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Mortgage rates on Wednesday Nov. 11 are largely unchanged from recent days and weeks. The average interest rate on fixed-rate loan options remain near record lows, while adjustable-rate mortgages continue to offer higher rates that make them a poor choice for most borrowers.
Here's what you need to know about today's average rates.
| Mortgage Type | Today's Interest Rate |
|---|---|
| 30-year fixed mortgage | 2.865% |
| 20-year fixed mortgage | 2.750% |
| 15-year fixed mortgage | 2.396% |
| 5/1 ARM | 3.557% |
30-year mortgage rates
The average 30-year mortgage rate today is 2.865%, down .004% compared with yesterday's average rate of 2.869%. At today's average rate, the combined monthly payment for principal and interest would equal $414 per $100,000 borrowed. This does not include property taxes and insurance. Over the life of the loan, you would pay $49,169 in total interest for each $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 2.750%, down .003% compared with yesterday's average rate of 2.753%. The monthly principal and interest payment would add up to $542 per $100,000 in mortgage debt if you secure a 20-year loan at today's average rate. Over the life of the loan, total interest costs would equal $30,120 per $100,000 borrowed.
A 20-year loan, even at a lower interest rate, has a higher monthly payment than a 30-year loan. Since you'll be making payments for 10 fewer years, each payment obviously must be higher in order for you to pay off the loan on time. However, saving a decade of interest is why your total interest costs are so much lower with this loan than with a 30-year fixed-rate mortgage.
15-year mortgage rates
The average 15-year mortgage rate today is 2.396%, unchanged from yesterday. If you take out a 15-year mortgage at today's average rate, monthly principal and interest costs would equal $662 per $100,000 in debt and total interest costs would add up to $19,143 per $100,000 borrowed.
With a 15-year fixed-rate loan, you're taking an additional five years off the repayment time. That's why, even with a much lower rate than longer-term loans, monthly payments are much higher. Again, total interest costs are far lower though since you are now paying off your loan in half the time compared with a 30-year fixed-rate loan.
5/1 ARMs
The average 5/1 ARM rate is 3.557%, up .074% compared with yesterday's average rate of 3.483%. Borrowers generally should not consider an adjustable-rate mortgage (ARM) at this time. Since a 30-year loan has a lower average starting rate, there is no advantage to taking out a loan with rates that could adjust in five years time -- especially as rates will most likely go up when they begin adjusting since they are currently near 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.
