Best Mortgage Rates of 2021

Mortgage rates change because the economy is constantly in flux. Inflation, the current employment rate, consumer spending, and more all have an effect either directly or indirectly on current mortgage rates.

You can’t control larger factors like how the economy impacts mortgage rates. But, you can control your own personal finances. Having a job, an excellent credit score, and a downpayment are good places to start. Keep in mind that 15-year mortgages often have better interest rates than 30-year mortgages.

There are many different types of mortgage loans. There are conventional loans, VA loans, FHA loans, and even other industry specific mortgages like physician mortgages. However, the rates you’re offered largely depend on your own personal finances, your specific situation, and what you can actually afford. For example, a 15-year fixed rate conventional mortgage might have the lowest interest rates on paper, but if the monthly payment is too high for you, it might not be the best choice for you.

It’s difficult to time exactly when mortgage rates will go up and down. You should buy a house when you’re financially and emotionally ready to do so. If mortgage rates drop significantly after you’ve purchased your house, you always have the option of refinancing. Keep in mind, mortgage rates have been at historic lows the past few years.

There are other costs you need to know about before choosing a mortgage lender. Banks can charge fees like application fees, origination fees, document preparation fees, credit report fees, and more when you’re applying for a mortgage. A bank could have a low mortgage rate but exceptionally high fees. That’s why it’s important to look at the whole picture and understand your total cost per mortgage before choosing the best lender for you.

The lenders listed above typically offer competitive mortgage rates. Start with this list and get quotes from at least 3-5 of these lenders. Then, compare their fees and make a choice from there.