• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The College Investor

Student Loans, Investing, Building Wealth

  • About
  • Podcast
  • Research
  • Contact
  • Save For College
      • How To Start

      • How To Save For College
      • How To Pay For College
      • What Is the Average Cost of College?
      • What Is A 529 Plan and Where to Open One in Your State
      • How Much Should You Have In A 529 Plan By Age
      • How To Use A 529 Plan For Private Elementary And High School
      • What Are Qualified Expenses For A 529 Plan (And What Doesn’t Count)?
      • The Best Brokers To Open A 529 Plan
      • Tools + Accounts

      • 529 Plans: The Ultimate College Savings Plan
      • 529 Plan Contribution Limits
      • Prepaid Tuition Plans | What To Know
      • Understanding And Using 529A ABLE Accounts
      • Using A Roth IRA To Save And Pay For College
      • FAFSA Deadlines for Financial Aid
      • CollegeBacker Review
      • Upromise Review
      • UNest Review
      • Other Options

      • Student Loan And Financial Aid Programs By State
      • The Guide To Military And VA Education Benefits
      • How To Fill Out The FAFSA
      • How To Find College Scholarships
      • The Best College Scholarship Search Websites
      • How To Find Grants To Pay For College
      • Pell Grants: What They Are And How To Qualify
      • Understanding Federal Work-Study
      • How To Use A 529 Plan If Your Child Doesn’t Go To College
  • Student Loans
      • Borrowing

        • How Student Loans Work
        • How To Apply For A Student Loan
        • How To Find The Best Student Loans And Rates
        • Best Private Student Loans Of June 2022
        • Best Student Loans To Pay For Graduate School
        • Best Student Loans To Pay For Medical School
        • Parent Loans To Pay For College
        • No-Cosigner Student Loan Options
        • Guide To Income Sharing Agreements (ISAs)
        • Best International Student Loans
      • Get Out Of Debt

        • Best Places To Refinance Student Loans In June 2022
        • Best Student Loan Repayment Plans
        • Best Student Loan Refinancing Bonuses And Promotional Offers
        • Student Loan Forgiveness Programs (The Complete List)
        • The Full List Of Student Loan Forgiveness Programs By State
        • Public Service Loan Forgiveness (PSLF)
        • Top Student Loan Scams
        • Average Student Loan Monthly Payment
        • Average Student Loan Debt By Year
      • Reviews

        • Credible Review
        • Splash Review
        • Ascent Review
        • Citizens Bank Review
        • Commonbond Review
        • Earnest Review
        • ELFI Review
        • Laurel Road Review
        • LendKey Review
        • SoFi Review
  • Investing
      • How To Start

        • How To Start Investing in High School
        • How To Start Investing In College
        • How To Start Investing In Your Twenties For 22 – 29 Year Olds
        • How To Start Investing In Your 30s For 30 – 39 Year Olds
        • How To Start Investing With $100 Or Less
        • How To Give Kids The Gift Of Stock
        • What Is Dividend Growth Investing
        • IRA Rollover Chart
      • Tools + Accounts

        • Best Online Stock Brokers
        • The Best Traditional And Roth IRA Accounts
        • The Best Robo-Advisors
        • The Best Investing Apps
        • The Best Places to Trade Options
        • The Best Places To Open A Health Savings Account
        • The Best Solo 401k Providers
        • The Best Self-Directed IRA Providers Of 2022
        • Best Cryptocurrency Exchanges
      • Reviews

        • Vanguard Review
        • Fidelity Review 2022: Still One Of The Best Online Brokers
        • M1 Finance Review
        • TD Ameritrade Review
        • Charles Schwab Review
        • Robinhood Review
        • Webull Review
        • Betterment Review
        • Wealthfront Review
  • Earn More Money
      • Extra Income

        • 15 Best Side Hustles You Can Start Earning With In 2022
        • 53 Side Hustle Ideas To Make Extra Money
        • 100 Ways To Make Money In College
        • 80 Ways To Make Money From Home (In Your Pajamas)
        • 5 Quick Money Making Ideas (That Take Less Than 1 Hour)
        • 10 Interesting Ways You Can Make Money Driving
        • High-Paying Side Gigs That Earn $1,000 or More Per Month
        • The 10 Best Money-Making Apps
        • Paid Surveys: Earn Money For Giving Your Opinion Online
        • 10 Crazy Ways To Make $10,000 You’ve Never Heard Of
      • Build Wealth

        • 35 Passive Income Ideas You Can Use To Build Wealth In 2022
        • 3 Ways To Make $50,000 Per Year Without Working With Passive Income
        • How To Become A Real Estate Investor With Just $500
        • 15 Best Online Business Ideas
        • How to Create Streams of Passive Income on a Limited Budget
        • Residual Income: 7 Super Smart Ways to Build It
        • The Most Common Multiple Income Streams
        • How To Become A Real Estate Mogul With Only $10,000
      • Reviews

        • Fundrise Review
        • RealtyMogul Review
        • FarmTogether Review
        • AcreTrader Review
        • Swagbucks Review
        • Survey Junkie Review
        • TopCashback Review
        • DoorDash Review
  • Personal Finance
      • Banking

        • Best High Yield Savings Accounts Of June 2022
        • 10 Best Money Market Accounts Of June 2022
        • 10 Best Free Checking Accounts In June 2022
        • The Best Bank CD Rates Of June 2022
        • 10 Best Business Checking Accounts In June 2022
        • The Best Online Banks Of June 2022
        • 5 Best Credit Unions Nationwide Of June 2022
        • Best College Student Checking Accounts In June 2022
      • Insurance

        • Best Life Insurance Companies
        • Renters Insurance
        • Car Insurance
        • Pet Insurance
        • Umbrella Insurance
        • Disability Insurance
        • Tuition Insurance
        • Travel Insurance
      • Credit Tools

        • Best Budgeting Apps
        • Cash Advance Apps
        • How To Get A Free Credit Score Report
        • The Best Credit Monitoring Services
        • Debt Settlement: Inside The Secret World
        • Credit Repair Explained: Should You Pay For Help?
        • Best Personal Loan Companies And Lenders
        • Online Loan Companies To Borrow From Home
      • Tax

        • Best Tax Software
        • Free Tax Software
        • IRS Tax Refund Calendar
        • Common IRS Questions and Errors
        • Federal Tax Brackets
        • Capital Gains Tax Brackets
        • 401k Contribution Limits
        • IRA Contribution Limits
        • HSA Contribution Limits
  • Forum
  • Search
Home » Loans » Home Loans » Rates » Today’s Interest Rates and Finding the Best Mortgage Rates

Today’s Interest Rates and Finding the Best Mortgage Rates

Updated: August 25, 2021 By Robert Farrington

Tweet
Share
Share
Pin
Email

At The College Investor, we want to help you navigate your finances. To do this, many or all of the products featured here may be from our partners. This doesn’t influence our evaluations or reviews. Our opinions are our own. Learn more here.Advertiser Disclosure

There are thousands of financial products and services out there, and we believe in helping you understand which is best for you, how it works, and will it actually help you achieve your financial goals. We're proud of our content and guidance, and the information we provide is objective, independent, and free.

But we do have to make money to pay our team and keep this website running! Our partners compensate us. TheCollegeInvestor.com has an advertising relationship with some or all of the offers included on this page, which may impact how, where, and in what order products and services may appear. The College Investor does not include all companies or offers available in the marketplace. And our partners can never pay us to guarantee favorable reviews (or even pay for a review of their product to begin with).

For more information and a complete list of our advertising partners, please check out our full Advertising Disclosure. TheCollegeInvestor.com strives to keep its information accurate and up to date. The information in our reviews could be different from what you find when visiting a financial institution, service provider or a specific product's website. All products and services are presented without warranty.

interest rates

The mortgage interest rate you pay is going to be one of the biggest factors in your monthly payment (second, of course, to your loan amount). Depending on the loan amount and interest rate, even saving 0.25% can equate to $20,000 or more in savings over the life of the loan.

That's why it's so important that you spend a little time and focus on finding the best mortgage rates. And it can be daunting - but the easiest thing you can do is simply shop around. 

Just education yourself on things like origination fees, lender charges, and more, then compare apples-to-apples loan options. 

With that in mind, here's where you can find the best mortgage rates and lenders (and seriously - don't just take our word for it, shop around)!

Table of Contents
Best Mortgage Rates
What Determines Mortgage Rates?
Which Fees Are Involved?
Fixed vs. Adjustable Rates
How to Know If You Are Getting a Good Deal?

Best Mortgage Rates

Check out our list of the best online mortgage lenders here to get started on your rate hunt. We recommend using Credible Mortgage* as a good starting point, because unlike other comparison tools, you can do everything online (and you won't get bombarded with 100+ phone calls). Check them out here >>

What Determines Mortgage Rates?

A lot goes into the final mortgage rate that you’ll get from a lender.

Some people try to create a relation between 30-year fixed rates and the 10-year Treasury bond. That isn’t so straightforward. As the 10-year yield went down this year, the 30-year mortgage went up.

Instead of looking at economic factors that affect mortgage rates, we’ll discuss them in terms of individual rates.

When a lender is determining a mortgage rate, they look at several factors specific to the borrower. As reported by consumerfinance.gov, these include:

  • Credit scores: As with any kind of borrowing, credit scores are king. The higher your score, the lower your rates, and the more lending opportunities that will come your way.
  • Home location: The state and neighborhood where the house is located also play a role in the kind of loan you might get. Remember, with real estate, it’s all about location, location, location.
  • Home price and loan amount: If you’re trying to buy more home than you can afford, approval of the loan is unlikely. Once you’ve found an affordable home, the home price plus loan fees minus your down payment is the amount the loan will be approved for.
  • Down payment: The greater the down payment you have, the higher your chances of getting a loan approval and the less interest you’ll pay. Your monthly note will be less as well.
  • Loan term: This is the duration of your loan. A 30-year loan will have lower monthly payments than a 15-year loan at the same rate. But you’ll also pay more in interest.
  • Interest rate type: fixed or adjustable.
  • Loan type: There are several loan types, and not everyone qualifies for them. These include traditional, FHA, USDA, and VA loans.

Another important factor not mentioned by consumerfinance.gov is your income-to-debt ratio. This ratio looks at how much your income is vs. how much is being paid to debt. It’s a quick way to determine if you are able to take on any additional debt. Most lenders want to see a ratio of 0.40 or lower.

Which Fees Are Involved?

Fees vary by lender. Some of the most common fees include:

  • Closing: These are usually some form of processing and underwriting fees. Expect a few thousand dollars in cost.
  • Points: This is a method for reducing your interest rate. It’s an upfront cost that pays for itself over time. You can discuss with your lender how much time that may involve. If you are going to be in the home for less than the time it takes for the points to pay off, you might want to avoid points.
  • Origination: This is similar to an application fee.
  • Title and escrow: This is for conducting title search and related insurance. Escrow fees are related to holding earnest money.
  • Credit report: This is a small charge for pulling your credit report.
  • Inspection: This is paid by you as one of the first fees. It is often a few hundred dollars.
  • Mortgage insurance: This usually rolls into your monthly escrow payment.
  • Broker: If you are working with a real estate broker, they will take a percentage fee based on the final selling price.

Fixed vs. Adjustable Rates

30-year, fixed-rate mortgages allow you to spread your loan out over a longer period of time, which reduces your monthly payment. For this convenience, you’ll pay more interest over the life of the loan.

If you want to pay less in interest but don’t want the interest rate to change, a 15-year, fixed-rate mortgage is your best option. These mortgages will have a higher monthly payment because you are cutting the loan term in half compared to a 30-year mortgage. A 15-year fixed also generally approves for a lower amount (i.e., a smaller loan).

Note that paying a 30-year, fixed-rate mortgage like a 15-year (double the monthly payment), assuming both have the same interest rate, works out to about the same savings in interest as if you had a 15-year, fixed-rate mortgage.

Finally, there is the adjustable-rate mortgage, or ARM. ARMs come with different terms and their rates change during the term. There is usually a fixed-rate period, but thereafter, the ARM can begin adjusting its rate up or down. This will cause your monthly payment to fluctuate. If rates rise significantly, so will your monthly payment.

How to Know If You Are Getting a Good Deal?

Like any purchase, shopping different lenders will give you a good idea of the rate you’re likely to receive. Besides the rate, also factor in other terms such as the points offering, if the lender is easy to deal with, and what kind of reputation the lender has. Also, consider the various fees — you may be able to find a wide discrepancy between different lenders.

In the end, finding a good mortgage rate is simply a lot of time on the phone getting questions answered, submitting documents, and waiting on other people.

* Credible Operations, Inc. NMLS ID# 1681276, 318 Blackwell Street Ste 120A, Durham, NC 27701

Robert Farrington
Robert Farrington

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comment Policy: We invite readers to respond with questions or comments. Comments may be held for moderation and are subject to approval. Comments are solely the opinions of their authors'. The responses in the comments below are not provided or commissioned by any advertiser. Responses have not been reviewed, approved or otherwise endorsed by any company. It is not anyone's responsibility to ensure all posts and/or questions are answered.
Subscribe
Connect with
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Primary Sidebar

Robert Farrington will teach you how to get out of student loan debt and how to start investing.

Hi! My Name is

America's Millennial Money Expert

Welcome to The College Investor. We're here to help you escape student loan debt so you can start investing and building wealth for the future

Our expert guides, reviews, and more are designed to help you achieve your financial goals.

Want to learn more? See what's in my wallet.

As Featured In

Social Media

Popular Posts

Side Hustling

53 Side Hustle Ideas To Make Extra Money

Best Side Hustles

15 Best Side Hustles You Can Start Earning With In 2022

Make Money From Home

80 Ways To Make Money From Home (In Your Pajamas)

Crazy Ways To Make $10,000

10 Crazy Ways To Make $10,000 You’ve Never Heard Of

Make $50,000 Per Year

3 Ways To Make $50,000 Per Year Without Working With Passive Income

Student Loan Scams

Top Student Loan Scams

Net Worth of Millennials

Average Net Worth Of Millennials By Age

Ways To Get Student Loan Forgiveness

Student Loan Forgiveness Programs (The Complete List)

Passive Income Ideas

35 Passive Income Ideas You Can Use To Build Wealth In 2022

529 Plan By Age

How Much Should You Have In A 529 Plan By Age

Ultimate Guides

529 Plan Guide

529 Plans: The Ultimate Guide To College Savings Plans

Student Loans and Financial Aid By State

Student Loan And Financial Aid Programs By State

Student Loan Advice

The Definitive Guide To Student Loan Debt: Everything To Know About Your Loans

Student Loan Forgiveness By State

The Full List Of Student Loan Forgiveness Programs By State

newretirement

How to Start Saving Now: The College Graduate’s Guide to Saving for Retirement

Latest Research

Institutional Merit Grants

Who Gets Institutional Merit Grants At Private Colleges?

Resume Student Loan Payments

Survey: Even With Higher Expenses, Most Student Loan Borrowers Are Ready To Resume Payments

Support From Parents Survey

64% Of Millennials Receive Support From Their Parents

undermatching at selective colleges

Undermatching: Why Do Smart Low-Income Students Not Enroll In Selective Colleges?

How Much Americans Pay To File Their Taxes

How Much Americans Pay To File Their Taxes

Footer

Who We Are

The College Investor is an independent, advertising-supported publisher of financial content, including news, product reviews, and comparisons.

Connect

  • Contact Us
  • Advertise
  • Press & Media

About

  • About
  • Our Team
  • Podcast
  • Editorial Guidelines
  • How We Make Money
  • Archives

Social

Copyright © 2022 · The College Investor · Privacy Policy ·Terms of Service · DO NOT Sell My Personal Information

wpDiscuz