Current Mortgage Rates -- August 25, 2021: Rates Up for the 30-Year Loan

Is it a good time to get a mortgage? Check out today's average mortgage rates to find out.

On Aug. 25, 2021, mortgage rates are mixed, with some trending up and others down. While homeowners can't always time their home purchase to get rock-bottom mortgage rates, it still pays to keep tabs on whether rates are trending up or down. Here are today's average rates:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.079%, up 0.003% from yesterday's average of 3.076%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $426 per $100,000 in mortgage debt. Total interest costs would be $53,316 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.830%, up 0.035% from yesterday's average of 2.795%. A loan at today's average rate would come with a monthly principal and interest payment of $546 per $100,000 borrowed. Over the life of the loan, total interest costs would be $31,070 per $100,000 in mortgage debt.

This loan saves you money over time compared to the 30-year loan, both because the rate is lower and because you won't pay interest as long. The 20-year loan requires higher monthly payments because you make so many fewer of them.

15-year mortgage rates

The average 15-year mortgage rate today is 2.331%, down 0.006% from yesterday's average of 2.337%. You'd be looking at a principal and interest payment of $659 per $100,000 borrowed at today's average rate. During your entire loan repayment period, you'd pay total interest costs of $18,595 per $100,000 borrowed.

This loan is the cheapest over time, but the most expensive each month. There's always a tradeoff between a short repayment time and higher monthly payments, so you'll need to consider what makes sense for you.

5/1 ARMs

The average 5/1 ARM rate is 2.929%, down 0.058% from yesterday's average of 2.987%. You won't be guaranteed this rate for the life of the loan, though, unlike with a fixed-rate mortgage. It could change after five years and, if it adjusts upward, your total loan costs and monthly payments would both increase.

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.