The Best 30-Year Mortgage Rates for 2022

As of today, September 16, 2021, the 30-year fixed mortgage rate is 3.01%, the FHA 30-year fixed rate is 2.82%, the VA 30-year fixed rate is 2.81% and the jumbo 30-year fixed rate is 3.13%. These rates are not the teaser rates you may see advertised online and based on our methodology should be more representative of what customers could expect to be quoted depending on their qualifications. You can learn more about what makes our rates different in the Methodology section of this page.

Shopping for the best 30-year mortgage rates is important because rates differ between lenders. Rates are the cost lenders charge when borrowers take out a home loan and are determined by the borrower’s credit profile and other factors like the down payment amount. Finding the most competitive rate can save you tens of thousands of dollars throughout the lifetime of your loan. 

To assist you in your research, we’ve compiled the best rates for 30-year terms, including some common questions you may have about mortgages in general. The best rates are from lenders who have nationwide availability, allow borrowers to purchase discount points, and have flexible down payment options.

Today’s 30-Year Mortgage Rates

Today’s Rates For All Mortgage Loan Types

Frequently Asked Questions

What Is a 30-Year Mortgage?

A 30-year mortgage is a conventional home loan that offers a fixed rate for a 30-year term. This means that your monthly payments, consisting of the principal and interest, remain the same throughout the lifetime of the loan. Some 30-year mortgages are government-backed loans, such as the ones from the Department of Veterans Affairs (VA) and Federal Housing Authority (FHA).

Most borrowers choose a 30-year mortgage because it has lower monthly payment compared to other terms, freeing up room for other financial goals. According to Freddie Mac, this is the most popular type of mortgage, with 90% of homeowners opting for a 30-year term.

Who Should Consider a 30-Year Mortgage?

Homeowners who want the lowest possible mortgage payments should consider a 30-year mortgage. Although it may come with a higher interest rate compared to other home loan terms, monthly mortgage payments are lower because they are extended over a longer period of time. 

In other words, homeowners can take advantage of better cash flow to pursue other financial goals like saving for retirement or stashing away an emergency fund. Depending on the lender, those who want to make higher monthly payments can do so to in order to pay off the mortgage faster while still allowing the option not to.

Does the Federal Reserve Decide Mortgage Rates?

The Federal Reserve doesn’t directly decide mortgage rates. Instead, it influences the rate by keeping inflation under control. Their goal is to help guide the economy, encouraging its growth. Raising or lowering short-term interest rates—a decision made by the Federal Open Market Committee—may encourage lenders to raise or lower their mortgage rates also.

What Is a Good 30-Year Mortgage Rate?

Just because advertised mortgage rates are low, doesn’t mean that you’ll receive that from the lender. A good rate will depend on the borrowers financial profile. Lenders look at factors such as income, credit history, the down payment, and other debts. 

In most cases, someone who has a high credit score tends to be offered lower mortgage rates than someone who has a lower credit score or higher monthly debt obligations. Understanding what might affect your individual rate is helpful for borrowers to find the most competitive rate.

Do Different Mortgage Types Have Different Rates?

There may be different rates depending on the type of mortgage you take out. There are mortgages that vary in the length of term with rates being lower for shorter terms. Adjustable rate mortgages (ARMs) also have different rates with their rates not being fixed for the entire loan term. For instance, ARMs tend to have a lower initial rate compared to fixed-rate loans, but after a predetermined amount of time it’ll go up according to the current market conditions.

Are Interest Rate and APR the Same?

The interest rate is the cost of the loan. The annual percentage rate (APR), on the other hand, includes both the interest rate and any additional fees or charges associated with your home loan. These fees can include mortgage points and origination fees. Because of these additional fees, the APR tends to be higher than the interest rate.

How Do I Qualify for Better Mortgage Rates?

Qualifying for more competitive rates will depend on whether you can influence the following factors:

• Put down a higher down payment amount: The higher the down payment, the more likely lenders will approve a lower interest rate. Do your research though, because not all lenders will give you a more attractive rate just because you put 20% down. 
• Increase your credit score: Mortgage rates are highly influenced by a borrower’s credit score. Lenders typically offer lower interest rates to borrowers with a higher credit score. The more you can work to increase it, the more likely you’ll be offered a lower rate. Some action steps to take include making on-time payments and refraining from applying for additional loans at the same time as your mortgage application. 
• Work toward a lower debt-to-income (DTI) ratio: This ratio is calculated by taking the total of your monthly debt payments and dividing it by your gross income. Lenders use this ratio to see whether borrowers can comfortably meet their debt obligations. If this number is 43% or higher, lenders view the borrower as risky, which is reflected in a higher interest rate. You can lower your DTI by either increasing your income or paying down more of your existing debt. 

How Big of a 30-Year Mortgage Can I Afford?

There are a few considerations to look into when determining how much of a mortgage you can afford. While lenders consider factors include your assets, liabilities, and income, your DTI will be the most significant factor in determining how much you can afford. The front-end DTI considers how much of your monthly income goes toward housing expenses. Lenders want to see this ratio at 28% or less.

What Are Mortgage Points?

Mortgage points, or discount points, is a type of prepaid interest borrowers pay when taking out a mortgage to lower their interest rate. This one-time fee costs 1% of your mortgage, or $1,000 for every $100,000. Paying one point will lower the rate by 0.25%, or a quarter of a percent. That means if you got offered an interest rate of 3.5%, paying one mortgage point will lower it to 3.25%.

How Much Will I Need for a Down Payment?

Lenders typically require between a 5% and 20% down payment, with the exception of government backed mortgages. Ones like the FHA loan require a minimum of 3.5%, whereas VA loans may not require one at all. The amount required will depend on your lender. In most cases, the higher the down payment, the lower the rate will be.

How We Chose the Best 30-Year Mortgage Rates  

In order to assess 30-year mortgage rates, we first needed to create a credit profile. This profile included a credit score ranging from 700 to 760 with a property loan-to-value ratio (LTV) of 80%. With this profile, we averaged the lowest rates offered by more than 200 of the nation’s top lenders. As such, these rates are representative of what real consumers will see when shopping for a mortgage. 

Keep in mind that mortgage rates may change daily and this data is intended to be for informational purposes only. A person’s personal credit and income profile will be the deciding factors in what loan rates and terms they are able to get. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.