Current Mortgage Rates -- February 11, 2021: Rates Come Down

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Mortgage rates are down today. Should you apply for a home loan now?

Today's mortgage rates are lower than they were yesterday. This is what they look like now:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 2.831%
20-year fixed mortgage 2.567%
15-year fixed mortgage 2.216%
5/1 ARM 3.236%

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.831%, down 0.001% from yesterday. At today's rate, you'll pay principal and interest of $412.60 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 2.567%, down 0.039% from yesterday. At today's rate, you'll pay principal and interest of $533.22 for every $100,000 you borrow. Though your monthly payment will go up by $120.62 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $20,561.18 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 2.216%, down 0.010% from yesterday. At today's rate, you'll pay principal and interest of $653.69 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $241.65 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $30,870.62 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.236%, down 0.023% from yesterday. It pays to get a 5/1 ARM when your initial rate on it is lower than what you'll get with a fixed-rate loan. But since there's no discount to be had today with a 5/1 ARM, it makes little sense. Not only will you sign up to pay more, but you'll also run the risk of your rate climbing once your initial five-year period is up.

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 still very low. 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, and while today's rates are really competitive, 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, round up offers from a few different lenders to see what deals you qualify for. You may find that while one lender is able to offer you a lower interest rate on your loan, another charges much lower closing costs to finalize your mortgage. And speaking of closing costs, don't be afraid to try negotiating those downward if there's an offer you'd otherwise like to accept. If you're a strong borrowing candidate, you never know what steps a lender might take to get you to sign a loan.

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