<p><img src="https://static6.businessinsider.com/image/601423766dfbe10018e00b4d-1666/Best%20mortgage%20and%20refinance%20rates%20daily%20Yellow%204x3_2021.png" border="0" alt="Mortgage rates today" data-mce-source="Alyssa Powell/Insider" data-mce-caption="Below, find the best mortgage and refinance 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>Some mortgage and refinance rates have increased since last week, while others have decreased. In any case, rates are still at all-time lows.</p><p>If you're looking to go for a mortgage or refinance, you might want to consider a<a href="https://www.businessinsider.com/personal-finance/fixed-rate-mortgage-vs-adjustable-rate-mortgage" target="_blank" rel="noopener">fixed-rate mortgage instead of an adjustable-rate mortgage</a>.</p><p>Darrin English, Senior Community Development Loan Officer at Quontic Bank, told Insider ARMs were a better deal for some borrowers in the past. Now, you can lock in a lower fixed rate for the foreseeable future without risking a future ARM rate increase.</p><p>You may want to secure a<a href="https://www.businessinsider.com/personal-finance/average-mortgage-interest-rate" target="_blank" rel="noopener">low rate</a>for 15 or 30 years 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 id="mortgage-rates-for-thursday,-february-11,-2021">Mortgage rates for Thursday, February 25, 2021</h2><table style="height: 127px; width: 100%; border-collapse: collapse;" border="1" cellpadding="10px"><tbody><tr style="height: 43px;"><td style="width: 15.3185%; height: 43px; text-align: center;"><strong>Mortgage type</strong></td><td style="width: 19.1401%; text-align: center; height: 43px;"><strong>Average rate today</strong></td><td style="width: 20.3981%; text-align: center; height: 43px;"><strong>Average rate last week</strong></td><td style="width: 20.1433%; text-align: center;"><strong>Average rate last month</strong></td></tr><tr style="height: 21px;"><td style="width: 15.3185%; height: 21px; text-align: center;">15-year fixed</td><td style="width: 19.1401%; text-align: center; height: 21px;">2.54%</td><td style="width: 20.3981%; text-align: center; height: 21px;">2.44%</td><td style="width: 20.1433%; text-align: center;">2.32%</td></tr><tr style="height: 21px;"><td style="width: 15.3185%; height: 21px; text-align: center;">30-year fixed</td><td style="width: 19.1401%; text-align: center; height: 21px;">3.38%</td><td style="width: 20.3981%; text-align: center; height: 21px;">3.26%</td><td style="width: 20.1433%; text-align: center;">3.09%</td></tr><tr style="height: 21px;"><td style="width: 15.3185%; height: 21px; text-align: center;">7/1 ARM</td><td style="width: 19.1401%; text-align: center; height: 21px;">4.33%</td><td style="width: 20.3981%; text-align: center; height: 21px;">4.44%</td><td style="width: 20.1433%; text-align: center;">3.98%</td></tr><tr style="height: 21px;"><td style="width: 15.3185%; height: 21px; text-align: center;">10/1 ARM</td><td style="width: 19.1401%; text-align: center; height: 21px;">4.15%</td><td style="width: 20.3981%; text-align: center; height: 21px;">4.12%</td><td style="width: 20.1433%; text-align: center;">3.98%</td></tr></tbody></table><p><em>Rates from Money.com</em></p><div><div class="ca-widget" data-token="q02361a1e0ea"></div><script async defer src="https://www.consumersadvocate.org/embeds/embedder.js'v=1"></script></div><p>Since last Thursday, rates on fixed mortgages and 10/1 ARMs have gone up, and all rates have increased significantly since last month. However, the rates on 7/1 ARMs have ticked down by 11 basis points since last week. Rates across the board are still at historic lows.</p><bi-shortcode id="related-article-module" class="mceNonEditable" data-type="5d2cdf5ea17d6c79981ecc53" data-title="How to buy a house with no money down" data-url="https://www.businessinsider.com/personal-finance/how-to-buy-a-house-with-no-money-down-home-loans" data-thumbnail="https://i.insider.com/5d2ce916a17d6c02a3474583" data-shortcode-display-text="Related Article Module: How to buy a house with no money down"></bi-shortcode><p>We're showing you the average rates nationwide for <a href="https://www.businessinsider.com/personal-finance/conventional-mortgage" target="_blank" rel="noopener">conventional mortgages</a>, which may be what you consider "normal mortgages." You might get an improved rate with a<a href="https://www.businessinsider.com/personal-finance/government-home-loans" target="_blank" rel="noopener">government-backed mortgage</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>, provided you're eligible.</p><p>Mortgage rates remain at striking lows in general. Low rates are commonly an indicator of a floundering economy. Mortgage rates will likely stay low as the US continues to bear the brunt of the economic fallout of the COVID-19 pandemic.</p><h2 id="mortgage-rates-for-thursday,-february-11,-2021">Refinance rates for Thursday, February 25, 2021</h2><table style="height: 128px; width: 100%; border-collapse: collapse;" border="1" cellpadding="10px"><tbody><tr style="height: 43px;"><td style="width: 130px; height: 43px; text-align: center;"><strong>Mortgage type</strong></td><td style="width: 172px; text-align: center; height: 43px;"><strong>Average rate today</strong></td><td style="width: 217px; text-align: center; height: 43px;"><strong>Average rate last week</strong></td><td style="width: 214px; text-align: center; height: 43px;"><strong>Average rate last month</strong></td></tr><tr style="height: 21px;"><td style="width: 130px; height: 21px; text-align: center;">15-year fixed</td><td style="width: 172px; text-align: center; height: 21px;">2.88%</td><td style="width: 217px; text-align: center; height: 21px;">2.71%</td><td style="width: 214px; text-align: center; height: 21px;">2.58%</td></tr><tr style="height: 21px;"><td style="width: 130px; height: 21px; text-align: center;">30-year fixed</td><td style="width: 172px; text-align: center; height: 21px;">3.82%</td><td style="width: 217px; text-align: center; height: 21px;">3.68%</td><td style="width: 214px; text-align: center; height: 21px;">3.6%</td></tr><tr style="height: 21px;"><td style="width: 130px; height: 21px; text-align: center;">7/1 ARM</td><td style="width: 172px; text-align: center; height: 21px;">4.89%</td><td style="width: 217px; text-align: center; height: 21px;">4.99%</td><td style="width: 214px; text-align: center; height: 21px;">4.42%</td></tr><tr style="height: 21px;"><td style="width: 130px; height: 22px; text-align: center;">10/1 ARM</td><td style="width: 172px; text-align: center; height: 22px;">4.64%</td><td style="width: 217px; text-align: center; height: 22px;">4.69%</td><td style="width: 214px; text-align: center; height: 22px;">4.48%</td></tr></tbody></table><p><em>Rates from Money.com</em></p><div><div class="ca-widget" data-token="zb84ece1fcf4"></div><script async defer src="https://www.consumersadvocate.org/embeds/embedder.js'v=1"></script></div><p>All fixed mortgage refinance rates have ticked up since last week. On the other hand, adjustable refinance rates have decreased marginally since last Thursday. You can still lock in a rate below 4% to refinance into a fixed-rate mortgage.</p><h2><strong>How to get a low</strong> mortgage<strong> rate</strong></h2><p>Fixed and adjustable mortgage rates have wavered over the past weekthough they are still at striking lows. It may be a good opportunity to secure a low mortgage rate.</p><p>At the same time, you don't need to be too concerned about a rate increase anytime soon, as rates will likely stay low well into 2021, if not longer. There's no need to hurry to get a mortgage or refinance. You have the chance to better your financial profile and get an improved rate.</p><p>To get an optimal rate, think about these steps before applying:<em></em></p><ul><li><a href="https://www.businessinsider.com/personal-finance/how-to-increase-your-credit-score-improve-credit" target="_blank" rel="noopener"><strong>Increase your credit score</strong></a><strong></strong>by making timely payments, paying off debts, or letting your credit age. You might want to<a href="https://www.businessinsider.com/personal-finance/how-to-get-free-credit-report-check-credit" target="_blank" rel="noopener">request and review a copy of your credit report</a>to find any errors that may be tanking your score</li><li><a href="https://www.businessinsider.com/personal-finance/how-to-save-down-payment-house" target="_blank" rel="noopener"><strong>Save more for a down payment</strong></a><strong>.</strong>The minimum amount of money required for your down payment will depend on<a href="https://www.businessinsider.com/personal-finance/types-of-mortgage-loans" target="_blank" rel="noopener">which type of mortgage</a>you want. You have a greater likelihood of scoring an improved interest rate from your lender with a higher down payment.</li><li><strong>Lower your debt-to-income ratio.</strong>Your<a href="https://www.businessinsider.com/personal-finance/how-to-calculate-debt-to-income-ratio" target="_blank" rel="noopener">DTI ratio</a>is the amount you pay toward debts each month, divided by your gross monthly income. Many lenders want to see a DTI ratio of 36% or less. To improve your ratio, pay down debts or find ways to boost your income.</li><li><strong>Choose a</strong><a href="https://www.businessinsider.com/personal-finance/government-home-loans" target="_blank" rel="noopener"><strong>federally-backed mortgage</strong></a><strong>.</strong>If you're eligible, you might consider a<a href="https://www.businessinsider.com/personal-finance/usda-loan" target="_blank" rel="noopener">USDA loan</a> (for low-to-moderate income borrowers buying in a rural area), a <a href="https://www.businessinsider.com/personal-finance/va-loans" target="_blank" rel="noopener">VA loan</a> (for military members and veterans), or an <a href="https://www.businessinsider.com/personal-finance/fha-loan" target="_blank" rel="noopener">FHA loan</a> (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won't need a down payment for USDA or VA loans.</li></ul><p>You can lock in a low rate now if your finances are looking good, but you don't need to rush to get a mortgage or refinance if you're not prepared.</p><div><iframe src="https://smartasset.com/captivate/frame/umonjdcr" width="100%" height="630px" scrolling="auto" style="border: none;"></iframe></div><h2 id="how-do-15-year-fixed-mortgage-rates-work'"><strong>15-year fixed mortgage rates</strong></h2><p>If you take out a<a href="https://www.businessinsider.com/personal-finance/15-year-mortgage-rates" target="_blank" rel="noopener">15-year fixed mortgage</a>, you'll pay the same interest rate for your entire 15-year loan term.</p><p>You'll make higher monthly payments with a 15-year fixed mortgage than with a 30-year fixed mortgage, because you're paying down the same <a href="https://www.businessinsider.com/personal-finance/mortgage-principal" target="_blank" rel="noopener">mortgage principal</a>in half the time.</p><p>However, a 15-year term is less expensive than a 30-year fixed mortgage. You'll pay a lower interest rate, and it will take you half the time to pay off your mortgage.</p><h2>30-year fixed mortgage rates</h2><p>With a<a href="https://www.businessinsider.com/personal-finance/30-year-mortgage-rates" target="_blank" rel="noopener">30-year fixed mortgage</a>, you pay off your loan over three decades with the same interest rate the entire time.</p><p>You'll pay a higher amount of total interest with a 30-year fixed mortgage than a shorter term because you're paying a higher interest rate for an extended amount of time.</p><p>On the bright side, you'll cough up less per month with a 30-year term than a 15-year term because you're spreading out your payments over a longer period.</p><h2>Adjustable mortgage rates</h2><p>An adjustable-rate mortgage, also known as an ARM, will set your rate for a predetermined period. Then your rate will change periodically. A 7/1 ARM keeps your rate constant for seven years, then your rate will fluctuate annually.</p><p>You may still want to get a fixed-rate mortgage, even though ARM rates are at historic lows. You can secure a low rate for the future without risking an increased rate later with an ARM.</p><p><a href="https://www.businessinsider.com/personal-finance/adjustable-rate-mortgage" target="_blank" rel="noopener">If you're considering getting an ARM</a>, ask your lender what your rates would be if you chose a fixed-rate versus an adjustable-rate mortgage.</p><p>Ensure your finances are in order before getting a mortgage or refinancing.</p><p><em>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.</em></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. 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.</em></p><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/mortgage-refinance-rates-today-february-25-2021-2#comments">Join the conversation about this story »</a></p>
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