Overview: How to Find the Best 30-Year Mortgage Rates

When you’re looking to buy a home and don’t have a large amount of cash on hand, financing a home is often your next best option.

One of the most common financing options on the market today is a 30-year fixed rate mortgage. These rates are common because it’s usually what people can afford at a predictable interest rate and payment, while giving them up to three decades to pay back their loans.

But how do you find the best 30-year mortgage interest rates?

Graphic of a blue house being over balanced by a blue percentage symbol on a balancing swing representing the high 30 year fixed mortgage rates on homes

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This 30-Year Fixed Mortgage Rates Guide aims to show you how to find the best 30-year mortgage rates that suit your needs. You’ll learn how to compare 30-year mortgage interest rates and how 30-year fixed mortgage rates trend.

You’ll also learn about currents trends for 30-year fixed mortgage rates today. Let’s explore what 30-year mortgage rates look like from the past and today, and how to find the best 30-year mortgage rates for you.

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What People Want to Know About Finding the Best 30-Year Mortgage Rates

A ladies eyes looking upwards with a chart behind her showing an increasing trend. The chart is surrounded in a house shape item representing the increasingly high 30 year mortgage rates

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If you think you’re the only one on a quest to find the best 30-year fixed mortgage rates today, you can be confident that you are not alone. There are a variety of questions on the Web that inquire about 30-year fixed mortgage rates. Here are a few concerns people have about 30-year fixed mortgage rates and how to find the best 30-year mortgage rates that suit their needs:

  • What are today’s 30-year mortgage rates?
  • How do I qualify for 30-year fixed mortgage rates?
  • What are the benefits of a 30-year fixed-rate mortgage?
  • Is it difficult to get a 30-year fixed-rate mortgage?
  • How do I compare today’s 30-year mortgage rates?
  • Should I use a 30-year mortgage rates chart to compare today’s 30-year mortgage rates?
  • Are there special 30-year mortgage rates for first-time homebuyers?

Benefits of a 30-Year Fixed-Rate Mortgage

There are several benefits to obtaining a 30-year fixed-rate mortgage. Here are a few advantages you can consider:

A 30-year fixed-rate mortgage is usually easier to understand than other types of mortgages.

This is because the math is straightforward. You pay a principal and an interest rate that you can expect to stay the same every year for the life of the loan.

You don’t have to have any surprises and unexpected mortgage expenses with 30-year fixed mortgage rates.

When you have mortgages, such as an adjustable rate mortgage, that have interest rates that fluctuate, it can be overwhelming to not know how much to expect to pay. For example, adjustable rate mortgages offer interest rates that can change on an annual basis. This strategy is good when you can pay interest at a low rate.

However, it is a disadvantage to pay this interest rate when it is high because you are losing more money. In contrast, 30-year fixed mortgage rates give you peace of mind because you are able to budget efficiently for interest rates you can predict.

You can lock in a low rate at the right time.

The other great factor to note about a 30-year fixed mortgage is that you’re able to take advantage of locking in a rate you are interested in for the life of the loan. Rather than having a low interest rate that adjusts every year or balloons after a certain number of years, 30-year mortgage rates that are fixed gives you consistency.

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Factors that Affect 30-Year Mortgage Rates

One important caveat to remember is that interest rates are usually affected by several factors. Whether you want to refinance your existing 30-year fixed-rate mortgage or you are looking for the best 30-year mortgage rates on the market today for a home purchase, it’s important to take note of these impacts. Here are a few items that can impact the interest of 30-year mortgage rates today:

The location of the home

Lenders can more readily assess the resale value of a property when it is in a location that has a large volume of homes or homes that often sell.

However, if you live or plan to live in a rural community with few homes, low land or property value, or with few home sales, then lenders that offer conventional mortgages may view the home as a risk. That is why homes that are located within metropolitan areas often can get better 30-year fixed mortgage rates in comparison to homes within rural communities.

The price of the home and the amount of the home loan

A black chalkboard with white words related to the center word of Mortgage which is written in a large font than the others. Some words are encircled but all relate to the 30 year fixed mortgage rates today

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Lenders often will present you with an offer that can be more than what you need to buy a home. You want to be careful to only borrow what you need because the price of the home can determine the amount of financing you need. These factors play an integral role in affecting today’s 30-year mortgage rates.

If the amount of the home price you are borrowing is too high or too low, you can expect to pay more in interest rates. Therefore, borrowing too little or too much will not give you the best 30-year fixed mortgage.

The amount of the down payment for the home purchase

You can get some of the most ideal 30-year fixed mortgage rates today when you put more money down on your home before you buy it.

That is because lenders view homebuyers who put more money down on their homes as less of a risk than people who do not and for good cause: If a borrower’s financial situation were to change in the future and funds are not as accessible, the lender will have more of the burden for the cost of the home.

However, paying more money upfront for a down payment alleviates some of that risk. Lenders then reward some of the associated cost savings to homebuyers by offering them a lower 30-year fixed rate mortgage.

The 30-year fixed mortgage applicant’s credit score

When you apply for a 30-year fixed mortgage, you will have to get a credit check. The lender must verify your creditworthiness to determine risks for taking on a 30-year fixed mortgage.

Better scores historically coincide with better payment histories. That is why lenders often offer the best 30 year mortgage rates to applicants with excellent credit scores. Therefore, the higher your credit score is, the better 30-year mortgage rates you can get.

The length of the loan

When you opt for a 30-year mortgage, you are opting to pay a lengthy loan term. This does not produce the lowest 30-year mortgage rates today because of the added risk that lengthy loan terms can bring, such as a change in income.

That is why some types of loans, such as adjustable rate mortgages, carry a lower interest rate than today’s 30-year mortgage rates. Therefore, the shorter the loan term is, the better the interest rate is.

The type of loan

There are different types of 30-year fixed mortgage rates on the market, including conventional, VA, and FHA home loans. The FHA home loans are designed to help potential homebuyers and homeowners who are low on income or cash or who may not have a good credit score to pay little down on their homes and have a fixed interest rate that usually is below market.

This government home loan is the same for all applicants regardless of other factors, so that all FHA home loan applicants are aware of what to pay each month. In contrast, 30-year fixed mortgage rates trend higher than FHA loans, but often can be paid off with less risk because they usually require more of a down payment.

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A Look at How 30-Year Fixed Mortgage Rates Trend

A screenshot of the 30 year fixed mortgage rates trend sourced by c2financialhomeloans.com

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One way to compare 30-year mortgage rates is to take a look into the past. You can do this by paying attention to how 30-year mortgage rates trend.

For example, one 30-year fixed mortgage rates trend to note within the last three years is a general decrease. There are a number of sources that can give you valuable insight on how 30-year mortgage rates trend, too. For example, you can find a 30-year mortgage rates chart at several financial websites, such as Bankrate.com.

30-Year Fixed Mortgage Rates Today

After looking at the past to see how 30-year fixed mortgage rates trend, you can have a better idea how to compare it with 30-year mortgage rates today.

Market rates change daily because they are based on several economic factors in addition to personal financial factors, such as the stock market. For example, the base 30-year mortgage rate has a difference of 0.09 percentage points, as of September 14, 2016, for the month of September.

That means that today’s 30-year mortgage rates for this month bottomed out as low as 3.35 percent and went as high as 3.44 percent.

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6 Tips on How to Find 30-Year Mortgage Rates Best for You

Tip #1: Shop around and compare different 30-year mortgage rates.

You never want to just go with the first 30-year mortgage rate offer you get. Buying a home is a huge financial responsibility that you don’t want to take lightly. That’s why it’s always a good idea to shop around and see what different lenders are offering for 30-year mortgage rates today.

Tip #2: Take a look at trends of 30-year mortgage rates and compare rates.

Taking a look into the past and comparing it to 30-year mortgage rates today can help you pick the best 30-year mortgage interest rates that suit your needs.

One way to do this is to by looking at today’s 30-year mortgage rates and comparing them on a 30-year mortgage rates chart. When you make comparisons, you are able to easily identify a 30-year fixed mortgage rates trend.

Tip #3: Create or keep track of a 30-year mortgage rates chart.

When you create a 30-year mortgage rate chart, you can keep your comparisons of the 30-year mortgage rates lenders are offering organized. You can create one using a database program, such as Microsoft Excel. The alternative is to follow a trusted source that provides access to a 30-year mortgage rates chart so you can keep up with the type of interest rates you should be expecting.

Tip #4: Make sure your credit score is up to par.

The most ideal 30-year fixed mortgage rates today for conventional loans depend on a number of factors, including your payment history and credit score. If you fall in the good and excellent credit range, you more than likely will be offered the best 30-year mortgage rates.

That is why it’s ideal to make sure you can get your credit score as high as possible before you buy or refinance a home.

Tip #5: Don’t overlook the fine print.

Make sure that you read all the terms listed in the fine print of your 30-year mortgage offer. You don’t want to be surprised with fees or upfront costs that you could have taken care of or negotiated at the start of the home buying process. There are costs beyond the interest rate and principal that you may have to consider if you have it rolled into your mortgage payments.

For example, if you pick a home that is in a community governed by a homeowners’ association, you will more than likely be expected to pay fees to the association to maintain the grounds or for amenity maintenance, such as a tennis court or swimming pool. Additionally, if you pay less than 20 percent down on your home, you can expect to pay a private mortgage insurance premium until you earn a specific amount of equity in your home.

Tip #6: Ask questions.

When you’re shopping for a home or looking to refinance your 30-year fixed-rate mortgage, it’s important to ask the right questions to determine if you are getting the best 30-year mortgage rates deal. Ask about any requirements or fees that appear unclear.

Also ask about how you and the lender will communicate during the life of the loan. Remember, the less surprises that you have to worry about when it comes to the interest rate of your home, the better you can manage your finances and budget for other expenses or financial goals you want to reach.

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Final Thoughts

When finding 30-year mortgage rates that suit your needs, don’t forget to shop around and compare what different 30-year mortgage rates lenders are offering.

Keep track of trends by using a 30-year mortgage rates chart, and keep your credit score up to par. By taking the steps noted in this guide, you’ll be on your way to finding ideal 30-year mortgage rates that meet your needs.

AdvisoryHQ (AHQ) Disclaimer:

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