Today's mortgage and refinance rates: May 9, 2021 | Rates dip

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Almost all mortgage and refinance rates have decreased since last Sunday, and since this time last month.

It’s a good day to lock in a low mortgage rate. You’ll probably want a fixed-rate mortgage rather than an adjustable-rate mortgage, though.

Fixed mortgage rates are lower than adjustable rates right now. An adjustable rate also increases or decreases after a certain amount of time. Because rates are at all-time lows right now, it’s very likely the rate would go up. It’s a safer bet to lock in a low rate while you can.

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Mortgage rates on Sunday, May 9, 2021

Conventional rates from Money.com; government-backed rates from RedVentures.

Learn more and get offers from multiple lenders »

Fixed-rate mortgages are significantly lower than adjustable-rate mortgages these days.

Rates for conventional mortgages (which might be what you think of “regular mortgages”) are already low right now. But mortgages backed by the FHA and VA usually pay even lower rates, depending on which term length you choose. Government-backed mortgages are great options if you’re eligible to apply.

Refinance rates on Sunday, May 9, 2021

Conventional rates from Money.com; government-backed rates from RedVentures.

Compare offers from refinancing lenders »

Today, the lowest refinance rates are for 15-year fixed-rate mortgages and VA mortgages.

How to get the best mortgage rate

Mortgage and refinance rates are low, so it could be a good day to lock in a rate. But you may not need to rush to get a low rate.

Rates will probably stay low for the foreseeable future. You have time to improve your finances, which could result in a better interest rate. Consider the following steps:

• Increase your credit score by paying all your bills on time. You could also pay down debts or let your credit age.
• Save for a larger down payment. You may need between 0% and 20% for a down payment, depending on which type of mortgage you get. But if you can pay more than the minimum upfront, a lender might reward you with a lower rate.
• Lower your debt-to-income ratio. Your DTI ratio is the amount you pay toward debts each month, divided by your gross monthly income. The lower your DTI ratio, the better. Consider paying down debts more aggressively to get a better ratio.

You can secure a low rate today if your finances are in good shape, but you don’t need to rush to get a mortgage or refinance if you’re not ready.

Mortgage and refinance rates trends

Mortgage rate trends

Fixed mortgage rates have gone down a little since last Sunday, and 7/1 ARM rates have decreased a bit more significantly. The 10/1 ARM rates have gone up by just two basis points. Mortgage rates are down since April 9.

Refinance rate trends

Refinance rates have decreased since last Sunday, and they’re down more drastically since this time last month.

How do 15-year fixed mortgage rates work?

If you take out a 15-year fixed mortgage, it will take you 15 years to pay off your loan, and you’ll pay the same interest rate the entire time.

You’ll pay more per month with a 15-year fixed mortgage than a 30-year fixed mortgage, because you’ll pay off the same mortgage principal in half the time. 

On the plus side, a 15-year term will cost less than a longer term. You’ll pay off the mortgage years in fewer years, and you’ll get a lower interest rate.  

How do 30-year fixed mortgage rates work?

With a 30-year fixed mortgage, you’ll pay off your loan over 30 years, and your rate stays locked in for the entire time. 

You’ll pay a higher interest rate on a 30-year fixed mortgage than on a shorter-term fixed-rate mortgage. But you may pay a lower rate on a 30-year fixed mortgage than on an adjustable-rate mortgage.

Monthly payments are lower for 30-year mortgages than for shorter terms, because you’re spreading payments out over a longer period of time.

You’ll pay more in interest in the long run with a 30-year term than you would for a shorter term, because a) the rate is higher, and b) you’ll be paying interest for longer.

How do ARMs work?

With an adjustable-rate mortgage, your rate is the same for the first several years. Then the rate fluctuates regularly.

A 7/1 ARM locks in your rate for the first seven years, then changes it once per year. A 10/1 ARM keeps your rate the same for a decade, then alters it once per year. Some lenders offer ARMs that alter your rate more or less frequently, like six months or five years.

ARM rates are low right now, but fixed-rate mortgages are still the better deal. Fixed rates are starting lower than ARM rates, and because rates are at all-time lows, you may want to lock in a good rate rather than risk an increase later.

If you’re thinking about getting an ARM, you should still ask your lender about what your individual rates would be if you chose a fixed-rate versus adjustable-rate mortgage.

How do government-backed mortgages work?

We’re also providing rates for FHA and VA home loans, two kinds of government-backed mortgages.

Government mortgages are backed by government agencies. The government pays the lender if you fail to make mortgage payments.

Government-backed home loans are less risky than conventional mortgages, so lenders have more lenient requirements for your credit score, debt-to-income ratio, or down payment. Government mortgages also come with lower interest rates. These mortgages can be great deals if you qualify. Here are your options:

• FHA mortgage: FHA loans are mostly for people with lower credit scores. But these mortgages aren’t limited to a certain type of person, like VA and USDA loans.
• VA mortgage: You may be eligible if you’re an active military member or veteran.
• USDA mortgage: You could qualify if you live in a rural area and fall under a certain income limit.

Mortgage and refinance rates by state

Check the latest rates in your state at the links below. 

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Utah
Vermont
Virginia
Washington
Washington DC
West Virginia
Wisconsin
Wyoming

About the authors

Laura Grace Tarpley is an editor at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, and bank reviews. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

Best Mortgage Rates Today: Sunday May 9, 2021

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