Current Mortgage Rates -- January 13, 2021: Rates Up for Fixed-Rate Loan Options

Mortgage rates rose for fixed-rate loans on Jan. 13. Is it a good time for you to lock in your rate?

As we move closer to the middle of the month, mortgage rates are up slightly for most loans on Jan. 13, 2021. If you're considering applying for a loan to buy a home, here's what you need to know about average mortgage rates today.

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.844%, up 0.032% from yesterday's average of 2.812%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $413 per $100,000 borrowed. Property taxes and insurance would cost extra. Total interest costs would add up to $48,765 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.611%, up 0.038% from yesterday's average of 2.573%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $535. Over the life of the loan, your total interest costs would add up to $28,478 per $100,000 borrowed.

The 30-year average rate is a bit higher than the 20-year average rate, but you'll notice that monthly payments are lower on the loan with the longer term. When you have 10 extra years to pay off your loan, you don't have to pay as much each month. But of course your total interest costs are higher with the 30-year option since you'll be paying interest for an extra decade.

15-year mortgage rates

The average 15-year mortgage rate today is 2.266%, up 0.046% from yesterday's average of 2.220%. You'd be looking at a principal and interest payment of $656 per $100,000 borrowed at today's average rate. The total costs of interest would add up to $18,049 per $100,000 borrowed.

A 15-year loan has a much lower interest rate than either the 30-year or 20-year loans. But this isn't enough to prevent monthly payments from being much higher on the 15-year loan due to the fact your repayment timeline is much shorter. Since you are paying off your loan so fast, though, you'll definitely save a lot on interest, as you can see.

5/1 ARMs

The average 5/1 ARM rate is 3.132%, down 0.169% from yesterday's average of 3.301%. When an ARM has a lower starting interest rate than a 30-year fixed-rate loan, it can sometimes make sense to take out an adjustable-rate mortgage to save on payments initially. This is especially true if you plan to refinance your loan or sell your home before the possibility of rates rising. But since that's not the case right now, there's no reason to gamble on what rates will do in the future -- especially since they'll almost assuredly go up.

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.