The interest rate on a 30-year fixed-rate mortgage is 7.500% as of April 16, which is 0.125 percentage points higher than yesterday. Additionally, the interest rate on a 15-year fixed-rate mortgage is 6.625%, which is also 0.125 percentage points higher than yesterday.

With mortgage rates changing daily, it’s a good idea to check today’s rate before applying for a loan. It’s also important to compare different lenders’ current interest rates, terms, and fees to ensure you get the best deal. 

Rates last updated on April 16, 2024. Rates are based on the assumptions shown here. Actual rates may vary. Credible, a personal finance marketplace, has 5,000 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

When you take out a mortgage loan to purchase a home, you’re borrowing money from a lender. In order for that lender to make a profit and reduce risk to itself, it will charge interest on the principal — that is, the amount you borrowed.

Expressed as a percentage, a mortgage interest rate is essentially the cost of borrowing money. It can vary based on several factors, such as your credit score, debt-to-income ratio (DTI), down payment, loan amount, and repayment term.

After getting a mortgage, you’ll typically receive an amortization schedule, which shows your payment schedule over the life of the loan. It also indicates how much of each payment goes toward the principal balance versus the interest.

Near the beginning of the loan term, you’ll spend more money on interest and less on the principal balance. As you approach the end of the repayment term, you’ll pay more toward the principal and less toward interest.

Your mortgage interest rate can be either fixed or adjustable. With a fixed-rate mortgage, the rate will be consistent for the duration of the loan. With an adjustable-rate mortgage (ARM), the interest rate can fluctuate with the market.

Keep in mind that a mortgage’s interest rate is not the same as its annual percentage rate (APR). This is because an APR includes both the interest rate and any other lender fees or charges.

Mortgage rates change frequently — sometimes on a daily basis. Inflation plays a significant role in these fluctuations. Interest rates tend to rise in periods of high inflation, whereas they tend to drop or remain roughly the same in times of low inflation. Other factors, like the economic climate, demand, and inventory can also impact the current average mortgage rates.

To find great mortgage rates, start by using Credible’s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible’s mortgage calculator to estimate your monthly mortgage payments.

Mortgage lenders typically determine the interest rate on a case-by-case basis. Generally, they reserve the lowest rates for low-risk borrowers — that is, those with a higher credit score, income, and down payment amount. Here are some other personal factors that may determine your mortgage rate:

Other indirect factors that may determine the mortgage rate include:

Along with certain economic and personal factors, the lender you choose can also affect your mortgage rate. Some lenders have higher average mortgage rates than others, regardless of your credit or financial situation. That’s why it’s important to compare lenders and loan offers.

Here are some of the best ways to compare mortgage rates and ensure you get the best one:

One other way to compare mortgage rates is with a mortgage calculator. Use a calculator to determine your monthly payment amount and the total cost of the loan. Just remember, certain fees like homeowners insurance or taxes might not be included in the calculations.

Here’s a simple example of what a 15-year fixed-rate mortgage might look like versus a 30-year fixed-rate mortgage:

If you’re thinking about taking out a mortgage, here are some benefits to consider:

And here are some of the biggest downsides of getting a mortgage:

Requirements vary by lender, but here are the typical steps to qualify for a mortgage:

Here are the basic steps to apply for a mortgage, and what you can typically expect during the process:

Refinancing your mortgage lets you trade your current loan for a new one. It does not mean taking out a second loan. You will also still be responsible for making payments on the refinanced loan.

You might want to refinance your mortgage if you:

The refinancing process is similar to the process you follow for the original loan. Here are the basic steps:

If you need to tap into your home’s equity to pay off debt, fund a renovation, or cover an emergency expense, there are two popular options to choose from: a home equity loan and a home equity line of credit (HELOC). Both a home equity loan and a HELOC allow you to borrow against your home’s equity but a home equity loan comes in the form of a lump sum payment and a HELOC is a revolving line of credit.

These two loan types have some other key similarities and differences in how they work:

Interest rates on mortgages fluctuate all the time, but a rate lock allows you to lock in your current rate for a set amount of time. This ensures you get the rate you want as you complete the homebuying process.

Mortgage points are a type of prepaid interest that you can pay upfront — often as part of your closing costs — for a lower overall interest rate. This can lower your APR and monthly payments. 

Closing costs are the fees you, as the buyer, need to pay before getting a loan. Common fees include attorney fees, home appraisal fees, origination fees, and application fees.

If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

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Though America’s economy has shown some signs of health and growth, two experts warn it’s more “wobbly” than it seems.

“The economy is growing. However, the gold price commodity prices are telling us the dollar is wobbly,” Forbes Media founder and CEO Steve Forbes said on a “Kudlow” panel, Monday.

“The Fed’s got problems ahead,” he continued, “and you don’t cure it by raising interest rates and depressing the economy.”

Following up on Forbes’ commentary, ex-Council of Economic Advisors Chair and Trump administration senior advisor Kevin Hassett echoed unstable concerns.

BIDEN MUST STOP INFLATION DENIAL AND QUIT DOING DUMB THINGS

“One of the reasons why retail sales were so strong is that there were really blockbuster sales at gas stations,” Hassett pointed out. “The AAA average price in the U.S. went from $3.30 last month to $3.60 this month, and that’s money that people aren’t going to have to spend on other things. And so I think that the economy is more wobbly than these data suggests.”

Monthly retail sales numbers reported by the Commerce Department showed Americans picked up the pace of spending in March even as they continued to face high interest rates and steeper prices for everyday goods.

Spending on everyday goods including cars, food and gasoline, jumped 0.7% last month, much higher than the 0.3% increase forecast by LSEG economists.

The March advance is not adjusted for inflation, meaning that consumers may be spending the same but getting less bang for their buck.

Forbes and Hassett call this effect the “inflation tax” on average Americans’ wallets.

“Inflation is a tax. And who gets hurt the most? We know who they are: tens of millions of people living paycheck to paycheck and up to their eyeballs in credit card debt, interest rates going up. We’ve discussed here before, what’s the real rate of inflation? It’s not 3%, it’s 7% when you cut interest payments, you have to pay that interest every month,” Forbes explained.

“So Joe Biden’s taxing the people who have the least. Yet he’s babbling on about getting to the rich,” the CEO added. “All this… is not about revenue. This is about control. It’s not about growth, it’s about controlling people’s lives.”

Hassett also put the inflation onus on Biden’s White House, claiming they have no sense of “commitment” to the economy.

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“Your job is to help run the economy and have smart policies. And if you want more progressive taxation, then you could talk about how to do that without harming the economy, but to just lie about it the way they do over and over, it really is infuriating,” Hassett said.

“The share of taxes paid by the top 1% has gone up, not down. And so this idea that you have to raise tax rates because of this incredible injustice in society is just incorrect,” he further noted. “It’s inconsistent with the facts, and it’s just a lie that just keeps on going.”

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FOX Business’ Megan Henney contributed to this report.

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