Current Mortgage Rates -- January 11, 2021: Rates Rise Slightly on Most Loans

These are the average rates for all standard mortgage loan types for Jan. 11, 2021.

On Jan. 11, 2021, mortgage rates ticked up a bit for most loans. However, if you are considering buying a home, you still have an unprecedented opportunity to secure a home loan at a rate that's near the lowest in recorded history. Here's what you need to know about rates today.

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.785%, up 0.011% from Friday's average of 2.774%. A loan at today's average rate would cost you $410 per month in principal and interest for each $100,000 you borrow. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $47,635 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.551%, up 0.003% from Friday's average of 2.548%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $532 per $100,000 in mortgage debt. Total interest costs would add up to $27,774 per $100,000 borrowed over the life of the loan.

You may be surprised to see the payment is so much higher on the 20-year loan than the 30-year mortgage even though the 20-year loan rate is slightly lower. The reason for this is simple -- you have to repay your entire loan balance in a decade less time. That's also why you'll pay much less total interest over the life of the loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.214%, down 0.002% from Friday's average of 2.216%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $653. Over the life of the loan, you'd pay total interest costs of $17,614 per $100,000 borrowed.

Since you repay a 15-year loan in half the time of a 30-year mortgage and in five fewer years than a 20-year loan, your monthly payment is even higher despite the low interest rate. However, your total interest savings is considerable with a 15-year mortgage due to the very short payoff time.

5/1 ARMs

The average 5/1 ARM rate is 3.481%, down 0.003% from Friday's average of 3.484%. The starting interest rate on the ARM is higher than on the 30-year fixed-rate option. And when your rate begins adjusting in five years, there's a very good chance it will go up since rates are currently near record lows. Because of this, you should avoid an ARM and opt for a 30-year fixed-rate loan instead.

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.