As we continue to look at the best rates available right now for a variety of financial products, we turn to mortgages for today’s topic. The best mortgage rates aren’t always what you’ll be offered, so it pays to shop a little and see what’s available so you can at least have a bargaining tool. So today on Peak Personal Finance, we’ll look at the best mortgage rates nationally, right now.
For reference, we’ll assume a good credit score (FICO over 720) and a 15-20% down payment on the loan. We’ll focus on 30-year and 15-year fixed rate loans, but will show a couple of 5/1 and 3/1 adjustable rate mortgages (ARM) loans for reference. These annual percentage rates (APR) will not include any fees or closing costs, of course.
National Averages for Mortgage Rates
Before we look at the best home loan rates, let’s look at the national averages right now for reference:
30-year Fixed: 5.03% APR
15-year Fixed: 4.70% APR
5/1 ARM: 4.71% APR
3/1 ARM: 4.70% APR
Best 30-year Fixed Mortgage Rates
The best offers right now are from AimLoan.com, who’s showing a fixed 4.65% APR under our assumptions. This is a 1.963 discount on points based on qualifying credit.
The next best mortgage rates are from Quicken Loans, who are giving a 5.117% APR with a 1.750 discount, but with lower fees than AimLoan by about $300.
The third best mortgage rates are at Wells Fargo Bank with a 4.983% APR, but no discount and substantially lower fees. Because of the discount difference, the monthly payment would be higher, so we ranked this one below Quicken.
Best 15-year Fixed Mortgage Rates
AimLoan is still tops for 15-year rates, with 4.57% APR and 0.913 points discount given.
Wells Fargo is also on the list, this time in second best mortgage rates of 4.812% APR, but with no points discount. Fees are substantially lower (nearly $1,600 less), however.
Finally, U.S. Bank has a 5.013% APR with no discount and standard fees.
Wrapping Up the Best Mortgage Rates
As you can see, nationally there’s a lot of leeway in mortgage offers and rates. Check locally to see if there are better deals in your area (there likely are). Also remember that ARM loans usually go up rather than down, so a 5/1 or 3/1 at 4.60% APR might jump to 7% when the fixed period is over.
I am in the beginning process of considering home buying, so rates research is definitely in my future. Thanks for the info!
~ Kristi