Current Mortgage Rates -- April 5, 2021: Rates Down for Most Loans
Thinking about buying a home? Check out today's average mortgage rates.
On April 5, 2021, mortgage rates were down for most loans. Here's what you can expect as far as average mortgage rates if you're shopping for a home loan today:
|Today's Interest Rate
|30-year fixed mortgage
|20-year fixed mortgage
|15-year fixed mortgage
30-year mortgage rates
The average 30-year mortgage rate today is 3.312%, up 0.004% from Friday's average of 3.308%. At today's average rate, the monthly principal and interest payment would add up to $439 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $57,902 per $100,000 borrowed.
20-year mortgage rates
The average 20-year mortgage rate today is 2.983%, down 0.002% from Friday's average of 2.985%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $554. You'd be looking at total interest costs of $32,899 per $100,000 in mortgage debt over the life of the loan.
A 20-year loan has a higher monthly payment than a 30-year loan, but its total interest costs over time are lower. Both factors are explained by the shortened payoff timeline.
15-year mortgage rates
The average 15-year mortgage rate today is 2.566%, down 0.001% from Friday's average of 2.567%. A mortgage loan at today's average interest rate would cost you $670 per $100,000 borrowed. Over the life of the loan, total interest costs would be $20,582 per $100,000 in mortgage debt.
Just as with the 20-year loan, the 15-year comes with a higher monthly payment due to the fact you're making fewer payments. But interest costs are far lower over time because you pay interest for such a short period -- and the rate is also much lower than the 30-year loan.
The average 5/1 ARM rate is 3.068%, down 0.013% from Friday's average of 3.081%. This starting rate is locked in only for the first five years. While you'll start out paying less than with the 30-year fixed-rate loan since it's lower, you take a big risk. Rates could adjust up and your payment could rise. Make sure you're OK with taking this chance if you're considering an ARM.
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, 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 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 still pretty 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
To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.
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