by Maurie Backman | April 15, 2021
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Here's what mortgage rates look like right now. Are you ready to apply for a home loan?
Today's mortgage rates are mostly lower than they were yesterday. Here's what they look like on April 15, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.231%|
|20-year fixed mortgage||3.000%|
|15-year fixed mortgage||2.473%|
The average 30-year mortgage rate today is 3.231%, down 0.015% from yesterday. At today's rate, you'll pay principal and interest of $434.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.
The average 20-year mortgage rate today is 3.000%, down 0.004% from yesterday. At today's rate, you'll pay principal and interest of $555.00 for every $100,000 you borrow. Though your monthly payment will go up by $121.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,137.00 in interest over the course of your repayment period for every $100,000 you borrow.
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The average 15-year mortgage rate today is 2.473%, down 0.017% from yesterday. At today's rate, you'll pay principal and interest of $665.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $231.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $36,455.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.893%, up 0.025% from yesterday. With a 5/1 ARM, you lock in the same rate for five years, after which that rate gets to adjust once annually. That adjustment could work in your favor and send your rate downward, or your rate could climb -- it'll depend on market conditions you can't predict right now. Based on today's rates, a 5/1 ARM will leave you with lower monthly payments than you'll get with a 30-year fixed loan -- but only for five years, so be aware of that before you make your decision.
A mortgage rate lock guarantees you a specific interest rate for a certain period of time -- usually 30 days, but 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 if rates climb between now and when you close on your home loan.
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 still competitive, historically speaking. 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 loan if rates fall before you close on your mortgage, and while today's rates are still fairly low, we don't know if rates will go up or down over the next few months. As such, it pays to:
Mortgage rates may be higher right now than they were at the start of 2021, but they're still quite competitive. And if you have a high credit score -- one in the mid-700s or above -- and a low debt-to-income ratio, you'll be even more likely to qualify for a great rate on a mortgage.
If you're ready to apply for a home loan, shop around with different mortgage lenders. Each lender establishes its own interest rate and closing costs, so it's important to compare your offers and figure out where you can get the best deal.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
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