Current Mortgage Rates -- July 14, 2021: Rates Fall for Most Loans

Shopping for a home? Check out average mortgage rates for July 14, 2021 to see what it might cost to borrow to buy one.

Average mortgage rates are down for most loans today. When shopping for a home, it pays to keep tabs on trends in mortgage rates because even small differences in interest can have a big impact on total costs.

Check out average mortgage rates for Wednesday, July 14, to see current rates on fixed and adjustable-rate home loans:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.094%, up 0.008% from yesterday's average of 3.086%. If you borrow at today's average rate, your monthly principal and interest payment would be $427 per $100,000 borrowed. Total interest costs would add up to $53,648 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.848%, down 0.014% from yesterday's average of 2.862%. You'd be looking at a principal and interest payment of $547 per $100,000 borrowed at today's average rate. During your entire loan repayment period, you'd pay total interest costs of $31,285 per $100,000 borrowed.

You'll reduce total interest costs with the 20-year loan versus the 30-year loan because you will pay interest for a decade less. Your shorter payoff time will mean higher monthly payments, though.

15-year mortgage rates

The average 15-year mortgage rate today is 2.389%, down 0.008% from yesterday's average of 2.397%. A mortgage loan at today's average interest rate would cost you $662 per $100,000 borrowed. Total interest costs would be $19,084 per $100,000 in mortgage debt over the life of the loan.

By cutting your payment time down considerably, you save a lot of money over time with the 15-year loan. But the high monthly payments resulting from the shortened payoff timeline could put strain on your budget.

5/1 ARMs

The average 5/1 ARM rate is 2.933%, down 0.003% from yesterday's average of 2.936%. ARM stands for adjustable-rate mortgage. That means this rate can adjust over time. It's guaranteed for the first five years only and can change once annually after that. If your rate goes up once it begins adjusting, monthly payments and total costs will end up higher. Consider these risks carefully before you choose this loan type.

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.