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Mortgage rates for Monday Nov. 2 have not changed much compared with recent weeks. That's good news, as rates have repeatedly hit record lows and still continue to present an opportunity to borrow at an unprecedented low rate.
Here's what you need to know about today's mortgage rates.
| Mortgage Type | Today's Interest Rate |
|---|---|
| 30-year fixed mortgage | 2.876% |
| 20-year fixed mortgage | 2.730% |
| 15-year fixed mortgage | 2.399% |
| 5/1 ARM | 3.320% |
30-year mortgage rates
The average 30-year mortgage rate today is 2.876%, down .004% from Friday's average rate of 2.880%. A mortgage at today's average rate would come with a monthly principal and interest payment of $415 per $100,000 in mortgage debt and you would pay a total of $49,381 in interest per $100,000 borrowed over the life of the loan.
Check out The Ascent's mortgage calculator to see what your monthly payment might be and how much your loan will ultimately cost. Also learn how much money you'd save by snagging a lower interest rate, making a larger down payment, or choosing a shorter loan term.
20-year mortgage rates
The average 20-year mortgage rate today is 2.730%, up .008% from Friday's average rate of 2.722%. At today's average rate, a 20-year mortgage would have a monthly payment of $541 in principal and interest per $100,000 borrowed. During the duration of your 20-year repayment, total interest paid would add up to $29,883 per $100,000.
You'll notice that while your total interest costs are low, your monthly payment is higher than on a 30-year fixed-rate loan. Both of those things are explained by your shorter repayment timeline. You're paying off your loan in a decade less time, so you must pay more per month. But you will pay considerably less interest since you are paying it for a decade less.
15-year mortgage rates
The average 15-year mortgage rate today is 2.399%, up .008% from Friday's average rate of 2.391%. At today's average rate, your monthly principal and interest costs would total $662 in principal and interest per $100,000 borrowed and you would pay total interest of $19,168 per $100,000 in debt over the life of your loan.
Again, interest costs are lower on a 15-year loan than either a 30-year or 20-year mortgage, but the monthly payment is higher. This is also explained by the shortened repayment timeline, which cuts off another five years of interest payments but gives you five fewer years to pay off your debt.
5/1 ARMs
The average 5/1 ARM rate is 3.320%, down .048% from Friday's average rate of 3.368%. Traditionally, you would generally see a lower starting rate on a 5/1 ARM than a 30-year loan, but your initial rate would only be locked in for five years and could then adjust along with a financial index.
Borrowers were often willing to secure am ARM and take a chance on rates going up, with the plan to refinance or move before that occurred. This sometimes made sense to get that lower starting rate. But since ARMS now have a starting rate above the 30-year fixed-rate alternative, there is no advantage for borrowers. That's especially true as it's highly likely that rates would end up adjusting upward after the initial interest period expires since they are currently at record lows.
Should I lock my mortgage rate now?
A mortgage rate lock guarantees you a certain interest rate for a specified period of time -- usually 30 days, though you may be able to secure your rate for up to 60 days. You'll generally pay a fee to lock in your mortgage rate, but that way, you're protected in case rates climb between now and when you actually close on your mortgage.
If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today's rates -- especially since they're so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, and while today's rates are still quite low, we don't know if rates will go up or down over the next few months. As such, it pays to:
- LOCK if closing in 7 days
- LOCK if closing in 15 days
- LOCK if closing in 30 days
- FLOAT if closing in 45 days
- FLOAT if closing in 60 days
Before locking in, you should get rate quotes from at least three of the best mortgage lenders to ensure you're getting a loan at the most competitive possible rate.
