Current Mortgage Rates -- October 28, 2021: Most Rates Rise

Should you apply for a mortgage? Knowing how rates are trending will help you decide.

Mortgage rates are mixed today. While the 30-year loan came down slightly, remaining rates rose. Here's what rates look like on Oct. 28, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.323%, down 0.001% from yesterday. At today's rate, you'll pay principal and interest of $439.00 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 2.992%, up 0.022% from yesterday. At today's rate, you'll pay principal and interest of $554.00 for every $100,000 you borrow. Though your monthly payment will go up by $115.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $25,181.00 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 2.551%, up 0.005% from yesterday. At today's rate, you'll pay principal and interest of $669.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $230.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $37,643.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.049%, up 0.116% from yesterday. With a 5/1 ARM, your initial rate is only good for five years. Beyond that point, that rate can rise or fall, and it's the former scenario that could wreak havoc on your budget. If you're buying a starter home, a 5/1 ARM could be a good bet. But for a home you plan to stay in for decades, a fixed-rate loan will give you the stability of predictable monthly mortgage payments.

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 very 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, reach out to different lenders to see what rates they're willing to give you. Lenders take different factors into consideration when giving out rates, like your credit score and level of existing debt. In addition to rate shopping, ask about closing costs. It could be that one lender offers a lower interest rate on a mortgage but will hit you with hefty fees to finalize that loan. Get all of the information so you can make an informed decision.