Today's mortgage and refinance rates: April 24, 2021 | Rates slip

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Mortgage and refinance rates have decreased a little since last Saturday, and more drastically since this time last month. Rates are at historic lows overall.

Fixed mortgage rates are better deals than adjustable rates right now. Fixed rates are starting lower than ARM rates. It’s impossible for rates to stay this low forever, so with an ARM, your rate will probably increase in the future. You probably want to lock-in an all-time rate for the entire life of your loan.

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If you’re financially ready to buy a home or refinance, it could be a good day to lock in a rate.

Mortgage rates for Saturday, April 24, 2021

Conventional rates from Money.com; government-backed rates from RedVentures.

Learn more and get offers from multiple lenders.»

Mortgage rates are low in general. Adjustable rates are higher than fixed rates, though.

Rates for conventional mortgages (which might be what you think of “normal mortgages”) are at historic lows. But mortgages backed by the FHA and VA offer even lower rates. Government-backed mortgages are great options if you’re eligible to apply.

Mortgage refinance rates for Saturday, April 24, 2021

Conventional rates from Money.com; government-backed rates from RedVentures.

Click here to compare offers from refinancing lenders »

Refinance rates are low today. But keep in mind that mortgage refinance rates are usually higher than purchase mortgage rates.

Tips for locking in a low mortgage rate

Rates are at striking lows overall, so it could be a good day to lock in a rate.

Rates will probably remain low for the coming months, though, so you have time to improve your finances to get a better rate. Here are a few ways you can get the lowest possible rate:  

• Increase your credit score by making payments on time, paying off debts, or letting your credit age. Requesting and reviewing a copy of your credit report may help you find any errors that might be lowering your score. 
• Save more for a down payment. You may be able to put down as little as 3% if you’re looking for a conventional mortgage, but the lowest amount will be contingent on which type of mortgage you want. You have an improved opportunity to get a better interest rate from your lender the higher your 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. You can improve your rate by lowering your ratio. To better your ratio, pay down debts or find ways to boost 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.

Mortgage and refinance rates trends

Mortgage rate trends

Mortgage rates have gone down a little since last Saturday, and more significantly since this time last month.

Refinance rate trends

All mortgage refinance rates have decreased since last Saturday. Rates are also down since March 24.

How 15-year fixed mortgage rates work

If you get a 15-year fixed mortgage, you’ll pay the same interest rate over the 15 years it will take you to pay down your loan.

A 15-year term will cost less than a 30-year term. You’ll get a lower interest rate and you’ll pay off your mortgage in half the time. 

However, you’ll make higher monthly payments with a 15-year fixed mortgage than a 30-year fixed mortgage because you’re paying off the same mortgage principal over fewer years.

How 30-year fixed mortgage rates work

With a 30-year fixed mortgage, you’ll pay down your mortgage over 30 years, and you’ll have a locked-in interest rate for the life of the loan. A 30-year term comes with a higher interest rate than a shorter term.

Your monthly payments will be smaller 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 pay more total interest with a 30-year term than with a 15-year term, as you’re paying a higher interest rate for more time.

How adjustable mortgage rates work

An adjustable-rate mortgage, commonly known as an ARM, will secure your rate for a set amount of time. Then your rate will fluctuate periodically. A 10/1 ARM locks in your rate for ten years, then your rate will increase or decrease 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 super low rate without risking your rate 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

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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