Current Mortgage Rates -- June 7, 2021: 30-Year Loans Tick Down While Most Rates Rise

On June 7, 2021, average mortgage rates were up for most loans, but the 30-year mortgage broke with the trend. Learn more here.

Interest rates for individual borrowers are determined based on their credit score and other financial credentials. But, it still pays to monitor trends in average mortgage rates to see what you can expect to pay for your home loan if you're a typical borrower.

Here's what average mortgage rates look like on Monday, June 7:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.159%, down 0.002% from Friday's average of 3.161%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $430. Your total interest costs over the life of the loan would equal $54,882 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.938%, up 0.025% from Friday's average of 2.913%. At today's average rate, the monthly principal and interest payment would add up to $551 per $100,000 in mortgage debt. For each $100,000 you borrow at today's average rate, total interest costs would add up to $32,360.

When you reduce your payment time by 10 years compared with the 30-year loan, this results in a big increase in your monthly payment amount. However, since you pay interest for a decade less time, you'll save a lot of money over the life of the loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.413%, up 0.011% from Friday's average of 2.402%. A mortgage loan at today's average interest rate would cost you $663 per $100,000 borrowed. You'd be looking at total interest costs of $19,286 per $100,000 in mortgage debt over the life of the loan.

Changing to a 15-year loan exacerbates the trends seen with the 20-year loan. Each monthly payment is much higher because of the very short payoff time. But you are cutting the time you pay interest in half compared with the 30-year loan. That's going to save you a lot of money over time.

5/1 ARMs

The average 5/1 ARM rate is 3.001%, up 0.103% from Friday's average of 2.898%. This rate is only locked in for the first five years and can adjust annually after that. Since rates are still near record lows, it very well could rise and cause monthly payments and total borrowing costs to increase. Consider this risk when deciding whether an ARM is right for you.

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.