<p><img src="https://static1.businessinsider.com/image/5fbd8cca32f2170011f71111-1667/4x3%20Best%20mortgage%20and%20refinance%20rates%20daily%20orange%20text.png" border="0" alt="Mortgage rates today" data-mce-source="Alyssa Powell/Business Insider" data-mce-caption="Below, find the best mortgage rates today."></p><p></p><bi-shortcode id="table-of-contents-sticky" class="mceNonEditable" data-type="h2">Table of Contents: Masthead Sticky</bi-shortcode><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Most mortgage and refinance rates have dropped since last Wednesday. The 10/1 ARM rates have increased slightly, though.</p><p>Both mortgage and refinance rates are at historic lows. If you're ready to apply for a mortgage, you may want to choose a <a href="https://www.businessinsider.com/personal-finance/fixed-rate-mortgage-vs-adjustable-rate-mortgage" target="_blank" rel="noopener">fixed-rate mortgage over an adjustable-rate mortgage</a> right now.</p><p>Mat Ishbia, CEO of<a href="https://www.uwm.com/" target="_blank" rel="noopener" data-analytics-module="body_link" data-analytics-post-depth="20" data-uri="2c68214c33041bf505d7d68446797ed4">United Wholesale Mortgage</a>, told Business Insider there isn't much of a reason to choose an ARM over a fixed rate these days.</p><p>ARM rates used to start lower than fixed rates for the first few years, and there was a chance your rate could decrease later. But fixed rates are lower than adjustable rates right now, so you probably want to lock in a low rate while you can.</p><div><div class="ca-widget" data-token="p83018dcddd4"></div><script async defer src="https://www.consumersadvocate.org/embeds/embedder.js'v=1"></script></div><h2>Mortgage rates on Wednesday, January 13, 2021</h2><div><div class="ca-widget" data-token="d04566cc21b7"></div><script async defer src="https://www.consumersadvocate.org/embeds/embedder.js'v=1"></script></div><table style="width: 100%; border-collapse: collapse; height: 127px;" border="1" cellpadding="10px"><tbody><tr style="height: 43px;"><td style="width: 25%; height: 43px; text-align: center;"><strong>Mortgage type</strong></td><td style="width: 25%; text-align: center; height: 43px;"><strong>Average rate today</strong></td><td style="width: 25%; text-align: center; height: 43px;"><strong>Average rate last week</strong></td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">15-year fixed</td><td style="width: 25%; text-align: center; height: 21px;">2.36%</td><td style="width: 25%; text-align: center; height: 21px;">2.44%</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">30-year fixed</td><td style="width: 25%; text-align: center; height: 21px;">3.18%</td><td style="width: 25%; text-align: center; height: 21px;">3.32%</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">7/1 ARM</td><td style="width: 25%; text-align: center; height: 21px;">4.12%</td><td style="width: 25%; text-align: center; height: 21px;">4.21%</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">10/1 ARM</td><td style="width: 25%; text-align: center; height: 21px;">4.11%</td><td style="width: 25%; text-align: center; height: 21px;">4.10%</td></tr></tbody></table><p><em>Rates from Ad Practitioners LLC.</em></p><p>Mortgage rates have decreased since last Wednesday, with the exception of 10/1 adjustable rates, which have increased by just one basis point.</p><p>Note that these are the national average rates for <a href="https://www.businessinsider.com/personal-finance/conventional-mortgage" target="_blank" rel="noopener">conventional mortgages</a>, which are what you probably think of as "regular mortgages." Rates may be different for <a href="https://www.businessinsider.com/personal-finance/government-home-loans" target="_blank" rel="noopener">government-backed mortgages</a> through the <a href="https://www.businessinsider.com/personal-finance/fha-loan" target="_blank" rel="noopener">FHA</a>, <a href="https://www.businessinsider.com/personal-finance/va-loans" target="_blank" rel="noopener">VA</a>, or <a href="https://www.businessinsider.com/personal-finance/usda-loan" target="_blank" rel="noopener">USDA</a>.</p><p>In general, mortgage rates are at all-time lows.Low rates are typically a sign of a struggling economy. Mortgage rates will probably stay low as the US continues to grapple with the COVID-19 pandemic.</p><h2>Refinance rates on Wednesday, January 13, 2021</h2><div><div class="ca-widget" data-token="f0307c6020cb"></div><script async defer src="https://www.consumersadvocate.org/embeds/embedder.js'v=1"></script></div><table style="border-collapse: collapse;" border="1" cellpadding="10px"><tbody><tr style="height: 43px;"><td style="width: 25%; height: 43px; text-align: center;"><strong>Mortgage type</strong></td><td style="width: 25%; text-align: center; height: 43px;"><strong>Average rate today</strong></td><td style="width: 25%; text-align: center; height: 43px;"><strong>Average rate last week</strong></td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">15-year fixed</td><td style="width: 25%; text-align: center; height: 21px;">2.63%</td><td style="width: 25%; text-align: center; height: 21px;">2.70%</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">30-year fixed</td><td style="width: 25%; text-align: center; height: 21px;">3.81%</td><td style="width: 25%; text-align: center; height: 21px;">3.83%</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">7/1 ARM</td><td style="width: 25%; text-align: center; height: 21px;">4.47%</td><td style="width: 25%; text-align: center; height: 21px;">4.53%</td></tr><tr style="height: 21px;"><td style="width: 25%; height: 21px; text-align: center;">10/1 ARM</td><td style="width: 25%; text-align: center; height: 21px;">4.60%</td><td style="width: 25%; text-align: center; height: 21px;">4.54%</td></tr></tbody></table><p><em>Rates from Ad Practitioners LLC.</em></p><p>The 15-year fixed refinance rates, 30-year fixed rates, and 7/1 adjustable rates are down since last Wednesday. The 10/1 ARM rates are up by six basis points.</p><h2>15-year fixed-rate mortgages</h2><p>With a <a href="https://www.businessinsider.com/personal-finance/15-year-mortgage-rates" target="_blank" rel="noopener">15-year fixed term</a>, you'll pay down your mortgage over 15 years, and your rate stays the same the entire time.</p><p>Rates on 15-year mortgages are lower than on longer terms. Between these low rates and paying off your mortgage relatively quickly, it's much more affordable overall to get a 15-year mortgage than a 30-year mortgage.</p><p>However, your monthly payments will be higher on a 15-year term than on a longer term. You're cramming the same <a href="https://www.businessinsider.com/personal-finance/mortgage-principal" target="_blank" rel="noopener">mortgage principal</a>into a shorter chunk of time, so you'll pay more each month.</p><h2>30-year fixed-rate mortgages</h2><p>A <a href="https://www.businessinsider.com/personal-finance/30-year-mortgage-rates" target="_blank" rel="noopener">30-year fixed-rate mortgage</a> is similar to a 15-year mortgage, except you'll pay off the mortgage over 30 years.</p><p>You'll pay a higher interest rate on a 30-year fixed mortgage than on 15-year mortgages. For a long time, you'd also pay a higher rate on a 30-year fixed loan than on an ARM. But right now, 30-year fixed rates the better deal.</p><p>Monthly payments are lower for 30-year terms than for shorter terms, because you're spreading payments out over a longer period of time.</p><p>You'll pay more in interest in the long term 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.</p><h2>Adjustable-rate mortgages</h2><p>With an <a href="https://www.businessinsider.com/personal-finance/adjustable-rate-mortgage" target="_blank" rel="noopener">adjustable-rate mortgage</a>, your rate stays the same for the first few years, then changes periodically.</p><p>For example, a 7/1 ARM locks in your rate for the first seven years, then alters it once per year. Similarly, a 10/1 ARM keeps your rate the same for the first 10 years, then it fluctuates annually.</p><p>ARM rates are at all-time lows right now, but a fixed-rate mortgage is still the better deal. The 30-year fixed rates are comparable to or lower than ARM rates. It could be in your best interest to lock in a low rate with a 30-year or 15-year fixed-rate mortgage rather than risk your rate increasing later with an ARM.</p><p>If you're considering 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.</p><h2>Tips for getting a great mortgage rate</h2><p>It could be a good day to apply for a mortgage if your finances are in a good placebut you don't necessarily have to hurry. Rates will probably stay low well into 2021, if not longer.</p><p>To get the best rate possible, consider taking some of the following steps before submitting an application:</p><ul><li><strong><a href="https://www.businessinsider.com/personal-finance/how-to-increase-your-credit-score-improve-credit" target="_blank" rel="noopener">Improve your credit score</a></strong> by paying down high-interest debt and making payments on time. Your score could also increase if you let your credit age.</li><li><strong>Save for a down payment.</strong> <a href="https://www.businessinsider.com/personal-finance/20-percent-down-payment-rule-mortgage-homebuying" target="_blank" rel="noopener">You don't necessarily need a 20% down payment</a> to get a good rate, but the more you save, the better your rate will likely be. If you don't have much for a down payment right now, you might consider waiting so you can save more.</li><li><strong>Lower your debt-to-income ratio.</strong> Your debt-to-income ratio is the amount you pay toward debts each month, divided by your gross monthly income. Lenders want to see a <a href="https://www.businessinsider.com/personal-finance/what-is-a-good-debt-to-income-ratio" target="_blank" rel="noopener">debt-to-income ratio of 36% or less</a>. Consider paying down some debts, such as credit cards or a car loan, to get a lower ratio.</li></ul><p>If you have a strong financial profile, it could be a good day to lock in a mortgage rate. But if not, you probably have time to improve your finances.</p><p><em>Laura Grace Tarpley is the associate editor of banking and mortgages at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews.</em></p><div><iframe src="https://smartasset.com/captivate/frame/umonjdcr" width="100%" height="630px" scrolling="auto" style="border: none;"></iframe></div><bi-shortcode id="related-content-module" class="mceNonEditable" data-type="more-mortgage-coverage" data-sheetname="More Mortgage Coverage">Related Content Module: More Mortgage Coverage</bi-shortcode><p><a href="https://www.businessinsider.com/personal-finance/best-mortgage-refinance-rates-today-wednesday-january-13-2021#comments">Join the conversation about this story »</a></p>
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