September 26, 2025

Hold on to your home dreams! On September 25, 2025, mortgage rates have moved slightly higher. The popular 30-year fixed mortgage now stands at 6.45%, while the 15-year fixed sits at 5.77%, says Zillow. Even with the Federal Reserve cutting its rates recently, mortgage rates took a small jump – six basis points for the 30-year fixed and five for the 15-year fixed. Why? Treasury yields rose, pushing rates up. Here’s the quick scoop on mortgage rate today: - 30-year fixed: 6.45% - 20-year fixed: 6.07% - 15-year fixed: 5.77% - 5/1 ARM: 7.10% - 7/1 ARM: 7.17% - 30-year VA loan: 5.94% - 15-year VA loan: 5.44% When it comes to refinancing your mortgage, brace for a slightly higher rate. Zillow reports that 30-year refinance rates average at 6.52%. Other refinance options show modest increases too. Confused about how mortgage rates work? Mortgage rates are the cost you pay on borrowed money. Fixed rates stay the same throughout the loan period, like a 30-year fixed at a steady 6.45%. Adjustable-rate mortgages (ARMs) start with a fixed rate for a few years, then shift based on the market. For example, a 5/1 ARM fixes the rate for five years, then adjusts every year after. What controls these rates? Well, you have some power. Lenders look at your credit score, income versus debt ratio, and down payment size. The better you look on paper, the better rate you get! On the flip side, rates dance to the tune of economic conditions – if the economy wobbles, rates might drop to encourage borrowing, but a strong economy can ramp the rates up. Want to choose between 30-year and 15-year fixed mortgages? The 30-year fixed means lower monthly payments but more interest paid over time. The 15-year fixed demands higher monthly payments but cuts down your total interest and helps you own your home faster. Which banks offer the best deals? Data from 2024 shows Bank of America and Citibank lead the race, but don’t forget to peek at credit unions and other mortgage lenders too! Remember the headline-low mortgage rate of 2.65% back in January 2021? Today’s rates are higher, but smart shoppers keep an eye out for the perfect time to refinance – usually when they can save 1–2% on their rate after costs. In short, if you’re buying or thinking of refinancing, stay sharp on rates and lender options. "Refinancing is advisable if you can reduce your rate by 1–2%," experts say. Keep those options open and secure your dream home at the best possible cost!

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Tags: Mortgage rates, Refinance, 30-year fixed, 15-year fixed, Interest rates, Home loan,