That 30 Year Mortgage Interest Rate

That 30 Year Mortgage Interest Rate

 

Seeing on the internet "the average 30 year mortgage rate has dropped the last four weeks reaching 6.17%"  I asked AI what are the costs of that rate.  Here's the reply:

 

The 6.17% rate is a typical market rate as of today, October 31, 2025, and you would be responsible for standard mortgage closing costs, which generally range from 2% to 5% of the total loan amount. These are a separate category of expenses from "discount points." 

 

Discount Points

Lenders advertise specific interest rates, like 6.17%, with an accompanying Annual Percentage Rate (APR) and usually disclose how many discount points, if any, are needed to secure that specific rate. 

• What they are: Discount points are optional upfront fees you pay to the lender at closing in exchange for a permanently lower interest rate.
• Cost: One mortgage point typically costs 1% of your total loan amount (e.g., $3,000 on a $300,000 loan).
• Rate reduction: Each point usually lowers your interest rate by about 0.25 percentage points, though this varies by lender.
• To get a lower rate than 6.17%: If you wanted a rate lower than the average 6.17%, you would pay discount points.

 

When consumers see a headline regarding mortgage rates of course it spurs some interest.  As with everything the small print is the most important.   The interest rate for a mortgage includes many factors and options.  Borrowers should be sure to work with a lender who explains all the options.