How to Compare 30 Year Fixed Mortgage Rates
You can use a basic mathematical formula to determine your monthly 30-year fixed rate mortgage payment using your desired loan term and interest rate. Other lender-specific factors such as points and fees will influence the overall cost of your loan. Using a simple online tool, you can compare a variety of different lenders and choose the one that best suits your needs and budget.
- Difficulty:
- Easy
Instructions
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1
Go to Interest.com and select the option to "Compare Rates" from the menu in the left sidebar.
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2
Select your state and city from the drop down menu or type your Zip code in the text field.
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Indicate the purpose of your loan. You will have the option to choose whether you are making a new purchase or refinancing your existing home loan.
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Type in the dollar amount you would like to borrow.
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Choose the fixed-rate loan type from the menu of options. There also are interest-only fixed rate, ARM (adjustable rate mortgage) and interest-only ARM loan types available if you'd like to compare your monthly payment. Select the 30-year loan term from the drop-down list.
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Read the comparison chart generated by the website based on your specifications. You'll be given a list of lenders in your area along with their loan fees, interest rate and corresponding APR, points, estimated monthly payment and how long the rate quote is valid. Click on the + symbol next to the offers that interest you to compare them side-by-side.
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Buy a monthly interest amortization tables book or borrow one from your local library if you do not have access to a computer. You'll find a table that has interest rates listed from 2 percent to 25.75 percent and terms from 1 to 40 years. Find the dollar amount that is closest to your desired loan amount to get your monthly payment.
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Tips & Warnings
Your total monthly payment on a 30-year mortgage will include principal (the amount you borrow), interest, plus any private mortgage insurance (required when you borrow more than 80 percent of the sale price) applicable. Additionally, your monthly payment will include an escrow amount if your lender requires or if you elect to pay in advance for your property tax and homeowners insurance.
The rate results you receive may vary from your actual loan costs. Once the lender enters your specific financial data, your rate could increase or decrease based on your income, expenses, credit score and type of loan.
