage terms, like 15- or 10-year mortgage. But if you buy your home in your 20s or 30s, and pay every month on time, you’ll have your home paid off by your 50s or 60s so you can enjoy your retirement without a monthly mortgage payment.

    When you choose a 30-year mortgage you can decide between a fixed-rate or an adjustable rate loan. A fixed rate means your interest rate will stay the same no matter what, whether mortgage interest rises or falls. This can save you money if the rate increases, because the fixed rate will always stay the same. However, you can save money if you have an adjustable rate mortgage and the rate decreases. The safer and more secure option is the fixed rate mortgage because we never really know what will happen with mortgage interest rates. Your monthly mortgage payment could skyrocket to a price you can’t pay if the interest rate goes up on your adjustable rate loan. Most people prefer the predictability and stability of a fixed rate loan.

    [Read: How to Find the Best Mortgage Rates]

    Historical 30-year rates

    Freddie Mac shows that historical 30-year mortgage rates have been the lowest they have ever been. The current average 30-year fixed rate mortgage rate is 2.91% (September 2020), which we don’t see in any of the previous months going back to 1972. It is a great time to secure a 30-year fixed rate mortgage for your home before rates increase again. The lower interest rates could be tied to COVID-19 because millions of Americans have been unemployed due to stay at home orders to stop the spread of the virus. Without a stable income, people are wary about buying a new home, notes The Poynter Institute. We might see an increase in the mortgage rates when the majority of Americans start going back to work.

    [Related: Now Is the Best Time in 50 Years to Refinance Your Mortgage]

    30-year vs. 15-year mortgage

    The downside to a 30-year mortgage versus a 15-year mortgage is that you are going to pay more in interest over the term of the loan, thousands more. But a 30-year mortgage is better if you want more home affordability than you would get with a 15-year mortgage. Plus, the monthly mortgage payments will be lower since you’re spreading them out over 360 months versus 180 months.

    For example, let’s say you get a $300,000 home loan with a 30-year mortgage and 3.23% interest. You’re going to end up paying a total of $468,838 on that loan. That’s $168,838 in interest alone. That’s over half of the original price! Let’s take that same $300,000 home and finance it with a 15-year loan at 2.86% interest. You’ll pay a total of $369,289, making your total interest cost $69,289. That’s a savings of $99,949 over the term of the loan.

    However, the upside to the 30-year mortgage is that your monthly payments with these calculations would be $1,302 versus the much higher 15-year monthly mortgage payment of $2,052. So, if you don’t have a higher income to be able to afford the two thousand dollar plus monthly payments, the 30-year mortgage is a much better alternative.

    You’ll also be able to buy a more expensive home with a 30-year mortgage than you would with a 15-year mortgage, since the monthly payments are about twice as much with the 15-year loan. So, while your home affordability might be, for example, $250,000 with a 15-year mortgage, you could get a $450,000 home with a 30-year mortgage.

    [Related: 30- or 15-Year Mortgage: Which Is Right for You?]

    Pros and cons of a 30-year mortgage

    Pros

    • Lower monthly payment
    • More home affordability
    • Larger monthly budget

    Cons

    • More interest cost over term of loan
    • Longer to pay off loan
    • Higher interest rates

    How to find the best 30-year mortgage for you

    1. Determine how much house you can afford before you do anything else. This will be different for everyone depending on total income, expenses, and debts. However, no one should pay more than 25% of their total monthly income on a mortgage, including you.
    2. Locate a lender with a low interest rate on 30-year mortgages. A low interest rate isn’t the only reason to choose a certain lender, but it can help you save thousands on your loan over time.
    3. Figure out your down payment. Save as much as you possibly can for the down payment on your home since it will save you on interest costs later in the loan. Check with the lender’s minimum down payment.
    4. If you can’t save much for your down payment look for a lender that has a low or zero minimum down payment.
    5. Check the fees. Mortgage fees can sneak up on you. Fortunately, some mortgage lenders are transparent about their fees or don’t charge any fees. Make sure you ask for a list of mortgage related fees from your loan officer.
    6. Be prepared for your closing costs. Estimate what yours will be now before you go any further.
    7. Check out what your lender’s J.D. Power score is so you can find one with excellent customer service. You’ll also want to note when and how you can contact your loan officer.

    Mortgage FAQs

    According to FICO, if you have a low credit score (620–639), your 30-year mortgage payments for a $200,000 home will be (on average) $1,010 per month with a 4.468% interest rate. If you have a high credit score (760–850), your 30-year mortgage payments for that same $200,000 home will be $830 with a 2.87% interest. That’s a savings of $64,916 in interest alone.

    Your down payment depends on the minimum down payment required by the lender, but most require 20% to avoid mortgage insurance and as little as 3% for federal loan programs. However, you’ll pay less in interest over the term of your loan when you make a higher down payment.

    It all depends on your personal financial situation. Buying a home is an incredibly personal decision. It’s a good time to take out a 30-year mortgage if you have good credit and have saved enough for a down payment.

    The impact of COVID-19 on your mortgage rates.

    The real estate market is changing. To stimulate the economy, the Federal Reserve made two mortgage rate cuts in March and another one in February, setting a federal fund rate to a range of 0% to 0.25%.

    Today rates on fixed-rate mortgages are at a record low. People shopping for new homes should consider that although lower rates boost mortgage financing, the supply is limited and hard to lock down. Those who can reach a deal and lock in the current interest rate can look into lender’s options for seven-day locks, which can reduce borrowing costs.

    Lenders and banks like Bank of America and Navy Federal Credit Union are also offering hardship forbearance to borrowers facing financial troubles due to COVID-19. And although forbearance isn’t forgiveness, the temporary basis has helped close to 4 million American borrowers as of May.

    Methodology

    SimpleScore

    We’ve created the SimpleScore to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore

    We break down each of these five factors and their rating criteria for our review of the best mortgage companies.

    Why do some brands have different SimpleScores on different pages?

    Some brands like Bank of America, Wells Fargo, and Chase have different SimpleScores because they offer more than one financial solution — like home loans, auto loans, personal loans and more.

    For instance, in our Bank of America Mortgage Review, we give the company a 3.8 out 5 based on our five rating factors for mortgages. In our Bank of America Auto Loans Review, we give the company a 4.4 out of 5 based on our rating factors for auto loans. By tailoring our SimpleScore to each financial solution, we’re able to give you a more accurate view of a brand’s services and how it compares to competitors’ services.

    Perks

    Mortgage lending companies that provide more perks receive a higher score from us.

    Hard/Soft credit checks

    We know that credit checks affect your score –– that’s why we favor companies that offer soft credit checks or hard credit checks when you want to see your pre-approval rates.

    Customer satisfaction

    We use the J.D. Power 2019 Mortgage Origination Satisfaction Study℠ to find out how customers rate their experience with each company. (If a company is not included in J.D. Power’s study, we skip this rating factor and average the remaining factor scores.)

    Product variety

    Mortgage lenders that offer more products for their home loans are given higher scores.

    Fees

    Fees can add up fast. Companies that don’t require as many fees for your home loan receive a higher score with us.

    Nicky LeMarco

    Contributing Writer

    Nicky LaMarco is a business and finance writer who has written for Interest, Bizfluent and Houston Chronicles.

    Reviewed by

    • Courtney Mihocik
      Courtney Mihocik

      Courtney Mihocik is an editor at The Simple Dollar who specializes in insurance, personal finance, and loans. Previously, she wrote and edited for Interest.com, PersonalLoans.org, Ballantyne Magazine, Thread Magazine, The Post, ACRN, The New Political, Columbus Alive and the Institute for International Journalism.