Current Mortgage Rates -- April 9, 2021: Rates Down for Most Loans
by Christy Bieber | Updated July 19, 2021 - First published on April 9, 2021
Check out today's average mortgage rates to see what a home loan could cost you.
Average mortgage rates are down a bit for most loans to close out the week. Most people need to borrow to buy a home. If you're considering purchasing a property, it's helpful to understand how mortgage rates are trending.
Here's what average mortgage rates look like for April 9, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.283%|
|20-year fixed mortgage||2.987%|
|15-year fixed mortgage||2.539%|
30-year mortgage rates
The average 30-year mortgage rate today is 3.283%, down 0.008% from yesterday's average of 3.291%. At today's average rate, you'd pay $437 per month in principal and interest per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $57,327 per $100,000 borrowed.
20-year mortgage rates
The average 20-year mortgage rate today is 2.987%, unchanged from yesterday's average. At today's average rate, the monthly principal and interest payment would add up to $554 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $32,947 per $100,000 borrowed.
You'll notice the interest costs are lower over time with this loan than with the 30-year loan, but each monthly payment is higher. When you make payments for a decade less time, this is the result.
15-year mortgage rates
The average 15-year mortgage rate today is 2.539%, down 0.008% from yesterday's average of 2.547%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $669. The total costs of interest would add up to $20,353 per $100,000 borrowed at today's average rate.
A 15-year mortgage cuts repayment time in half compared with the 30-year loan. Shortening the payoff timeline by so much explains why the interest costs over time are so much lower but the monthly payment is so much higher.
The average 5/1 ARM rate is 2.874%, down 0.06% from yesterday's average of 2.934%. You will have this rate only for the first five years, after which time it can move up or down along with a financial index it is tied to. This is in contrast to a fixed-rate loan, which has a rate that never changes. Since your rate could adjust upward after five years, causing your monthly mortgage payment to increase, ARMs are risky. While the starting rate is currently below the 30-year rate, take this risk into account.
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.
The Ascent's Best Mortgage Lender of 2022
Mortgage rates are at their highest level in years — and expected to keep rising. It is more important than ever to check your rates with multiple lenders to secure the best rate possible while minimizing fees. Even a small difference in your rate could shave hundreds off your monthly payment.
That is where Better Mortgage comes in.
You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders).
About the Author
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.