Today's mortgage and refinance rates: March 28, 2021 | Rates decrease

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Mortgage and refinance rates have gone down across the board since last Sunday, with all mortgage rates dipping by at least nine basis points. Overall, rates are low. 

Currently, ARM rates start higher than fixed rates, and there’s the possibility that your rate will increase in the future. If you’re aiming to buy a home or to refinance, you might want to go for a fixed-rate mortgage soon. 

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Today’s mortgage rates: Sunday, March 28, 2021

Mortgage type Average rate today Average rate last week Average rate last month
15-year fixed 2.6% 2.69% 2.59%
30-year fixed 3.52% 3.63% 3.49%
7/1 ARM 4.29% 5.06% 4.27%
10/1 ARM 4.34% 4.9% 4.44%

Rates from Money.com

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Mortgage rates have fallen since last Sunday, with 10/1 ARM rates ticking down by 56 basis points. However, fixed rates and 7/1 ARM rates are up from this point last month.

We’re giving you the average rates nationwide for conventional mortgages, which might be what you consider “standard mortgages.” You might earn a better rate with a government-backed mortgage through the FHA, VA, or USDA.

Today’s refinance rates: Sunday, March 28, 2021

Mortgage type Average rate today Average rate last week Average rate last month
15-year fixed 2.91% 3.03% 2.94%
30-year fixed 3.83% 3.89% 3.9%
7/1 ARM 4.65% 5.27% 5.21%
10/1 ARM 4.82% 5.19% 5.07%

Rates from Money.com

Click here to compare offers from refinance lenders »

Since last week, all refinance rates have gone down. Rates for 7/1 ARMs have dropped by 62 basis points, and all rates have decreased since last month.

Overall, rates remain low. Low rates are frequently an indicator of an economy in disarray. As the US continues to bear the brunt of the economic impact of the COVID-19 pandemic, rates will probably stay low.

How to snag a low mortgage rate

Mortgage and refinance rates have dipped over the past week, and they remain low overall. You might want to secure a low mortgage rate while possible. 

At the same time, you don’t need to fret over a rate increase in the near future, as rates will likely stay low well into 2021. There’s no need to hurry to get a mortgage or to refinance. You have the chance to improve your financial profile and get a better rate. 

  • Boost your credit scoreYou can start by making payments on time, paying off your debts, or allowing your credit to age. You’ll get an improved interest rate with a higher score, and many lenders will reduce your rate with a score of at least 700. 
  • Save more for a down paymentThe minimum amount you’ll require for your down payment will depend on the type of mortgage you are after. The bigger your down payment, the more likely your lender will give you a better interest rate.
  • Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. To better your ratio, pay down debts or look for ways to boost your income.
  • Pick a government-backed mortgage. If you’re qualified, you might consider a USDA loan (aimed at low-to-moderate-income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). Government-backed mortgages frequently have better interest rates than conventional mortgages. As a bonus, down payments aren’t required for USDA or VA loans.

If you’re feeling confident about your financial situation, now might be a good time to take out a mortgage or refinance.

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How do 15-year fixed mortgages work?

If you take out a 15-year fixed mortgage, you’ll pay off your loan over 15 years, and your interest rate will stay the same the entire time. 

A 15-year term is less expensive than a 30-year term. You’ll pay off the mortgage a decade and a half earlier, and you’ll get a lower interest rate to boot. 

Unfortunately, you’ll dish out more per month with a 15-year fixed mortgage than a 30-year fixed mortgage because it will take you fewer years to you’ll pay off the same loan principal.

How do 30-year fixed mortgages work?

With a 30-year fixed mortgage, it will take you three decades to pay off your mortgage, and you’ll lock in your interest rate for the length of the loan. A 30-year term has a higher interest rate than a shorter term.

You’ll make smaller monthly payments with a 30-year fixed mortgage than with a 15-year fixed mortgage because you’re splitting up your payments over more time.  

However, you’ll fork over more in interest with a 30-year term than with a 15-year term, as you’re paying a higher interest rate for an extended period. 

How do ARMs work?

A fixed-rate mortgage keeps your rate constant for your entire loan period. But with an adjustable-rate mortgage, you’ll pay the same rate for an agreed-upon period, then that rate will fluctuate regularly. A 10/1 ARM locks in your rate for a decade. Then your rate will change once per year.

Although ARM rates are comparably low now, you may favor a fixed-rate mortgage. The 30-year fixed rates are similar to or lower than ARM rates, so it could be an excellent opportunity to lock in a low rate with a fixed mortgage. This way, you won’t need to risk a future rate increase with an ARM. 

If you’re considering getting an ARM, discuss with your lender what your rates would be if you chose a fixed-rate versus an adjustable-rate mortgage.

While you can lock in a low rate now, you should be financially prepared before doing so. 

Mortgage and refinance rates by state

Check the latest rates in your state at the links below. 

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.

See the mortgage rates for Sunday, March 28 »

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