Current Mortgage Rates -- September 24, 2020: The 30-Year Holds Below 3%

Mortgage rates continue to be competitive. Here's what they look like today.

Mortgage rates are largely unchanged from earlier in the week, and still quite competitive. Here's what they're averaging today:

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.950%, up negligibly from earlier in the week. At today's rate, you’ll pay principal and interest of $419.02 for every $100,000 you borrow. That total does not include 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 2.832%, virtually the same as earlier in the week. At today's rate, you'll pay principal and interest of $546.23 for every $100,000 you borrow. Though your monthly payment will go up by $127.21 with a 20-year loan versus a 30-year loan, you'll save $19,753 in interest over the course of your repayment period per $100,000 you borrow.

15-year mortgage rates

The average 15-year mortgage rate today is 2.42%, a tiny but virtually negligible decrease from earlier this week. At today's rate, you’ll pay principal and interest of $663.22 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $244.20 higher per $100,000 you borrow. Your interest savings, however, will total $31,468 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.604%, which is a small jump from earlier this week. With a 5/1 ARM, you lock in the same interest rate for five years, after which it will adjust upward or downward once annually. With a 30-year fixed mortgage, you lock in the same mortgage rate for the entire life of your repayment period. Since the 5/1 ARM's average interest rate is much higher than the average 30-year loan right now, a 30-year fixed mortgage is a better bet.

Should I lock my mortgage rate now?

A mortgage rate lock guarantees you a specific interest rate for a predetermined 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 intend 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 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:

• 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 get a mortgage, don't just accept the first offer you're given. Rather, shop around with different mortgage lenders to see what offers you're eligible for. Remember, too, that the lower your closing costs, the more savings you'll reap, so look at the big picture before locking yourself in.