Current Mortgage Rates -- January 12, 2022: Rates Up for Fixed-Rate Loans

Buying a home soon? Here's what you need to know about today's average mortgage rates.

On Jan, 12, 2022, average mortgage rates are up for fixed-rate loans. Check out today's average rates for fixed-rate and adjustable-rate mortgages to get an idea of what monthly payments and total interest costs for different loan options might look like:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.584%, up 0.037% from yesterday's average of 3.547%. You'd be looking at a principal and interest payment of $454 per $100,000 borrowed at today's average rate. During your entire loan repayment period, you'd pay total interest costs of $63,349 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.321%, up 0.013% from yesterday's average of 3.308%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $571 per $100,000 in mortgage debt. The total costs of interest would add up to $36,993 per $100,000 borrowed at today's average rate.

Over time, you pay less for this loan than for the 30-year loan. If you reduce the time you pay interest by a decade and lower your interest rate, it makes sense your total borrowing costs will be lower. Making so many fewer payments does have consequences, though, as each payment is much higher with the 20-year loan than the 30-year loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.730%, up 0.069% from yesterday's average of 2.661%. At today's average rate, you'd pay $678 per month in principal and interest per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $21,981.

This loan has a very short payoff period, which results in much lower total costs than the 20-year or 30-year loan. But it also means higher monthly payments, which could become unaffordable. Before you choose this loan, be sure your budget will stretch to accommodate the higher payments.

5/1 ARMs

The average 5/1 ARM rate is 3.147%, down 0.035% from yesterday's average of 3.182%. ARM stands for adjustable-rate mortgage, which means the rate is locked in just for five years and then can begin adjusting. If the rate adjusts up after five years, both monthly payments and total loan costs will increase.

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. 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.