Current Mortgage Rates -- May 7, 2021: Rates Down for Most Loans

How did mortgage rates change on May 7? Find out here.

On May 7, 2021, mortgage rates fell for most loans except the 15-year fixed rate loan. The rate you pay and the amount you borrow will determine how expensive your home loan is, both each month and over time.

Check out today's average mortgage rates to see the typical interest costs a well-qualified borrower would be charged.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.130%. That's down 0.01% from yesterday's average of 3.140%. A loan at today's average rate would cost you $429 per month in principal and interest for each $100,000 you borrow. During your entire loan repayment period, you'd pay total interest costs of $154,313 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.927%, down 0.029% from yesterday's average of 2.956%. At today's average rate, the monthly principal and interest payment would add up to $551 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $32,228 per $100,000 borrowed.

Deciding what loan term is best for you can be complicated. If you choose a 20-year mortgage instead of a 30-year mortgage, you will save money over time. However, this comes at a cost of higher monthly payments, which can affect your ability to do other things with your money.

15-year mortgage rates

The average 15-year mortgage rate today is 2.422%, up 0.007% from yesterday's average of 2.415%. At today's average rate, the monthly principal and interest payment would add up to $663 per $100,000 in mortgage debt. Over the life of the loan, you'd pay total interest costs of $19,362 per $100,000 borrowed.

This loan option would save you even more money over the life of the loan, but the monthly payments would be even higher. Consider what this means for your budget and other financial goals when deciding what loan repayment timeline makes the most sense.

5/1 ARMs

The average 5/1 ARM rate is 2.799%, down 0.005% from yesterday's average of 2.804%. This rate is below the average on a 30-year mortgage, which might make it seem like the best deal. However, you need to consider the risk you're taking on since the interest rate is guaranteed only for the first five years. Since your rate can adjust, your payments might go up over time so be aware of this big downside of adjustable rate loans.

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:

1. LOCK if closing in 7 days
2. LOCK if closing in 15 days
3. LOCK if closing in 30 days
4. FLOAT if closing in 45 days
5. 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..