Current Mortgage Rates -- July 30, 2021: Rates Down on Fixed-Rate Loans

Buying a home? Check out today's average mortgage rates.

As July draws to a close, mortgage rates are down for fixed-rate loans on July 30, 2021. If you are considering buying a home, check out today's average rates for fixed-rate and adjustable-rate mortgages:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.042%, down 0.004% from yesterday's average of 3.046%. At today's average rate, you'd pay $424 per month in principal and interest per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $52,614 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.776%, down 0.011% from yesterday's average of 2.787%. At today's average rate, the monthly principal and interest payment would add up to $543 per $100,000 in mortgage debt. You'd be looking at total interest costs of $30,428 per $100,000 in mortgage debt over the life of the loan.

If you choose a shorter loan payoff term, such as the 20-year mortgage instead of the 30-year mortgage, each monthly payment will be higher because you will not be making as many payments. You will save a lot of money in interest over time, though, so this tradeoff may be worth it.

15-year mortgage rates

The average 15-year mortgage rate today is 2.297%, down 0.022% from yesterday's average of 2.319%. You'd be looking at a principal and interest payment of $657 per $100,000 borrowed at today's average rate. For each $100,000 you borrow at today's average rate, total interest costs would add up to $18,310.

This loan has much higher monthly payments than the 20-year or 30-year loan because of the very short payoff time. But you will own your home free and clear much sooner, and will save a lot in interest over time if you choose the 15-year repayment plan.

5/1 ARMs

The average 5/1 ARM rate is 3.079%, up 0.071% from yesterday's average of 3.008%. You will be guaranteed this rate only for the first five years. It can adjust once per year after that time and there's a good chance it will go higher because rates are still very low right now. If your rate rises, your monthly payment will go up too -- and your loan will get more expensive over time. Be sure to weigh these risks when comparing the 5/1 ARM to the 30-year fixed-rate loan.

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.