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Since last week, most mortgage and refinance rates have gone up — though rates remain at all-time lows overall.

You may want to secure a low rate on a fixed-rate mortgage soon, provided you have a handle on your finances.

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Mat Ishbia, CEO of United Wholesale Mortgage, told Insider that fixed-rate mortgages are probably a preferable option to adjustable-rate mortgages currently.

Fixed rates are starting lower than adjustable rates now, and you risk a rate increase down the line with an ARM. You might want to lock in a low rate while you can.

Mortgage rates on Sunday, March 14, 2021

2.54% 2.5% 2.33%
3.44% 3.36% 3.13%
4.52% 4.48% 4.07%
4.23% 4.19% 3.85%

Rates from Money.com

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All mortgage rates have risen since last Sunday, though none by more than eight basis points. You can still get a fixed mortgage rate below 3.5% today, and rates are still low in general.

We're showing you the average rates nationwide for conventional mortgages , which may be what you consider "normal mortgages." Government-backed mortgages through the FHA , VA , or USDA may offer you lower rates.

Refinance rates on Sunday, March 14, 2021

2.84% 2.79% 2.58%
3.76% 3.72% 3.45%
4.81% 4.85% 4.52%
4.74% 4.76% 4.25%

Rates from Money.com

Click here to compare offers from refinance lenders »

Fixed mortgage refinance rates have ticked up since last Sunday, while adjustable rates are down a bit.

Refinance rates remain at striking lows overall. Low rates often indicate a struggling economy. As the US continues to grapple with the COVID-19 pandemic, rates will probably remain low.

Top tips to obtain a low mortgage rate

Almost all fixed and adjustable mortgage rates have gone up since last Sunday, but they remain at all-time lows. You may consider securing a low mortgage rate today.

At the same time, a rate increase soon is seemingly unlikely, so you don't have to rush. Rates will probably remain low for several months, if not longer. You have the opportunity to change your financial situation and receive a lower rate.

To get the best possible rate, consider these steps before applying:

  • Improve your credit score
  • Save more for a down payment . The minimum down payment you'll need depends on which type of mortgage you are after. 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. Most lenders want to see a ratio of 36% or less. To improve your ratio, pay down debts or look for ways to increase your income.
  • Choose a government-backed mortgage . You may consider a USDA loan (aimed at low-to-moderate-income borrowers buying in a rural area), a VA loan (designed for military members and veterans), or an FHA loan (not designated for any particular group). These mortgages often come with lower interest rates than conventional mortgages. As a bonus, down payments aren't required for USDA or VA loans.

You can secure a low rate now if your finances are in good shape, but you don't need to rush to get a mortgage or refinance if you're not prepared.

How 15-year fixed mortgages work

With a 15-year fixed mortgage , it will take you 15 years to pay down your mortgage, and your interest rate will remain locked in the entire period.

You'll shell out higher monthly payments with a 15-year term than a longer term because you'll pay off the equivalent loan principal in half the time.

On the other hand, it will cost less to take out a 15-year fixed mortgage than a 30-year term in the long run. You'll pay off the mortgage a decade and a half, and you'll get a lower interest rate too.

How 30-year fixed mortgages work

If you take out a 30-year fixed mortgage , you'll pay off your loan over three decades, and you'll pay the same interest rate for the entire term.

You'll cough up 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.

However, you'll pay less per month with a 30-year fixed mortgage than with a 15-year fixed mortgage because you're dividing your payments over more years.

How ARMs work

With an adjustable-rate mortgage, you'll secure your rate for an agreed-upon amount of time. Then your rate will change regularly. A 7/1 ARM keeps your rate the same for seven years, then your lender will alter your rate once per year.

ARM rates are now at all-time lows, but you may still prefer a fixed-rate mortgage. You can save yourself from worrying over a potential future rate increase with an ARM and secure a low rate for 15 or 30 years.

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.

While you can lock in a low rate now, you make sure you're financially ready before making any decisions.

Mortgage and refinance rates by state

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

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 the associate editor of banking and mortgages 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 Saturday, March 13 »

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