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What Are Current Mortgage Rates in 2026?
Mortgage rates in 2026 remain elevated compared to the historic lows of 2020–2021, though they have moderated from their 2023 peaks. The average 30-year fixed mortgage rate is currently in the 6.5%–7.0% range for well-qualified borrowers.
Average Rates by Loan Type (2026)
| Loan Type | Avg Rate |
|---|---|
| 30-year fixed | 6.75% |
| 15-year fixed | 6.10% |
| 20-year fixed | 6.40% |
| 5/1 ARM | 6.20% |
| FHA 30-year | 6.50% |
| VA 30-year | 6.25% |
| Jumbo 30-year | 6.90% |
Rates shown are national averages for well-qualified borrowers. Your rate will vary based on credit score, loan-to-value ratio, loan type, and lender.
How Much House Can I Afford?
The standard rule is to keep your total monthly housing costs — including principal, interest, taxes, and insurance (PITI) — below 28% of your gross monthly income. Your total debt payments should stay below 36%.
Affordability by Income (2026)
| Annual Income | Max Home Price* |
|---|---|
| $60,000 | ~$210,000 |
| $80,000 | ~$280,000 |
| $100,000 | ~$350,000 |
| $125,000 | ~$440,000 |
| $150,000 | ~$525,000 |
| $200,000 | ~$700,000 |
*Assumes 20% down, 6.75% rate, 30-year term, and no other significant debt. Actual affordability varies by debt load, location, and lender.
Frequently Asked Questions
How accurate is this mortgage calculator?
Our calculator uses the standard mortgage payment formula and provides highly accurate principal and interest payments based on your inputs. Property tax and insurance estimates are as accurate as the values you enter. Your actual payment may also include HOA fees, flood insurance, or other costs not captured here. Always get a Loan Estimate from a licensed lender for exact figures.
What is included in a mortgage payment (PITI)?
A full mortgage payment typically includes: Principal (the portion that reduces your loan balance), Interest (the cost of borrowing), Taxes (property taxes, usually escrowed monthly), and Insurance (homeowner's insurance, also typically escrowed). If your down payment is under 20%, you'll also pay Private Mortgage Insurance (PMI) until you reach 20% equity.
Is a 15-year or 30-year mortgage better?
A 15-year mortgage has a higher monthly payment but significantly lower total interest paid — often 50% less. A 30-year mortgage has a lower payment, giving you more monthly flexibility and cash flow. Most financial advisors recommend the 30-year if the payment difference would be invested, but the 15-year if you prioritize being debt-free and have stable income.
What credit score do I need for a mortgage?
Conventional loans typically require a minimum credit score of 620, though 740+ gets you the best rates. FHA loans accept scores as low as 580 (or 500 with 10% down). VA loans don't have a set minimum but most lenders require 620+. Each 20-point improvement in your score can meaningfully impact your interest rate.
When does PMI go away?
PMI automatically cancels when your loan balance reaches 78% of the original home value (22% equity). You can request cancellation at 80% equity (20% down). You can also eliminate PMI sooner by making extra principal payments or refinancing once you've built sufficient equity.
What is an amortization schedule?
An amortization schedule shows how each mortgage payment is split between principal and interest over the life of your loan. Early in the loan, most of your payment goes toward interest. Over time, the principal portion grows. The schedule above shows your year-by-year breakdown through payoff.
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