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Mortgage rates on Monday Nov. 23 have dropped again on all loan types. Homebuyers continue to have the opportunity to lock in a loan at an unprecedented low rate by historical standards.
Here's what you need to know about today's mortgage rates.
| Mortgage Type | Today's Interest Rate |
|---|---|
| 30-year fixed mortgage | 2.814% |
| 20-year fixed mortgage | 2.660% |
| 15-year fixed mortgage | 2.349% |
| 5/1 ARM | 3.311% |
30-year mortgage rates
The average 30-year mortgage rate today is 2.814%, down 0.016% from Friday's average of 2.830%. A loan at today's average rate would cost you $412 per month in principal and interest for each $100,000 you borrow. Your total interest costs over the life of the loan would equal $48,190 per $100,000 borrowed.
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 2.660%, down 0.015% from Friday's average of 2.675%. At today's average rate, you'd pay $538 per month in principal and interest per $100,000 borrowed. Total interest costs would add up to $29,056 per $100,000 borrowed over the life of the loan.
A 20-year loan has a lower average interest rate than a 30-year loan, but it still has a higher monthly payment since you cut off a decade of time you'd otherwise have to make payments on your loan. Since you're paying interest for a decade less, you will save substantially on total interest over the life of the loan compared with the 30-year alternative.
15-year mortgage rates
The average 15-year mortgage rate today is 2.349%, down 0.004% from Friday's average of 2.353%. If you borrow at today's average rate, your monthly principal and interest payment would be $660 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $18,747 per $100,000 borrowed.
You're shortening your repayment timeline even more with this loan, which means your monthly payment is even higher on a 15-year than a 20-year or 30-year loan even though the average interest rate is lower. Of course, you benefit from more total interest savings over the life of the loan.
5/1 ARMs
The average 5/1 ARM rate is 3.311%, down 0.065% from Friday's average of 3.376%. ARMs allow you to lock in your rate only for an initial period of time -- in this case, for five years. Your rate can adjust up or down after that. Since rates are at record lows right now, there's a good chance rates will adjust upward. With the starting interest rate already higher than the average rate on a 30-year fixed-rate loan, an ARM isn't a good choice 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.
