Current Mortgage Rates -- August 27, 2021: Rates Up for the 30-Year Loan

by Christy Bieber | Published on Aug. 27, 2021

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Large, modern-style home with Today's Mortgage Rates graphic.

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Is now a good time to apply for a mortgage? Check out how rates trended today.

On Friday, Aug. 27 average mortgage rates are mixed, with some trending up and others down. Both your total repayment costs and your monthly payments are impacted by the rate you are offered.

Check out today's average mortgage rates to get an idea of what you might pay for a home loan:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.087%
20-year fixed mortgage 2.782%
15-year fixed mortgage 2.329%
5/1 ARM 2.958%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.087%, up 0.007% from yesterday's average of 3.080%. 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 add up to $53,472 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.782%, down 0.04% from yesterday's average of 2.822%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $544. You'd be looking at total interest costs of $30,500 per $100,000 in mortgage debt over the life of the loan.

Interest costs less over time with this loan because you pay interest for a decade less compared with a 30-year mortgage. However, you are making many fewer payments, so each monthly payment must be higher than with the 30-year loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.329%, down 0.006% from yesterday's average of 2.335%. A mortgage loan at today's average interest rate would cost you $659 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $18,579.

If you don't mind higher monthly payments, this loan saves you considerably over time compared with the other mortgage loan options. But you need to be prepared for much higher monthly costs during the time you're paying back your loan.

5/1 ARMs

The average 5/1 ARM rate is 2.958%, up 0.146% from yesterday's average of 2.812%. After five years, this rate could adjust. It will move along with a financial index it is tied to. There's a good chance your rate could end up going up, which would mean your mortgage ends up costing more over time.

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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