Current Mortgage Rates -- August 9, 2021: Rates Rise for Most Loans

Buying a home? Here are average mortgage rates for Aug. 9, 2021.

Mortgage rates are up for most loans today, with the exception of the 20-year fixed-rate mortgage. Although each borrower's rate is determined by their credit score, income, and other financial factors, home buyers should still keep tabs on trends in mortgage rates to get an idea what their loan will cost.

Here are today's average mortgage rates for Aug. 9, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.013%, up 0.008% from Friday's average of 3.005%. At today's average rate, you'd pay $422 per month in principal and interest per $100,000 borrowed. Total interest costs would add up to $52,030 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.732%, down 0.011% from Friday's average of 2.743%. A loan at today's average rate would cost you $541 per month in principal and interest for each $100,000 you borrow. Your total interest costs over the life of the loan would equal $29,907 per $100,000 borrowed.

If your goal is to save on interest while keeping monthly payments reasonable, the 20-year loan could be a good option. Interest costs are lower over time than on the 30-year loan, and monthly payments aren't that much higher (especially when compared with the 15-year loan).

15-year mortgage rates

The average 15-year mortgage rate today is 2.271%, up 0.005% from Friday's average of 2.266%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $656. You'd be looking at total interest costs of $18,091 per $100,000 in mortgage debt over the life of the loan.

If you want to maximize interest savings, this loan is the best choice for you. You'll pay the least over time with the 15-year loan. But your monthly payments will be much higher than on the 30-year or 20-year loan options since you are repaying your loan so fast.

5/1 ARMs

The average 5/1 ARM rate is 2.915%, up 0.03% from Friday's average of 2.885%. After five years, this rate could begin adjusting. Since rates are still near record lows right now, there's a good chance the rate will go up. That will raise your monthly payments and make paying your loan more expensive. You may prefer one of the fixed-rate loan options, rather than gambling on an adjustable-rate mortgage.

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.