Today's mortgage and refinance rates: March 30, 2021 | Rates sink

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Since last Tuesday, all mortgage and refinance rates are down, with mortgage and refinance rates for 7/1 ARMs dropping by over 1%. Rates are at all-time lows overall. 

If you’re looking to buy a home or to refinance, you may consider a fixed-rate mortgage, as adjustable rates are now starting higher than fixed rates. You also face the risk that your rate could go up in the future with an ARM. 

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Today’s mortgage rates: Tuesday, March 30, 2021

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Mortgage rates have decreased since last week, with 7/1 ARM rates dropping by a staggering 1.21%. Rates for ARMs are also down from this point last month. 

We’re giving you the average rates nationwide for conventional mortgages, which may be what you consider “standard mortgages.” You might be eligible for a better rate with a government-backed mortgage through the FHA, VA, or USDA.

Today’s refinance rates: Tuesday, March 30, 2021

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Since this point last week, refinance rates have ticked down across the board. Rates for ARMs have fallen below 5%, and rates are at historic lows overall.

In general, rates remain at striking lows. Low rates are frequently an indicator of a struggling economy. Rates will probably stay low as the US continues to deal with the economic impact of the COVID-19 pandemic.

How to snag a low mortgage rate

Rates are at all-time lows and have sunk since last Tuesday. You might want to secure a low mortgage rate while possible.

However, you shouldn’t be too worried about your rate increasing anytime soon, as rates will probably remain low well into 2021, if not longer. There’s no need to rush to get a mortgage or refinance. You have the chance to change your financial situation and get a better rate. 

• Boost your credit score. You can start by making timely payments, paying off your debts, or allowing your credit to age. You’ll obtain a more favorable interest rate with a higher score, and many lenders will reduce your rate with a score of at least 700. 
• Put down more for a down payment. You might be able to shell out as little as 3% if you’re going after a conventional mortgage, but the smallest amount will depend on which type of mortgage you want. You’ll likely get an improved 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. You can get a better rate by lowering your ratio. To improve your ratio, pay down debts or search for opportunities to boost your income.
• Pick a government-backed mortgage. If you’re qualified, you might 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). Government-backed mortgages frequently come with better interest rates than conventional mortgages. Additionally, down payments aren’t required for USDA or VA loans.

If you’re financially prepared, you can secure a great rate — but there’s no need to hurry. 

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15-year fixed mortgages

If you get a 15-year fixed mortgage, you’ll pay the same interest rate on your mortgage over a 15 year loan period. 

A 15-year fixed mortgage will be less expensive than a 30-year fixed mortgage. You’ll pay off the mortgage in half the time, and you’ll receive a lower interest rate as well. 

Unfortunately, you’ll cough up higher monthly payments with a 15-year term than with a 30-year term, because you’re paying down the same loan principal 15 years earlier. 

30-year fixed mortgages

If you take out a 30-year fixed mortgage, you’ll pay off your loan over three decades, and your mortgage provider will lock in your interest rate the whole time. 

Your monthly payments will be smaller with a 30-year term than a shorter term because you’re dividing up your payments over an extended period. 

However, your total interest payment will be higher with a 30-year fixed mortgage than a 15-year fixed mortgage because you’re paying a higher interest rate for more years. 

Adjustable-rate mortgages

A fixed-rate mortgage sets your rate for the entire time you’re paying off your mortgage. On the flip side, with an adjustable-rate mortgage, you’ll pay a constant rate for a pre-defined period. After that, your rate will vary periodically. A 10/1 ARM sets your rate for a decade. Then your rate will fluctuate yearly.

Although ARM rates are at all-time lows now, you may still want to get a fixed-rate mortgage. The 30-year fixed rates are equal to or lower than ARM rates, so it could be an excellent opportunity to secure a low rate with a fixed mortgage. This way, you won’t need to worry about your rate increasing in the future with an ARM.

If you’re considering 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

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 Monday, March 29 »

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