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Current 30 Year Mortgage and Refinance Rates, September 28, 2020 | Rates move up

Bankrate logo Bankrate 9/28/2020 Jeff Ostrowski

30-year mortgage interest rates

The average rate for a 30-year fixed-rate mortgage is 3.09 percent, up 8 basis points over the past seven days. A month ago, the average interest rate on a 30-year mortgage was worse, at 3.13 percent.

At today’s interest rate, you'll pay principal and interest of $426.47 for every $100,000 you borrow. Compared to last Monday, that's $4.33 higher.

Learn more about 30-year fixed mortgage rates, and compare to a variety of other loan types.

30-year refinance rates

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The average rate to refinance a 30-year fixed-rate mortgage is 3.07 percent, up 10 basis points over the previous seven days. This time last month, the average rate on a 30-year mortgage was 3.19 percent.

At the current average rate, you'll pay P&I of about $425 for every $100k you borrow. Compared to last week, that's $5.40 higher.

Pros and cons of a 30-year fixed mortgage

The popular 30-year mortgage has a number of advantages, including:

  • Lower monthly payment. The 30-year mortgage offers lower, more affordable payments spread over time compared with shorter-term mortgages.
  • Stability. With a 30-year mortgage, you lock in a consistent principal and interest payment. Because of the predictability, you can plan your housing expenses for the long term. Remember: Your monthly housing payment can change if your homeowners insurance and property taxes go up or, less likely, down.
  • Buying power. Because you have lower payments, you can qualify for a bigger loan and a more expensive house.
  • Flexibility. Lower monthly payments can free up some of your monthly budget for other goals, like building an emergency fund, contributing to retirement or college tuition, or saving for home repairs and maintenance.
  • Strategic use of debt. Some argue that Americans focus too much on paying down their mortgages rather than adding to their retirement accounts. A 30-year fixed-rate mortgage with a smaller monthly payment can allow you to save more for retirement.

As with any financial product, the 30-year fixed-rate mortgage has some downsides:

  • More total interest paid. A 30-year term means you’ll pay more overall in interest compared with what you’d pay with a shorter-term loan.
  • Higher mortgage rates. Compared to 15-year loans, lenders charge higher interest rates for 30-year loans because they're taking on the risk of not being repaid for a longer time span.
  • Slower equity growth. The amortization table for a 30-year mortgage reveals a harsh reality: In the early years, almost all of your payments go to interest rather than principal. A 15-year loan brings a higher monthly payment but much faster payoff of the loan amount.
  • Buying more house than you should. Just because you might be able to afford more house with a 30-year loan doesn't mean you should stretch your budget to the breaking point. Give yourself some breathing room for other financial goals and unexpected expenses. Use Bankrate's home affordability calculator to determine how much house you can afford.
  • Mortgage lock recommendations

    A rate lock guarantees a lender will honor a specified interest rate at a specific cost for a set period. The benefit of a mortgage rate lock is that it protects you from market fluctuations. It also puts pressure on borrowers to make sure they close on homes before the rate-lock period expires. For example, if your lender locks in your rate at 3.75 percent for 45 days and rates jump up to 4 percent within that period, you'll still get your loan at the lesser rate.

    If they choose not to lock in your rate, you'll have a "floating" rate. That's not a bad strategy when interest rates are generally falling, but it could be costly in a rising rate environment. A rate lock is a must for risk-averse people who are seeking a mortgage. It's a good idea to ask for a 45-day lock at a minimum; 60 days is even better.

    Where rates are headed

    Each week, Bankrate’s editorial team asks a group of mortgage experts where they think mortgage rates will go over the next week. See Bankrate's Mortgage Rate Trend Index for weekly projections.

    In order to provide the latest rates, lenders across the nation respond to Bankrate's weekday mortgage rates survey to bring you the most current rates available. Here you can see our latest marketplace average rates and an up to date analysis on current interest rates..

    Shopping for the right lender? See Bankrate’s lender reviews here.

    Read about today’s rates for a variety of loan terms:

    • Mortgage rates today
    • Current mortgage refinance rates

    Searching for the right mortgage lender?

    • Accelin Loans Mortgage Review
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    • Methodology

      The rates you see above are Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. site averages tend to be volatile - they help consumers see the movement of rates day to day. The institutions included in the " Site Average" tables will be different from one day to the next, depending on which institutions' rates we gather on a particular day for presentation on the site.

      To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's on-site rate averages".

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