A 30-year mortgage is among the most popular ways to finance a home. Because the cost is spread over 30 years, this type of mortgage typically comes with more affordable monthly payments than shorter-term loans. If you are looking to apply for a 30-year mortgage, here are five lenders offering some of the best rates.
30-year mortgage rates compared
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| | | 30-year fixed with 2.35 points |
Navy Federal Credit Union | | | 30-year fixed with 0.25 points |
| | | 30-year fixed mortgage with about $560 in points (varies based on loan amount) |
| | | 30-year fixed with very small points credit (cash returned to you) |
*Rates as of Feb.. 26, 2024. Rates can change at any time without notice. Check with the lender for the latest rates.
** Based on 30-year mortgage for a $330,000 home loan. Property taxes, insurance, and private mortgage insurance (PMI) are not included.
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Our recommendations
Best for lowest rate without points: Owning
Owning is an online lender offering the lowest interest rate we found for a 30-year fixed mortgage, without paying for points. Owning only supports 15- or 30-year fixed loans up to $766,550. Borrowers must have a credit score above 640 and no self-employment income.
The application process is straightforward, as the online lender relies on extensive automation to speed up the borrowing process and eliminate the need for excessive paperwork. Mortgage brokers are not paid by commission, so you won’t encounter high-pressure sales tactics. Overall, if you qualify for the best rate from Owning, it’s a solid option.
Best for lowest interest rate with points: Better
Better offers a very competitive interest rate, though you’ll have to pay more than two points (that means more than 2% of your home loan amount) to get that highly competitive APR. Points could cost several thousand dollars depending on the loan amount, so they only make sense if you plan to stay in the home for a very long time.
Better provides a full suite of home-buying services, including mortgages, real estate agents, insurance, inspections, and help to find the best title insurance and home mortgage attorney if needed. Better does a good job of making the home-buying process as easy as possible. If you get the lowest interest rate from Better when shopping for a mortgage, you’ll likely find a positive borrowing experience.
Best for lowest rates for military families: Navy Federal Credit Union
Navy Federal Credit Union is a credit union focused on active military members, veterans, and their immediate families. As a credit union, Navy Federal is a nonprofit, which means the organization may pass on favorable rates and fees to borrowers. Navy Federal offered one of the best mortgage rates nationwide in our research and is a top choice for military households.
Navy Federal requires a minimum down payment of 5% but there is no requirement to pay private mortgage insurance (PMI), even with a down payment below 20%.
Best for rates matches: Tomo
If you get approved for a lower interest rate elsewhere, Tomo has a rate match guarantee program. This unique feature practically guarantees that you’ll get the best rate from Tomo.
Tomo is an online lender offering mortgage loans with varying APRs based on your selected points option. You can get the best rate by paying a higher number of points or get cash back (negative points) in exchange for a higher interest rate. However, even with minimal points, rates at Tomo beat most other lenders we reviewed.
Best for cash back: Simplist
If you want your mortgage to pay you points, you’ll get cash back from your mortgage and may still get a competitive interest rate with Simplist. It offers a range of mortgage-rate and point options. Even with more than $2,000 in cash back from your loan, you could still get an interest rate below the national average for an average-priced home. And depending on how much you’re willing to pay in points, you could get one of the best interest rates (measured with APR) we found.
Simplist isn’t a direct lender. Instead, it’s a marketplace connecting you with multiple loan options. After a quick initial application that takes about five minutes, you can get your rate from several lenders and pick the best option.
Methodology
To choose the best 30-year mortgage rates, we reviewed more than a dozen popular lenders to find the best fixed rates. We also looked at the latest Home Mortgage Disclosure Act (HMDA) data, which tracks mortgage rates from the top lenders nationwide. We identified the current rates for lenders with historically competitive rates.
What is a 30-year mortgage?
A 30-year mortgage is a home loan that is paid off over a 30-year period, with 360 monthly payments, assuming you don’t pay extra to pay off your loan early. Because the payback period is so long, 30-year mortgage loans often come with more affordable monthly payments than competing loan products, such as a 15-year mortgage.
Our analysis focused on fixed-rate loans, where your interest rate is locked in at the time of loan origination and doesn’t go up or down regardless of market interest rates. Variable-rate loans allow interest rates to adjust with market conditions over time. Variable interest rates are good when rates are expected to decrease but can become more costly if rates rise.
Mortgage industry insights
Interest rates can change at any time without notice, so you may see variations while shopping around for a mortgage loan. In 2023, interest rates increased following the lead of the Federal Reserve, which sets a target interbank lending rate that trickles down to mortgage rates and other bank interest rates.
In early 2024, the Federal Reserve indicated that interest rates may stay consistent or even go down, which may lead to lower rates in the future. The Consumer Financial Protection Bureau (CFPB) tracks interest rates by state. Rates for the most populated states as of this writing are:
- California: 7.563%.
- Texas: 7.625%.
- Florida: 7.375%.
- New York: 7.50%.
- Pennsylvania: 7.563%.
How to compare 30-year fixed mortgage rates
Like most other loans, the best method to compare 30-year fixed mortgage rates is using APR, which is short for annual percentage rate. APR is a rate inclusive of interest and fees, which gives you an apples-to-apples comparison of loan costs.
Also consider points, through which you can pay to get a lower interest rate or get cash out in exchange for a higher interest rate.
How to find 30-year mortgage rates today
You can find average interest rates for your state on the CFPB website. The rate you qualify for may be lower or higher than the average, depending on the lender and your borrower profile. Shopping around can help you find the best rates for which you qualify.
Factors that determine your mortgage rate
Several factors determine your personal mortgage rate. Those include:
- Market interest rates: Market interest rates are an overall force driving rates up and down over time. While each lender sets its own rates, they typically fall within a relatively tight margin compared to the national average interest rate. Rates tend to go up and down when the Federal Reserve changes its target rate, among other economy-wide factors.
- Lender interest rates: Most lenders want to make money, so they have an incentive to offer higher interest rates. However, due to competition, they won’t get much business if they charge more than other lenders. That’s why it’s a good idea to shop around to compare rates from various lenders.
- Your credit history: Your credit score and information on your credit report influence your approval odds and the rate offered by lenders. Making all loan payments on time and keeping credit card balances low are two of the best ways to achieve and maintain a high credit score.
- Your income and debt: Your income and monthly debt payments indicate your ability to repay the loan. Measured using the debt-to-income ratio (DTI), your income and debt greatly impact your approval odds and potentially your interest rate.
Pros and cons of a 30-year mortgage
A 30-year mortgage isn’t perfect for everyone. Consider these pros and cons before applying:
Pros:
- Competitive interest rates: Because they’re secured by a home, 30-year mortgage rates are usually among the lowest-cost loans around, measured by APR. While shorter-term mortgages may have even lower rates, 30-year APRs are often favorable compared to other types of loans.
- Lower monthly payment: With a long 30-year repayment period, your home cost is spread among 360 monthly payments. That makes 30-year mortgage loans among the most affordable options available for home loans.
- Predictable costs: With a fixed-rate loan, you know your minimum monthly payment for three decades. That’s extremely predictable and helps stabilize your finances.
Cons:
- Higher total interest cost: Due to the long payback period, total interest costs are often higher with 30-year loans than other borrowing options.
- Slower home-equity building: With lower monthly payments for a longer time period, you’ll build up equity in your home more slowly than you would with shorter-term loans.
Why should you consider a 30-year fixed mortgage rate?
If you want to buy a home with the lowest monthly payment, a 30-year fixed mortgage can be the best option. A 30-year fixed loan spreads your home cost over 30 years. With 360 payments, 30-year loans often make homeownership achievable for qualifying borrowers.
15- vs. 30-year mortgage
In general 15-year mortgages generally have lower interest rates than 30-year loans. However, with a shorter payback period, monthly payments are usually significantly higher than with a 30-year loan. A 15-year mortgage should cost much less over the long term due to the lower interest rate and fewer payments. However, with a higher monthly payment, they’re not affordable for as many borrowers.
Refinancing your current 30-year mortgage
A 30-year mortgage isn’t necessarily a lifetime commitment. If you want to change your loan terms, you can refinance your 30-year mortgage with a new loan. When you refinance a mortgage, your old loan is paid off with the proceeds from a new loan. If you can refinance to a lower interest rate, you may save money while also getting a lower monthly payment. Use a mortgage calculator or consult with a trusted financial professional to learn more about which could be financially best for your unique situation.
TIME Stamp: A popular path to home ownership
A 30-year mortgage is among the most popular methods to pay for a home. While they’re not perfect for everyone, they offer one of the best paths to homeownership for millions of homeowners.
When you shop around for the best interest rate, you’ll find the lowest-cost loan for your borrower profile and, one hopes, an affordable path to owning a home of your own.
Frequently asked questions (FAQs)
What is a good 30-year fixed mortgage rate?
The best 30-year mortgage rates change over time. You may find rates are higher or lower in a matter of days or weeks. Shop around to compare several lenders to find the best current rate for your situation.
The difference between interest rate and APR
Interest rate is a measure of how much a loan charges per year. APR is an inclusive rate of what a loan would charge per year, including interest and fees. APR is the best method of comparing the cost of multiple loans.
Which bank has the lowest interest rate on home loans?
The bank with the lowest interest rate changes frequently. As of this writing, the five lenders above were the lowest-cost lenders we could find. However, you should compare multiple lenders to find the lowest cost based on your credit score and other factors.
