Current Mortgage Rates -- October 2, 2020: The 30-Year Stays Low

Early October is showing little change for mortgage rates -- and that's a good thing for borrowers. Here's what they look like right now.

Mortgage rates are staying quite competitive, with both the 30- and 20-year loan coming in at under 3% and the 15-year loan still under 2.5%. Here's what today's rates look like:

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.908%, down 0.005% from yesterday. At today's rate, you’ll pay principal and interest of $416.44 for every $100,000 you borrow. That doesn't include other expenses like property taxes and homeowners insurance premiums.

Check out The Ascent's mortgage calculator to see what your monthly payment might be and how much your loan will ultimately cost. Also learn how much money you'd save by snagging a lower interest rate, making a larger down payment, or choosing a shorter loan term.

20-year mortgage rates

The average 20-year mortgage rate today is 2.780%, down 0.018% from yesterday. At today's rate, you’ll pay principal and interest of $543.85 for every $100,000 you borrow. Though your monthly payment will go up by $127.41 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $19,397.76 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 2.404%, down 0.024% from yesterday. At today's rate, you’ll pay principal and interest of $662.09 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $245.65 higher per $100,000 in mortgage principal. Your interest savings, however, will total $30,744.18 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.616%, up 0.025% from yesterday. With a 5/1 ARM, you lock in an initial interest rate for five years, after which your rate will adjust once annually -- either upward or downward, depending on market conditions. A 5/1 ARM makes sense when you can snag a discount on your interest rate compared to the 30-year loan, but since that's not the case today, a 5/1 ARM doesn't currently pay.

Should I lock 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 in case rates climb between now and when you actually 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 still quite low. 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

If you're thinking of locking in a mortgage today, first shop around with different lenders to see what offers you're eligible for. And as you comparison-shop, pay attention to closing costs as well. Each lender charges its own fees and you don't want to end up overpaying in an attempt to score a low interest rate.