by Maurie Backman | June 11, 2021
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This is what mortgage rates are averaging today. Are you ready to get a home loan?
Mortgage rates are lower today for fixed-rate products. Here's what they look like on June 11, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.138%|
|20-year fixed mortgage||2.907%|
|15-year fixed mortgage||2.406%|
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The average 30-year mortgage rate today is 3.138%, down 0.010% from yesterday. At today's rate, you'll pay principal and interest of $429.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.
The average 20-year mortgage rate today is 2.907%, down 0.030% from yesterday. At today's rate, you'll pay principal and interest of $550.00 for every $100,000 you borrow. Though your monthly payment will go up by $121.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $22,635.00 in interest over the course of your repayment period for every $100,000 you borrow.
The average 15-year mortgage rate today is 2.406%, down 0.008% from yesterday. At today's rate, you'll pay principal and interest of $662.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $233.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $35,411.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 3.035%, up 0.235% from yesterday. A 5/1 ARM will let you lock in the same interest rate for a five-year period only. From there, your rate has the potential to rise -- or fall. Since there's not that much of a discount to be gained with a 5/1 ARM over a 30-year loan right now, you may be better off with the latter, since that way, you'll be guaranteed the same interest rate for three decades. And if you can afford a higher monthly payment, you may want to look at a 15- or 20-year loan, both of which also give you a guaranteed rate throughout your repayment period.
A mortgage rate lock guarantees you a specific interest rate for a certain 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 if rates climb between now and when you close on your home loan.
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 very attractive, 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 loan if rates fall before you close on your mortgage. While today's rates are pretty low, we don't know if rates will go up or down over the next few months. As such, it pays to:
If you're ready to apply for a mortgage, get in touch with a few different mortgage lenders to see what rates they come back with. And also, don't forget to look at closing costs, which are the fees you'll be charged to finalize your loan. High closing costs can eat into your savings, so don't gloss over them when comparing your offers.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
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