Current 30-year mortgage rates

Mortgages commonly have 30- or 15-year repayment terms, with many lenders offering both options. Each repayment term has its benefits and drawbacks, and the right option for you depends on your financial situation, goals and budget. 

Here’s a look at 30-year mortgages, current rates, how fixed- and adjustable-rate options compare, and tips for finding the best lender. 

Pros and cons of a 30-year mortgage

With a 30-year home loan, you’ll typically pay more interest compared to a mortgage with a shorter term. That’s because you’re paying down your debt over a longer period. But there are upsides to this option.

“A lower, fixed monthly cost would be the No. 1 reason to go with a 30-year mortgage instead of a 15-year,” says Ted Guarnero, realtor at DreamWorks Real Estate. 

There are even ways to lower your interest costs with a 30-year term. “If you make one additional payment per year, [you’ll pay off your loan several years sooner] without the obligation of a higher monthly payment,” Guarnero says.

PROS	CONS
Lower monthly payments than a 15-year	Higher interest costs over the life of the loan
Save more money for other financial goals	Rate will likely be higher than a 15-year loan
Predictable payments with fixed option	Building equity is more difficult

See MoreSee Less

30-year fixed-rate mortgage vs. ARM

When you opt for a 30-year mortgage, you can generally choose between a fixed or adjustable interest rate. As its name suggests, fixed-rate loans come with a mortgage rate that doesn’t fluctuate; thus, your monthly payments won’t change. Set payments can be convenient for budgeting purposes. 

An adjustable-rate mortgage (ARM) has an interest rate that can rise or fall over your 30-year term. ARMs commonly have a fixed rate for a set period, and then your mortgage rate will change annually or every six months, depending on your loan structure. Lenders commonly offer 5/1, 7/1, 10/1, 5/6, 7/6 and 10/6 ARMs. 

With a 7/1 ARM, for instance, your rate will remain fixed for seven years. Then it can go up or down once a year throughout the rest of the loan term. If you choose a 10/6 ARM, the rate is fixed for 10 years and then can adjust every six months. The rate changes depend on what’s going on in the marketplace.

While your rate can increase with an ARM, your mortgage will likely have a rate cap that limits how much the interest rate can rise. Rate caps vary by lender, so if you’re considering an ARM, be sure to compare options and read the fine print. In general, an ARM could be a decent choice if you only plan to stay in your home for a few years, or you’re comfortable with the risk of possible rate increases when mortgage rates fluctuate. 

How to qualify for a 30-year mortgage

Prospective lenders will check several eligibility criteria when you apply for a loan. If you’re seeking a conventional loan, you’ll likely need to meet the following requirements:

• Credit score: You’ll typically need a credit score of at least 620 to qualify for a conventional home loan. If your credit needs work, then some lenders accept a score of 500 or 580 for loans backed by the Federal Housing Administration (FHA). Loans guaranteed by the Department of Veterans Affairs (VA) also typically come with more flexibility.
• DTI ratio: Lenders also review your debt-to-income (DTI) ratio, which measures your current monthly debt related to your monthly income. You’ll likely need a DTI below 36% to qualify for a mortgage, though some lenders may accept DTIs of up to 50% if you meet certain criteria. 
• Down payment amount: The down payment you’ll need to provide at closing can range from 3% to 20% of the home’s purchase price. Requirements vary by lender and loan type. With a larger down payment, you may be able to negotiate a lower interest rate. 
• Employment: The lender will verify your employment status and check your income history over the previous two years. 

Comparing current 30-year mortgage rates

Mortgage rates are influenced by the federal funds rate, which is set by the Federal Reserve. But lenders also have room to offer different rates. For this reason, it’s smart to compare lenders and loan options to find the best possible deal. Even a small difference in your rate could make a significant difference in interest costs over the life of your loan. 

For instance, with a $375,000 mortgage loan with a 7% rate, a 30-year term and a 20% down payment, you’d pay $419,307 in interest over your loan term. But the same loan with a 6.75% rate would only cost $401,123 in interest. Plus, you’d trim about $50 off your monthly payment.  

Here’s a look at 30-year mortgage rates from some well-known lenders, as of April 2024. 

LENDER	INTEREST RATE
Bank of America	7.000%
Ally	7.250%
Better.com	6.375%
SoFi	6.500%
Veterans United	5.990% (VA loan)
New American Funding	6.250%
Chase	6.875%
Navy Federal	5.750%
Wells Fargo	6.500%
Rocket Mortgage	7.25%
PNC	6.750%

See MoreSee Less

How to find the best rate and lender

Look at your budget to determine a monthly payment you can afford. Once you’ve reviewed your credit and budget, it’s time to shop for a mortgage loan. While it may be tempting to use a mortgage broker, as these services can make it simpler to shop for a loan, you’ll likely need to pay a fee and there’s no guarantee you’ll get a better rate. 

Take the following steps to find the best loan for your situation:

1. Review your credit. Request your free credit reports and scan them for any reporting errors, which can ding your credit. Then pull your credit score. Generally, the best mortgage rates are usually reserved for borrowers with excellent credit. Depending on where your credit stands, you may decide to improve your credit score before moving forward with the home loan.
2. Research several lenders. Because lenders set different rates, charge different closing costs and have varying levels of customer service, it’s a good idea to compare multiple options. Make a list of potential lenders from a mix of traditional banks, credit unions and online lenders. 
3. Get pre-qualified. Once you’ve narrowed down your options, check whether your prospective lenders offer a pre-qualification tool on their websites. This can give you an idea of whether you qualify and the interest rate you may receive. You may need to provide personal and financial information to get an accurate quote. 
4. Check your monthly payment. A lender may approve you for a loan with a monthly payment that stretches your finances, so you should check your budget and determine a monthly payment you can afford. A mortgage calculator can help estimate your monthly payment based on your potential loan size, interest rate and down payment. 
5. Apply for the loan. Choose a lender that works for you, and formally submit a mortgage application. Expect to provide in-depth personal and financial information as part of this process. 

Frequently asked questions (FAQs)

Editor’s Note: This article contains updated information from previously published stories:

• Rate on 30-year mortgage hits record low 3.36%
• Mortgage applications fall for fourth straight week despite lower rates
• Rate on 30-year mortgage hits record 3.31%