Current Mortgage Rates -- May 11, 2021: Fixed Rates Drop

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This is what mortgage rates look like right now. Are you ready to apply for a home loan?

Today's mortgage rates are lower for fixed-rate products. Here's what they look like on May 11, 2021:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.111%
20-year fixed mortgage 2.919%
15-year fixed mortgage 2.398%
5/1 ARM 2.844%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.111%, down 0.009% from yesterday. At today's rate, you'll pay principal and interest of $427.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.

20-year mortgage rates

The average 20-year mortgage rate today is 2.919%, down 0.009% 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 $123.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $21,786.00 in interest over the course of your repayment period for every $100,000 you borrow.

15-year mortgage rates

The average 15-year mortgage rate today is 2.398%, down 0.007% 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 $235.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $34,706.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 2.844%, up 0.011% from yesterday. With a 5/1 ARM, you only lock in the same interest rate for five years. Beyond then, your rate has the potential to climb -- though it can also drop, depending on market conditions. If you're buying a starter home or a home you don't plan to live in for more than five years, then a 5/1 ARM makes sense. That way, you get to enjoy a lower interest rate on your mortgage and don't run the risk of paying more interest over time.

Should I lock in my mortgage rate now?

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 quite 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:

  • 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

If you're ready to apply for a mortgage, you should know that the more attractive a loan candidate you are, the lower your interest rate is likely to be. To that end, aim to come in with a high credit score, a low debt-to-income ratio, money for a down payment (ideally, 20% of your home's purchase price), and a steady income. You should also apply with a few different mortgage lenders and see what offers they come back to you with. Applying with a given lender does not obligate you to accept its offer, but that way, you can see what deals you're eligible for and choose the best one.

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