Current Mortgage Rates -- January 28, 2022: Rates Down for Most Loans

Home buyers should keep tabs on average mortgage rates. Check out how rates are trending today.

On Jan. 28, 2022, average mortgage rates are down for most loans, with the exception of the 30-year fixed-rate mortgage. When you're buying a home, the rate you're offered affects how much your loan will cost. Check out today's average rates to get an idea of what you can expect to pay for your home each month and over time.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.772%, up 0.007% from yesterday's average of 3.765%. A loan at today's average rate would come with a monthly principal and interest payment of $464 per $100,000 borrowed. Total interest costs would add up to $67,171 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 3.431%, down 0.006% from yesterday's average of 3.437%. You'd be looking at a principal and interest payment of $576 per $100,000 borrowed at today's average rate. Over the life of the loan, your total interest costs would add up to $38,341 per $100,000 borrowed.

It's important to consider your loan payoff time carefully. A loan with a shorter payoff period, such as the 20-year loan instead of the 30-year loan, will result in higher monthly payments but lower total costs. Think about whether you'd prefer to pay less over time, even if that does mean that you must make a higher payment each month over the life of the loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.958%, down 0.016% from yesterday's average of 2.974%. A mortgage loan at today's average interest rate would cost you $689 per $100,000 borrowed. Your total interest costs over the life of the loan would equal $23,941 per $100,000 borrowed.

The 15-year loan shortens your payoff time substantially and reduces total loan repayment costs considerably as well. However, because the repayment period is so short you will have to make much higher monthly payments. This can make qualifying for, and affording the loan, more challenging for many buyers.

5/1 ARMs

The average 5/1 ARM rate is 3.089%, down 0.097% from yesterday's average of 3.186%. A 5/1 ARM guarantees your rate just for the first five years. After that, rates can move with a financial index once annually. It's very possible rates will go up over time, leaving you with a loan that costs more. So be sure to consider the risk you're taking with this loan option.

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.