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What Is The Average 30 Year Fixed Mortgage Rate?

By Stacy Williams

What is the average 30-year fixed mortgage rate?  Read here to find out what the average fixed rate mortgage rate is!

When purchasing a home, one of the most overlooked aspects is deciding which type of mortgage product to get.  The most common of all mortgages is the 30-year fixed rate mortgage.  While many people see the 30-year fixed rate mortgage average advertised frequently, they do not considering other aspects that affect the 30-year fixed rate mortgage or how it compares to other products.

Comparison to Other Products

The average 30-year fixed rate mortgage is normally higher than other mortgage products.  The 30-year fixed rate mortgage, which is presently about 5.10% nationwide, is normally about 0.50% to 0.60% higher than the 15-year mortgage.  This rate is higher because the 30-year mortgage is riskier to lenders as it will be paid off over a longer period of time, which increases the borrower’s probability of default.

Worthiness of Borrower

The first aspect that affects the 30-year mortgage rate is the worthiness of the borrower.  While a mortgage lender may presently advertise the average 30-year mortgage with a 5.10% rate, that rate is reserved for only the strongest borrowers.  If you have a credit score below 720, less than a 20% down payment, or a questionable stream of income, the actual rate you are offered could vary significantly.

Location

The second aspect that affects the 30-year mortgage rate is the location of the home that you are buying.  The average 30-year mortgage rate can vary significantly from one city or state to the next.  This is because certain cities or states have different laws governing foreclosures, or because certain areas have higher rates of mortgage defaults.  In fact, some areas have been hit so hard by mortgage defaults that various mortgage lenders refuse to lend to someone purchasing a home in a hard hit area.

Related posts:

1. What Is The Average 15 Year Fixed Mortgage Rate?
2. Will I Be Better Off With A 25 Year Fixed Rate Mortgage?
3. Should I get a 30-year or a 15-year fixed mortgage?
4. Why Should I Get A 30 Year or A 15 Year Fixed Mortgage Rate?
5. Is a 50 Year Fixed Mortgage Really a Good Idea?