Current Mortgage Rates -- Feb. 3, 2021: Rates Up on 30-Year, 15-Year Loans

Thinking about getting a home loan? Here's what happened to mortgage rates on Feb. 3, 2021.

On Feb. 3, 2021, mortgage rates moved up slightly on both the 30-year and 15-year fixed-rate loans. If you're thinking about buying a home, rates are still near record lows. Take a look at average rates today to find out what a mortgage would cost you.

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.806%, up 0.003% from yesterday's average of 2.803%. A loan at today's average rate would cost you $411 per month in principal and interest for each $100,000 you borrow. Over the life of the loan, your total interest costs would add up to $48,037 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.568%, down 0.01% from yesterday's average of 2.578%. At today's average rate, you'd pay $533 per month in principal and interest per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $27,973 per $100,000 borrowed.

If you're thinking about a 20-year loan, it's important to make sure the higher monthly payments are affordable. While this loan provides significant interest savings compared to the 30-year loan alternative, monthly payments are higher since you're paying off your loan with 120 fewer payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.221%, up 0.002% from yesterday's average of 2.219%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $654 and your total interest costs would add up to $17,672.

A 15-year loan comes with even more interest saved compared with the 30-year loan. But, just as with the 20-year loan, you need to be prepared to cover much higher payments compared with the longer loan option.

5/1 ARMs

The average 5/1 ARM rate is 3.352%, up 0.009% from yesterday's average of 3.343%. An ARM is a bad loan choice right now. ARMs sometimes have lower starting interest rates than 30-year loans, so borrowers can decide to take the risk of rates rising later in exchange for a smaller initial payment. You won't get that small starting payment now, and rates are very likely to go up once they begin adjusting at the end of five years since they're near record lows.

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.