Current Mortgage Rates -- October 7, 2021: All Fixed Rates Drop
by Maurie Backman | Published on Oct. 7, 2021
Here's what mortgage rates are averaging today. Should you apply now?
Mortgage rates are mostly lower today compared to yesterday, with only the 5/1 ARM rising. Here's what they look like on Oct. 7, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.200%|
|20-year fixed mortgage||2.892%|
|15-year fixed mortgage||2.398%|
30-year mortgage rates
The average 30-year mortgage rate today is 3.200%, down 0.001% from yesterday. At today's rate, you'll pay principal and interest of $433.00 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 2.892%, down 0.027% from yesterday. At today's rate, you'll pay principal and interest of $549.00 for every $100,000 you borrow. Though your monthly payment will go up by $116.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,957.00 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 0.008% 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 $229.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $36,589.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 3.062%, up 0.206% from yesterday. The interest rate you start out with on a 5/1 ARM will adjust once a year once your initial five-year period is over. And so today's rate could climb over time, making your mortgage payments more expensive. You may want to lock in a 30-year loan at a slightly higher rate for the guarantee of being able to keep that rate throughout your repayment period. Or, if you can swing a higher monthly payment, you'll lock in a lower rate with a 15- or 20-year loan.
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, contact a few different lenders to see what rates and closing costs they're willing to offer you. It may be that one lender offers a more competitive rate, but higher fees to finalize your loan. Keep the big picture in mind when making your choice.
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