For most of 2020 and 2021, fixed mortgage rates were significantly lower than adjustable rates. Now, adjustable rates are lower than they used to be and competitive with fixed rates.

You may like an adjustable-rate mortgage if you plan to move before the initial rate period ends, because then you won’t risk a rate increase. But because rates are relatively low, rates will likely be higher by the time your rate period ends. If you plan to stay in the home for a long time, a fixed-rate mortgage could be a better deal so you keep a low rate.

Mortgage rates today

Mortgage refinance rates today

Mortgage calculator

Use ourĀ free mortgage calculatorĀ to see how today’s interest rates will affect your monthly payments.

Mortgage Calculator

$1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.

Will mortgage rates go up in 2022?

The


Federal Reserve

has been aggressively buying assets, including mortgage-backed securities, to help the US economy during the COVID-19 pandemic. This has been one factor keeping mortgage rates low.

In early November, the Fed announced that it will begin tapering asset purchasing. Then it said in December that it will be tapering purchasing at twice the speed than it originally predicted, and it plans to increase the federal funds rate three times in 2022.

Average mortgage rates have ticked up a little recently, and the Fed’s announcements indicate that mortgage rates will probably continue to gradually increase in 2022. You may want to lock in a low mortgage rate if you’re worried about rates going up this year.

What is a fixed-rate mortgage vs. adjustable-rate mortgage?

In the past few weeks, fixed mortgage rates have been inching upward as adjustable rates drop. An adjustable-rate mortgage (ARM) could be a good deal depending on your situation.

Fixed-rate mortgages lock in your rate for the entire life of your loan. Adjustable-rate mortgages lock in your rate for the first few years, then your rate goes up or down periodically.

Because adjustable rates are starting low, they are worthwhile options if you plan on selling your home before the interest rate changes. For instance, if you get a 7/1 ARM and want to move before seven years, you won’t risk paying a higher rate later.

But if you want to buy a forever home, a fixed rate could still be a better fit. Fixed rates are relatively low, and you won’t chance your rate increasing in a few years.

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