Story continues

Mortgage interest rates have taken a sharp turn lower. According to Zillow, the 30-year fixed mortgage rate fell 16 basis points Friday to 6.20%. The 15-year rate dropped 14 basis points to 5.38%. Shop around with three or four mortgage lenders to compare their rates and find the best deal.

Dig deeper: The best mortgage lenders for first-time home buyers

Here are the current mortgage rates, according to the latest Zillow data:

• 30-year fixed: 6.20%

• 20-year fixed: 5.63%

• 15-year fixed: 5.38%

• 5/1 ARM: 6.24%

• 7/1 ARM: 6.18%

• 30-year VA: 5.66%

• 15-year VA: 5.15%

• 5/1 VA: 5.52%

Remember, these are the national averages and rounded to the nearest hundredth.

Learn more: 8 strategies for getting the lowest mortgage rates

These are today’s mortgage refinance rates, according to the latest Zillow data:

• 30-year fixed: 6.23%

• 20-year fixed: 5.73%

• 15-year fixed: 5.47%

• 5/1 ARM: 6.48%

• 7/1 ARM: 6.35%

• 30-year VA: 5.76%

• 15-year VA: 5.16%

• 5/1 VA: 5.60%

Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

Read more: Is now a good time to refinance your mortgage?

Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.

Our free mortgage calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.

The average 30-year mortgage rate today is 6.20%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

The average 15-year mortgage rate is 5.38% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.

Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.20% rate, your monthly payment toward the principal and interest would be about $1,827, and you’d pay $361,467 in interest over the life of your loan — on top of that original $300,000.

If you get that same $300,000 mortgage with a 15-year term and a 5.38% rate, your monthly payment would jump to $2,432. But you’d only pay $137,794 in interest over the years.

With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.

An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.

Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.

Dig deeper: Fixed-rate vs. adjustable-rate mortgages

Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.

When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.

Learn more: 6 tips for choosing a mortgage lender

According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.20%, and the average 15-year mortgage rate is 5.38%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

The average 30-year fixed mortgage rate is 6.20% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).

Mortgage rates aren’t expected to drop drastically in the near future, though they might inch down here and there.

The HELOC interest rate today sits under 9%. However, you want to remember that your home equity line of credit interest rate will likely begin much lower than that. Introductory rates are usually well below prevailing market rates.

Dig deeper: Is it a good idea to get a HELOC? Here are the pros and cons.

According to Bank of America, the largest HELOC lender in the country, today’s average APR on a 10-year draw HELOC remains 8.72%. That is a variable rate that kicks in after a six-month introductory APR of 6.49% in most U.S. states.

Homeowners have a huge amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That’s the third-largest amount of home equity on record.

With mortgage rates lingering in the mid-6% range, homeowners are not going to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage?

Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative.

HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%.

Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.

And average national HELOC rates can include “introductory” rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.

You don’t have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.

The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.

Meanwhile, you’re paying down your low-interest-rate primary mortgage like the wealth-building machine you are.

Today, LendingTree is offering a HELOC rate as low as 6.75% for a credit line of $150,000. That’s likely an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.

The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don’t pay interest on what you don’t borrow.

Rates vary so much from one lender to the next that it’s hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.

For homeowners with low primary mortgage rates and a chunk of equity in their house, it’s probably one of the best times to get a HELOC. You don’t give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.

If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That’s for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.