Today’s Mortgage and Refinance Rate: February 3, 2021

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The average rate for a 30-year fixed rate mortgage is 3.102%, compared to 3.086%.

Getting your finances in order is an essential part of preparing to buy a home. Recent and potential homebuyers have found they can afford more than they thought thanks to record mortgage rates, according to a new survey.

Today’s mortgage rates: 30-year fixed-rate loans, 15-year and over fixed-rate loans

Type of loan Average rate
30 year fixed rate loan 3.102%
15 year fixed rate loan 2.339%
30 year FHA loan 2.888%
30-year VA loan 2.924%
30-year Jumbo loan 3.57%
Source: Money | Date: February 2, 2021 | Rates assume a credit score of 700

Money’s Daily Mortgage Rates show the average rate offered by over 8,000 lenders in the United States on the previous business day. The rates reflect what a typical borrower with a credit score of 700 can expect to pay on a home loan right now. These rates were offered to people with a 20% deposit and include discount points.

Our daily rates are generally higher than the weekly rates benchmark rate published by Freddie Mac, which are aimed at buyers with the highest credit scores.

Money’s daily mortgage data also shows that borrowers with the highest credit scores – 740 and above – were offered a rate of 2.903% on average. People will have lower credit scores – 620 or less – posted rates of 3.968%.

How to get the lowest mortgage rate?

You may be able to negotiate a better mortgage rate if you shop around or have other accounts with the lender. (To get started, take a look at Money’s choices for the best mortgage lenders.) Lately some lenders have increased advertised rates to control demand so you may be offered a lower rate if you contact directly.

Mortgage rates also vary from state to state. Illinois borrowers got the lowest mortgage rates at 3.033% on Tuesday. Mortgage seekers in Nevada recorded the highest average rate, at 3.144%.

Today’s refinance rate

Today’s survey also shows that the proposed 30-year refinance rate for someone with a credit score of 740 was 3.189% on Tuesday. In February 2020, the average mortgage rate (including fees) was around 3.8%.

Mortgage refinancing rate table
Type of loan Average rate
30 year fixed rate loan 3.189%
15 year fixed rate loan 2.596%
30 year FHA loan 3.315%
30-year VA loan 3.379%
30-year Jumbo loan 3.517%
Source: Money | Date: February 2, 2021 | Rates assume a credit score of 740

What else is happening in the housing market today

More than two-thirds of recent and potential home buyers were surprised at how much they could actually afford once they started their home search, according to a recent survey from

For some, it was a positive surprise: 47% of those polled found they could afford more than they thought. Meanwhile, 21% found they could afford less.

“You need to know what you can afford before you venture too far into buying a home,” said Lexie Holbert, home and lifestyle expert at you’re saving every month is a good place to start thinking about your mortgage. “

Record-breaking mortgage rates in 2020 have helped many first-time homebuyers invest in larger homes on budget. While the low rates have made home buying more affordable for many, they have also created a hyper-competitive market.

According to the survey, 49% of buyers and 39% of potential buyers have outbid a home. About 20% of first-time buyers outbid five times before they could finally buy a house.

During this time, many of those who were successful in their home search found they had to compromise on what they wanted. Twenty-one percent had to expand their search to cheaper domains, while 20% found they needed to increase their budget to get all the features they wanted in a home. Another 18% had to eliminate some functionality.

“Especially as a newbie it is very important to stay within your budget when doing research online so that you don’t fall in love with something you cannot afford,” added Holbert.

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