Everyone wants to know: “What are rates today?” But mortgage rates are more nuanced than a single number. Understanding how rates work — APR, points, fixed vs. ARM, and rate locks — helps you make smarter decisions and save real money.
“Nothing Stays Fixed for 30 Years.”
What Are Mortgage Rates Today?
Mortgage rates change daily based on bond market conditions, economic data, and Federal Reserve policy. I don’t publish specific rates on this site because they move too quickly — a rate I quote on Monday could be different by Wednesday.
What I do instead is show you today’s rates in a personalized video comparison that factors in your credit score, loan program, down payment, and property type. Generic online rates don’t account for your specific situation. Let me run the numbers for you.
Will Rates Go Down This Year?
Nobody can predict rates with certainty — and anyone who says they can is guessing. Rates are influenced by inflation data, Federal Reserve decisions, employment reports, and global economic conditions.
Here’s what I tell my clients: marry the house, date the rate. If you find the right home at a payment you can afford, buy it. If rates drop later, refinancing is always an option. “Nothing stays fixed for 30 years” — and that includes your rate.
Should I Lock My Loan Now?
Once you’re under contract on a home, I can lock your interest rate for a set period — typically 30 to 60 days — to protect you from rate increases while your loan is being processed. If rates go up during that period, your locked rate stays the same. If they go down, some locks allow a “float down” to capture the improvement.
The decision of when to lock depends on your closing timeline and market conditions. I monitor rates closely and advise you on the optimal timing. If you’re still shopping and haven’t made an offer yet, a rate lock doesn’t apply yet — but I can give you a rate quote to budget with.
Is It Worth Paying Points?
Discount points let you lower your interest rate by paying upfront. One point equals 1% of the loan amount and typically reduces your rate by about 0.25%.
For example, on a $500,000 loan, one point costs $5,000 and might reduce your rate from 6.5% to 6.25% — saving about $85/month. Your breakeven point would be roughly 59 months (just under 5 years). If you plan to stay in the home longer than 5 years, points save you money. If you plan to sell or refinance sooner, you won’t recoup the upfront cost.
Points are a personal decision. I’ll calculate your exact breakeven timeline so you can decide with confidence.
What Is APR?
APR (Annual Percentage Rate) is a broader measure of your loan’s cost than the interest rate alone. It includes:
- Your interest rate
- Lender origination fees
- Discount points
- Mortgage insurance premiums
- Some closing costs
APR gives you a more complete picture of what the loan actually costs. Think of it as the “true cost” number. When comparing loans from different lenders, APR helps you do an apples-to-apples comparison.
Why Is My APR Higher Than My Interest Rate?
Your APR is higher than your base interest rate because it factors in additional costs — lender fees, mortgage insurance, and certain closing costs. The bigger the gap between your rate and APR, the more fees are baked into the loan.
A loan with a 6.5% interest rate and a 6.8% APR has more fees built in than a loan with a 6.6% rate and a 6.7% APR. I break this down for every client in a video so you can see exactly what you’re paying and why.
Fixed Rate vs. ARM — Which Is Better?
A fixed-rate mortgage locks in your interest rate for the entire loan term (usually 30 or 15 years). Your principal and interest payment never changes. Predictable, stable, simple.
An ARM (Adjustable-Rate Mortgage) starts with a fixed rate for an initial period (typically 5, 7, or 10 years), then adjusts periodically based on market conditions. ARMs often start with lower rates than fixed mortgages.
| Factor | Fixed Rate | ARM |
|---|---|---|
| Rate stability | Never changes | Changes after fixed period |
| Starting rate | Higher | Often lower |
| Best for | Long-term homeowners | Shorter-term or plan to refinance |
| Risk | None | Rate can increase |
Is a 5/6 ARM a Good Idea?
A 5/6 ARM has a fixed rate for the first 5 years, then adjusts every 6 months. It can be smart if you plan to sell or refinance within 5 years — you benefit from the lower initial rate. If you’re staying longer, there’s risk that your rate could increase after the fixed period.
I model both scenarios for my clients so you can see the worst-case ARM outcome compared to a fixed rate. The goal is to make a decision you’re comfortable with — not just today, but 5 and 10 years from now.
Want to see today’s rates for your situation?
I’ll run a personalized comparison showing your exact rate, APR, and monthly payment — including a video walkthrough of your options. No generic online calculator — real numbers for your real situation.