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Since last Monday, mortgage and refinance rates have dropped.

You may consider securing a low rate with a fixed-rate mortgage instead of chancing your rate going up in the future with an adjustable-rate mortgage.

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Mortgage rates are often low when the economy is in distress. The coronavirus pandemic has damaged the US economy, and it's taking time for the country to bounce back.

Christian Wallace, Head of Real Estate Services at Better.com , told Insider that rates will likely remain low as the US pauses to see if there is a fourth wave of coronavirus . A fourth wave could impact the economy by having more people stay home.

Today could be a great opportunity to lock in a low mortgage rate . But don't fret if you aren't ready to buy or refinance yet, because rates will likely stay low for a while.

Mortgage rates for Monday, April 19, 2021

2.54%
3.38%
4.29%
4.28%

Rates from Money.com

Learn more and get offers from multiple lenders.»

Mortgage rates are low in general, and fixed rates are substantially lower than adjustable rates.

We're showing you the national average rates for conventional mortgages , which might be what you think of "normal mortgages." You may be able to get a lower rate on a government-backed mortgage through the FHA , VA , or USDA .

Refinance rates for Monday, April 19, 2021

2.73%
3.7%
4.53%
4.87%

Rates from Money.com

Click here to compare offers from refinancing lenders »

Refinance rates are often higher than mortgage rates for buying a home. But today's refinance rates remain low overall.

Ways to snag the best mortgage rate

Mortgage and refinance rates are low, so it could be a great day to secure a rate. But you might not have to hurry to obtain a low rate.

Rates will likely remain low for the foreseeable future. You have time to boost your finances, which could result in an improved interest rate. Consider the following steps:

  • Boost your credit score
  • Put down a larger down payment . You may need between 0% and 20% for a down payment, depending on which type of mortgage you want . But if you can pay more than the minimum, a lender might give you a better 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. Many lenders want to see a DTI ratio of 36% or less. Consider paying down debts more aggressively to get a better ratio.
  • Pick a government-backed mortgage . If you're qualified, you may want to get 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). These loans frequently have lower interest rates than conventional mortgages. Additionally, you don't need to make a down payment for USDA or VA loans.

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

Trends for mortgage and refinance rates

Mortgage rate trends

2.54% 2.58% 2.61%
3.38% 3.53% 3.53%
4.29% 4.34% 4.69%
4.28% 4.37% 4.59%

Mortgage rates are down since last Monday, and from this point last month.

Refinance rate trends

2.73% 2.88% 2.94%
3.7% 3.85% 3.84%
4.53% 4.60% 4.91%
4.87% 4.95% 4.89%

Since last Monday, refinance rates have dropped across the board. The same is true since last month.

How 15-year fixed mortgage rates work

If you take out a 15-year fixed mortgage , you'll lock in an interest rate over a decade and a half.

You'll fork over more per month with a 15-year fixed mortgage than a 30-year term because you're paying off the same mortgage principal in half the time.

Fortunately, a 15-year term will be less expensive than a longer term. You'll receive a lower interest rate and you'll pay off your mortgage in fewer years.

How 30-year fixed mortgage rates work

If you get a 30-year fixed mortgage , it will take you 30 years to pay off your loan, and your interest rate will stay the same for the entire term. A 30-year fixed mortgage has a higher interest rate than a shorter term.

You'll cough up more total interest with a 30-year term than a 15-year term because you're paying a higher interest rate for more years.

On the bright side, you'll pay less per month with a 30-year term than with a shorter term because you're splitting up your payments over an extended amount of time.

How ARMs work

With an adjustable-rate mortgage , your rate is the same for the first several years. Then the rate fluctuates regularly.

A 7/1 ARM locks in your rate for the first seven years, then changes it once per year. A 10/1 ARM keeps your rate the same for a decade, then alters it once per year. Some lenders offer ARMs that alter your rate more or less frequently, like six months or five years.

ARM rates are low right now, but fixed-rate mortgages are still the better deal. Fixed rates are starting lower than ARM rates, and because rates are at all-time lows, you may want to lock in a good rate rather than risk an increase later.

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

Mortgage and refinance rates by state

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

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.

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.

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