Current Mortgage Rates -- December 14, 2021: Most Rates Drop, 5/1 ARM Falls Substantially
Ready for a mortgage? Check out what today's rates are averaging.
Mortgage rates are mostly lower today, though the 15-year loan is higher. Here's what rates look like on Dec. 14, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.342%|
|20-year fixed mortgage||3.063%|
|15-year fixed mortgage||2.594%|
30-year mortgage rates
The average 30-year mortgage rate today is 3.342%, down 0.002% from yesterday. At today's rate, you'll pay principal and interest of $440.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.
20-year mortgage rates
The average 20-year mortgage rate today is 3.063%, down 0.006% from yesterday. At today's rate, you'll pay principal and interest of $558.00 for every $100,000 you borrow. Though your monthly payment will go up by $118.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $24,554.00 in interest over the course of your repayment period for every $100,000 you borrow.
15-year mortgage rates
The average 15-year mortgage rate today is 2.594%, up 0.015% from yesterday. At today's rate, you’ll pay principal and interest of $671.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $231.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $37,576.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.742%, down 0.277% from yesterday. With a 5/1 ARM, you're guaranteed the same interest rate for five years, after which your rate can adjust once annually. Right now, the 5/1 ARM is being offered at a much lower rate than the 30-year mortgage, so it may be tempting to sign up for it. But just know that your rate could then climb over time.
Should I lock in my mortgage rate now?
A mortgage rate lock guarantees you a specific interest rate for a certain 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 if rates climb between now and when you close on your home loan.
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 pretty attractive, historically speaking. 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 loan if rates fall before you close on your mortgage. While today's rates are pretty 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
If you're ready to apply for a mortgage, reach out to different lenders rather than accept the first offer you're presented with. Each lender sets its own rates based on factors like your credit score, loan amount, existing debt, and income. Comparing offers is a good way to snag a great deal on a home loan.
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