Current Mortgage Rates -- April 7, 2021: Rates Tick Down

by Christy Bieber | Updated July 19, 2021 - First published on April 7, 2021

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Hand typing on a calculator next to small model home with Today's Mortgage Rates graphic.

Image source: Getty Images

What happened with average mortgage rates on April 7, 2021? Find out here.

Home buyers should pay attention to the movement of mortgage rates as the interest rate they receive will affect their loan cost. Average mortgage rates fell slightly for all loans on April 7.

Check out today's average rates to find out what borrowing could cost you when you buy a home:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.305%
20-year fixed mortgage 2.990%
15-year fixed mortgage 2.559%
5/1 ARM 2.963%

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 3.305%, down 0.012% from yesterday's average of 3.317%. At today's average rate, you'd pay $438 per month in principal and interest per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $57,763 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.990%, down 0.009% from yesterday's average of 2.999%. A mortgage loan at today's average interest rate would cost you $554 per $100,000 borrowed. Your total interest costs over the life of the loan would equal $32,983 per $100,000 borrowed.

As you can see, you'll pay less interest over time with this loan than with the 30-year since you pay interest for a decade less time and the rate is a bit lower. Your monthly payments are higher, though, since you're making so many fewer payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.559%, down 0.011% from yesterday's average of 2.570%. You'd be looking at a principal and interest payment of $689 per $100,000 borrowed at today's average rate.The total costs of interest would add up to $23,985 per $100,000 borrowed at today's average rate.

The 15-year offers lower total interest than either the 20-year or 30-year loan. But you'll pay considerably more each month. This, again, is explained by the shortened payoff timeline.

5/1 ARMs

The average 5/1 ARM rate is 2.963%, down 0.001% from yesterday's average of 2.964%. An ARM's starting rate is guaranteed only for a limited time -- in this case, five years. So while your rate starts off lower than the 30-year loan, there's a chance it could go up over time. This would increase your payment. You'll be taking a big risk of your mortgage costing more by choosing the ARM rather than the fixed-rate loan.

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 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

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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