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Today’s mortgage and refinance rates: March 27, 2021 | Rates slip

Table of Contents: Masthead StickySummary List Placement Since last Saturday, all mortgage and refinance rates have gone down, with mortgage rates for 7/1 ARMs dropping by a staggering 77 basis points. Rates are low in general.  If you're aiming to buy a home or to refinance, you might want to go for...

Table of Contents: Masthead StickySummary List Placement 

Since last Saturday, all mortgage and refinance rates have gone down, with mortgage rates for 7/1 ARMs dropping by a staggering 77 basis points. Rates are low in general. 

If you’re aiming to buy a home or to refinance, you might want to go for a fixed-rate mortgage instead of an adjustable-rate mortgage. You can get a better deal on a fixed-rate mortgage than an adjustable-rate mortgage currently because ARM rates start higher, and your rate might go up down the line with an ARM.

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Mortgage rates on Saturday, March 27, 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

Learn more and get offers from multiple lenders »

Since last week, mortgage rates are down across the board, with adjustable rates dropping by at least 50 basis points. You can lock in an ARM rate for under 4.5% today. 

We’re showing you the average rates nationwide for conventional mortgages, which may be what you think of as “normal mortgages.” You may receive an improved rate with a government-backed mortgage through the FHAVA, or USDA.

Refinance rates on Saturday, March 27, 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 »

All refinance rates have dipped since last Saturday, with fixed rates ticking down by at least five basis points. Rates are also down from this point last month.

Rates are low in general. Low rates often signify a floundering economy. As the US continues to struggle to handle the economic fallout of the COVID-19 pandemic, rates will likely remain low.

Ways to obtain a low mortgage rate

Mortgage and refinance rates have fallen since last Saturday, and they are still low in general. You may consider locking in a good mortgage rate now. 

You don’t necessarily need to rush, though. Rates will probably remain relatively low for months, if not longer. You presumably have the opportunity to improve your financial profile and receive a better rate. Here are some ways to snag the best rate:

  • Boost your credit score by making payments on time, paying down debts, or letting your credit age. You may notice any inaccuracies that might be lowering your score by requesting and reviewing a copy of your credit report.
  • Save more for a down paymentYou might be able to put down as little as 3% if you want a conventional mortgage, but the smallest amount will depend on which type of mortgage you want. You’ll probably get a better rate with a higher down payment.
  • Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Many lenders want to see a DTI ratio of 36% or less. To better your ratio, pay down debts or seek opportunities to improve your income.
  • Go after a government-backed mortgage. If you’re eligible, you may think about a USDA loan (designed for low-to-moderate-income borrowers buying in a rural area), a VA loan (aimed at military members and veterans), or an FHA loan (not designated for any particular group). Government-backed mortgages often have better interest rates than conventional mortgages. Additionally, down payments aren’t needed for USDA or VA loans.

You can lock in a low rate now if your finances are in good shape, but you don’t need to hurry to get a mortgage or refinance if you’re not ready.

15-year fixed mortgage rates

With a 15-year fixed mortgage, you’ll pay off your mortgage over a decade and a half, and your interest rate will remain locked in the whole time. 

You’ll fork over 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 mortgage principal.

However, it will cost you less to take out a 15-year fixed mortgage than a 30-year fixed mortgage. You’ll pay off the loan in half the time and you’ll get a better interest rate.  

30-year fixed mortgage rates

With a 30-year fixed mortgage, you’ll pay off your loan over 30 years, and you’ll secure your interest rate for the length of the loan. A 30-year term comes with a higher interest rate than a shorter term.

You’ll pay less per month with a 30-year fixed mortgage than with a 15-year fixed mortgage because you’re dividing up your payments over a longer period.  

However, you’ll pony up more in interest with a 30-year term than with a 15-year term, as you’re paying a higher interest rate for more time. 

Adjustable mortgage rates

An adjustable-rate mortgage, commonly referred to as an ARM, will secure your rate for a fixed period. Then your rate will fluctuate regularly. A 10/1 ARM keeps your rate the same for ten years, then your rate will increase or decrease once per year.

Adjustable rates are low these days, but a fixed-rate mortgage might still be the better deal. Fixed rates are starting lower than adjustable rates, and you can lock in a great rate without risking it increasing later with an ARM.

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

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.

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