On October 11, 2021, average mortgage rates are up for fixed rate loans. Whether you are considering a fixed rate or an adjustable rate loan, you can find average mortgage rates here as well as information on the cost of different types of home loans.
6 simple tips to get a 1.75% mortgage rate
Secure access to The Ascent’s free guide on how to get the lowest mortgage rate when buying your new home or refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.
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30-year mortgage rates
The 30-year average mortgage rate today stands at 3.219%, up 0.012% from Friday’s average of 3.207%. You would consider a principal and interest payment of $ 434 per $ 100,000 borrowed at today’s average rate. Over the life of the loan, the total interest charge would be $ 56,062 per $ 100,000 of mortgage debt.
20-year mortgage rates
The 20-year average mortgage rate today stands at 2.922%, up 0.008% from Friday’s average of 2.914%. For every $ 100,000 borrowed at today’s average rate, your total monthly payment of principal and interest would be $ 32,168. You would have a total interest charge of $ 551 per $ 100,000 of mortgage debt over the life of the loan.
Although this loan costs more each month than the 30-year fixed rate mortgage, it is less expensive over time. This is because reducing the number of payments reduces the interest payment time, thus reducing total costs. But that means that each payment must be higher.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.426%, up 0.017% from Friday’s average of 2.409%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $ 663 per $ 100,000 of mortgage debt. Over the life of the loan, you would pay a total interest charge of $ 19,396 for every $ 100,000 borrowed.
The monthly payments are even higher with this loan since you shorten the repayment period even more than with the 20-year loan. However, you will save a lot of money over the life of the loan by paying off your mortgage so quickly.
The average 5/1 ARM rate is 3.200%, down 0.128% from Friday’s average of 3.148%. After five years, that rate might adjust upward, and your loan might become more expensive both monthly and over time. If you don’t want to take the risk of a rate hike once your rate begins to adjust, you may prefer a fixed rate loan option.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You will usually pay a fee to lock in your mortgage rate, but this way you are protected in the event of a rate hike before 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 very competitive. 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 closing 7 days
- LOCK if closing 15 days
- LOCK if closing 30 days
- FLOAT if closing 45 days
- FLOAT if closing 60 days
To find out what rates are available to you, compare the rates of at least three of the top mortgage lenders before you lock in.