Current Mortgage Rates -- February 25, 2022: Rates Continue Climbing

If you're buying a home, here's what you need to know about today's average mortgage rates.

On Feb. 25, 2022, average mortgage rates are up for all loans. All would-be home buyers should pay attention to trends in rates and should explore different loan options to make sure they get the most affordable home loan.

Here are today's average rates for both fixed-rate and adjustable-rate loan options:

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.164%, up 0.011% from yesterday's average of 4.153%. A mortgage loan at today's average interest rate would cost you $434 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $75,291 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.860%, up 0.017% from yesterday's average of 3.843%. During your entire loan repayment period, you'd pay total interest costs of $599 per $100,000 borrowed. You'd be looking at total interest costs of $43,671 per $100,000 in mortgage debt over the life of the loan.

The benefit of this loan, compared with the 30-year loan, is that you will pay a lot less over time due to both the lower interest rate and the fact you don't pay interest for as many years. But the downside is that each monthly payment has to be higher on this loan because you're making payments for a decade fewer. Consider these pros and cons to decide if a loan with a shorter payoff time is a good option.

15-year mortgage rates

The average 15-year mortgage rate today is 3.399%, up 0.031% from yesterday's average of 3.368%. You'd be looking at a principal and interest payment of $710 per $100,000 borrowed at today's average rate. The total costs of interest would add up to $27,788 per $100,000 borrowed at today's average rate.

Just as a 20-year loan has higher monthly payments than a 30-year mortgage, a 15-year loan comes with higher monthly payments than loan options with longer payoff times. But the total interest savings over the life of the loan is substantial, so some buyers may find these higher payments are worth making.

5/1 ARMs

The average 5/1 ARM rate is 3.410%, up 0.048% from yesterday's average of 3.362%. While this rate may seem attractive because it's lower than the 30-year loan, it's important to remember it's locked in for just five years. It could adjust up after that, rendering your monthly costs and total costs higher.

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 still pretty competitive, 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 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.