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Mortgage rates on Monday Nov. 9 are down slightly. Rates on a 30-year fixed-rate loan are now coming in well under 3.00% and rates on a 15-year fixed-rate loan average well below 2.50%. These rates are extremely competitive and can make borrowing for a home very affordable.
Here's what you need to know about today's average rates.
| Mortgage Type | Today's Interest Rate |
|---|---|
| 30-year fixed mortgage | 2.864% |
| 20-year fixed mortgage | 2.728% |
| 15-year fixed mortgage | 2.390% |
| 5/1 ARM | 3.410% |
30-year mortgage rates
The average 30-year mortgage rate today is 2.864%, down .008% from Friday's average rate of 2.872%. At today's average interest rate, you would be looking at a monthly principal and interest payment of $414 per $100,000 borrowed, not including taxes and insurance. Over the life of the loan, your total interest costs would add up to $49,150 per $100,000 in mortgage debt.
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 2.728%, down .004% from Friday's average rate of 2.732%. If you qualify to borrow at today's average rate, your monthly principal and interest payments would add up to $541 per $100,000 in mortgage debt and total interest costs would be $29,859 for each $100,000 borrowed over the life of the loan.
Despite the lower average interest rate, your monthly payment is higher due to the shortened repayment timeline on a 20-year loan. However, it is that short repayment timeline that makes total interest costs over the life of the loan so much lower than with a 30-year mortgage.
15-year mortgage rates
The average 15-year mortgage rate today is 2.390%, down .028% from Friday's average rate of 2.418%. At today's average rate, your monthly principal and interest payments would equal $662 per $100,000 borrowed. Over the life of your loan, total interest costs would be $19,092 per $100,000 borrowed.
Like with a 20-year loan, the lower interest rate on a 15-year loan still leaves you paying a higher monthly payment than on the loans with longer repayment terms. However, by making your repayment period even shorter, you further reduce your total interest costs.
5/1 ARMs
The average 5/1 ARM rate is 3.410%, up .054% from Friday's average rate of 3.356%. Adjustable-rate mortgages make sense for borrowers when they offer a starting interest rate below that of a 30-year fixed-rate loan. In exchange for the low rate, borrowers take the risk of their interest costs rising after the initial five-year period. Since the average interest rate on a 5/1 ARM is currently above that of a 30-year fixed-rate loan and the risk of rates going up in the future is high (due to the fact they are currently near record lows), an ARM is not a good loan option right now.
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.
