Mortgage rates remain competitive. Should you lock out today?
Mortgage rates remain at incredible levels, with the 30- and 20-year loan well below 3% and the 15-year loan well below 2.5%. Here’s what today’s rates look like:
Start your journey to financial success with a bang
Get free access to the selected products we use to help us meet our financial goals. These fully verified choices could be the solution to help you increase your credit score, invest more profitably, build an emergency fund, and more.
By submitting your email address, you consent to our sending you money advice as well as products and services which we believe may be of interest to you. You can unsubscribe anytime. Please read our Confidentiality declaration and terms and conditions.
30-year mortgage rates
The 30-year average mortgage rate today is 2.887%, down 0.007% from yesterday. At today’s rate, you’ll pay principal and interest of $ 415.80 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.
Discover The Ascent’s mortgage calculator to see what your monthly payment could be and how much your loan will ultimately cost. Also, find out how much money you would save by saving a lower interest rate, making a larger down payment, or choosing a shorter loan term.
20-year mortgage rates
The 20-year average mortgage rate today stands at 2.755%, up 0.001% from yesterday. At today’s rate, you’ll pay principal and interest of $ 542.66 for every $ 100,000 you borrow. Although your monthly payment increases by $ 126.86 with a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 19,450.42 in interest over your repayment period for every $ 100,000 you borrow.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.390%, up 0.017% from yesterday. At today’s rate, you’ll pay principal and interest of $ 661.53 for every $ 100,000 you borrow. Compared to the 30 year loan, your monthly payment will be $ 245.73 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 30,613.63 over the duration of your repayment period per $ 100,000 of mortgage debt.
The average 5/1 ARM rate is 3.398%, down 0.133% from yesterday. With an ARM 5/1, you are only guaranteed your initial interest rate for a period of five years. From then on, your rate could increase once a year as it adjusts. To be fair, your rate may go down as well, but generally speaking, it’s not worth taking the chance if you can’t get a discount on your rate up front. And since the 30-year fixed loan has a much lower interest rate than the 5/1 ARM right now, the former makes more sense.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a specific interest rate for a certain period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You’ll usually pay a fee to lock in your mortgage rate, but that way you’re protected if rates go up by the time your mortgage closes.
If you plan to close your home within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are still very low. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your mortgage if rates drop before you close, and while rates today are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it is beneficial to:
- LOCK if the closure 7 days
- LOCK if the closure 15 days
- LOCK if the closure 30 days
- FLOAT if the closure 45 days
- FLOAT if the closure 60 days
If you’re ready to apply for a mortgage, don’t just take the first offer presented to you. Instead, collect offers from different lenders so that you can compare your choices and make the right choice. Each lender sets their own fees and standards, so your credit rating you might buy a lower rate with one lender than another. Spending time evaluating different offers could save you a lot of money at the close and in the long run.
The Ascent team is partnering with market-leading data provider Optimal Blue to track the seven-day average of daily mortgage rates that actual borrowers are locking in across the country. Learn more about our mortgage rate tracking methodology.