The average 15-year fixed mortgage APR is 4,890%, according to Bankrate's latest survey of the country's top mortgage lenders. The interest rate is the cost of borrowing money, while the APR is the annual cost of the loan, as well as the lender's fees and other expenses associated with obtaining a mortgage. If you don't fix your interest rate, rising interest rates could force you to make a higher down payment or pay points in your closing agreement to reduce interest rate costs. First, choose between purchase rates or refinance rates by alternating between the two options at the top of the table.

That's why the APR for a mortgage is usually higher than the interest rate, and that's why it's such an important figure when comparing loan offers. The interest rate on your mortgage affects the amount you'll pay each month, as well as the total interest costs you'll pay over the life of your loan. Comparing quotes from three to four lenders ensures that you get the most competitive mortgage rate for you. If you can save at least 20% for your down payment, you may stop paying for private mortgage insurance and qualify for better interest rates.

With an adjustable rate mortgage (ARM), the interest rate may change periodically over the life of the loan. If the lender doesn't process the loan before the rate limit expires, you'll need to negotiate an extension of the blockade or accept the current market exchange rate at that time. We include both the interest rate and the annual percentage rate (APR), which includes additional fees from lenders, so you can get a better idea of the total cost of the loan. The purpose of these average rates is to give you an overview of general market trends and they may not reflect the specific rates available to you.

The mortgage rate is the cost of borrowing money, while the APR also takes into account financing costs and charges. With higher interest rates than they have been in a decade, fewer people can save money by refinancing at a lower rate. Fixed rates never change over the life of your loan, and in exchange for this certainty, the rate is higher on long-term loans. Your credit score has one of the biggest impacts on the mortgage rate, as it's a measure of how likely you are to repay the loan on time.

Finding the best mortgage rate is a matter of knowing your goals and choosing the right tool to do the job.