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Since last Sunday, the majority of mortgage and refinance rates have increased. However, mortgage rates on 7/1 ARMs and refinance rates on 15-year fixed mortgages have dropped. In general, rates are still at all-time lows.

You might think about a fixed-rate mortgage if you're aiming to get a mortgage or refinance because you'll receive a lower interest rate than you would with an adjustable-rate mortgage. You'll also secure your rate for 15 or 30 years without gambling on a future rate increase with an ARM.

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Experts told Insider that adjustable-rate mortgages are now probably a worse deal for most borrowers than fixed-rate mortgages.

Rates are at all-time lows overall, which often indicates a struggling economy. Rates will likely stay low as the US continues to deal with the economic fallout of the COVID-19 pandemic.

Mortgage rates on Sunday, April 4, 2021

2.64% 2.63% 2.5%
3.60% 3.58% 3.36%
4.47% 4.85% 4.48%
4.72% 4.39% 4.19%

Rates from Money.com

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Rates for fixed-rate mortgages have increased marginally since this point last week. Rates for 10/1 ARMs have also gone up, while rates for 7/1 ARMs have gone down by 38 basis points.

We're giving you the average rates nationwide for conventional mortgages , which might be what you think of "normal mortgages." Government-backed mortgages through the FHA , VA , or USDA may offer you a lower rate — provided you're eligible.

Refinance rates on Sunday, April 4, 2021

2.94% 2.95% 2.79%
3.89% 3.87% 3.72%
4.78% 4.18% 4.85%
5.02% 4.85% 4.76%

Rates from Money.com

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Since last Sunday, most refinance rates have ticked up, though rates on 15-year fixed mortgages have gone down by one basis point. Rates on fixed-rate mortgages and 10/1 ARMs are also up from this point last month.

Top tips to obtain a low mortgage rate

Mortgage and refinance rates have largely risen since last week. At the same time, they remain at all-time lows, and you can still secure a low mortgage rate today.

There's no need to rush to apply for a mortgage or refinance, though. Rates will probably stay relatively low for the coming months, if not years, so you'll have the chance to better your rate by improving your financial situation. Here are several steps you may consider taking to snag the lowest possible rate:

  • Put down for a down payment . You may be able to put down as little as 3% if you want a conventional mortgage, but the lowest amount will depend on which type of mortgage you are after. You'll likely get an improved rate with a higher down payment.
  • Decrease your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. Numerous lenders like to see a DTI ratio of 36% or less. To better your ratio, pay down debts or look for opportunities to boost your income.
  • Choose a government-backed mortgage . If you're eligible, you might want to get a USDA loan (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 often come with lower interest rates than conventional mortgages. Additionally, you don't need a down payment for USDA or VA loans.

You can lock in a low rate now if you are in a good financial situation, but you don't need to hurry to get a mortgage or refinance if you aren't prepared.

How 15-year fixed mortgages work

With a 15-year fixed mortgage , it will take you 15 years to pay off your loan, and you'll have the same interest rate the whole time.

A 15-year fixed mortgage will cost less than a 30-year fixed mortgage. You'll pay off the mortgage in less time, and you'll receive a better interest rate to boot.

On the other hand, your monthly payments will be higher with a 15-year term than a longer term because you're paying down the same mortgage principal in fewer years.

How 30-year fixed mortgages work

If you get a 30-year fixed mortgage , you'll pay off your loan over 30 years, and you'll pay the same interest rate the whole time.

You'll fork over smaller monthly payments with a 30-year term than a 15-year term because you're splitting up your payments over 15 more years.

However, you'll cough up more total interest with a 30-year fixed mortgage than a 15-year fixed mortgage because you'll have a higher interest rate for an extended period.

How ARMs work

A fixed-rate mortgage keeps your rate the same for your whole loan period. But with an adjustable-rate mortgage, you'll pay a set rate for a predetermined period, then that rate will change periodically. A 10/1 ARM locks in your rate for a decade. Then your rate will vary once per year.

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

If you're thinking about getting an ARM , discuss with 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.

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, April 4 2021 »

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