Current Mortgage Rates -- June 28, 2021: Rates Up for Most Fixed-Rate Loans

Are mortgage rates trending up or down on June 28? Home buyers need to know.

Mortgage rates are up for some loans and down for others today. It's a good idea for people shopping for a house to keep tabs on average interest rates in order to get an idea of what a home loan might cost them.

Here are today's average mortgage rates for Monday, June 28:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.203%, down 0.001% from Friday's average of 3.204%. At today's average rate, you'd pay $433 per month in principal and interest per $100,000 borrowed. Total interest costs would add up to $55,747 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.965%, up 0.01% from Friday's average of 2.955%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $553 per $100,000 in mortgage debt. You'd be looking at total interest costs of $32,683 per $100,000 in mortgage debt over the life of the loan.

A 20-year mortgage will be cheaper over time but will cost more each month. When you make fewer payments, each one must be higher. But you won't owe the lender interest for as long, so total costs are lower.

15-year mortgage rates

The average 15-year mortgage rate today is 2.497%, up 0.001% from Friday's average of 2.496%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $667 per $100,000 borrowed. Total interest costs would be $19,997 per $100,000 in mortgage debt over the life of the loan.

This mortgage substantially reduces the payoff time compared with a 30-year or 20-year loan. This means it costs far less during the life of the loan. But with so few monthly payments to make, each can be very high and could potentially put a strain on your budget.

5/1 ARMs

The average 5/1 ARM rate is 2.919%, down 0.092% from Friday's average of 3.011%. ARM stands for adjustable-rate mortgage. This rate is guaranteed only for the first five years. It could adjust after that time, and there's a good chance rates will move higher. That would lead to monthly payments and total interest costs going up. So while this loan looks like a better deal than the 30-year fixed-rate loan today, home buyers should be aware of the risks.

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.