by Christy Bieber | Published on Sept. 13, 2021
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Buying a home? Find out what you might pay for a mortgage.
On Sept. 13, 2021, average mortgage rates are down for the 30-year and 15-year fixed loans. Although your specific rate is determined based on your financial situation, check out today's average rates to see what a typical borrower would pay for a home loan:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.092%|
|20-year fixed mortgage||2.764%|
|15-year fixed mortgage||2.340%|
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The average 30-year mortgage rate today is 3.092%, down 0.003% from Friday's average of 3.095%. You'd be looking at a principal and interest payment of $427 per $100,000 borrowed at today's average rate. Over the life of the loan, your total interest costs would add up to $53,570 per $100,000 borrowed.
The average 20-year mortgage rate today is 2.764%, up 0.009% from Friday's average of 2.755%. A loan at today's average rate would come with a monthly principal and interest payment of $543 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $30,286.
This loan is less expensive over time than the 30-year mortgage, but more expensive each month. This results from the shorter payoff time. When you reduce the number of payments you make, each one must be higher, but there's less total interest owed over time.
The average 15-year mortgage rate today is 2.340%, down 0.006% from Friday's average of 2.346%. At today's average rate, you'd pay $659 per month in principal and interest per $100,000 borrowed. You'd be looking at total interest costs of $18,671 per $100,000 in mortgage debt over the life of the loan.
If you don't mind higher monthly payments and you want to pay the least possible interest over time, the 15-year mortgage is a good choice. But be aware of the opportunity cost, as tying up so much of your money in monthly mortgage payments could affect other goals.
The average 5/1 ARM rate today is 2.775%, up 0.015% from Friday's average of 2.760%. This loan is an adjustable-rate mortgage (ARM), which means the rate can begin adjusting annually after the first five years. Rates remain near historic lows now, so this loan could very well become more expensive over time if rates rise.
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:
To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
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