Current Mortgage Rates -- September 27, 2021: Rates Up Across the Board

Are mortgage rates up or down? Check out today's average rates for Sept. 27, 2021.

As we move into the last week of September, average mortgage rates are up for all loans. If you are thinking about buying a home, take a look at how rates are trending and at how much different loans would cost you. This can help you to decide if now is a good time to apply for a home loan.

Here are average mortgage rates for Sept. 27, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.120%, up 0.01% from Friday's average of 3.110%. A loan at today's average rate would cost you $428 per month in principal and interest for each $100,000 you borrow. Total interest costs would add up to $54,117 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.731%, up 0.008% from Friday's average of 2.723%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $541 per $100,000 in mortgage debt. Over the life of the loan, your total interest costs would add up to $29,895 per $100,000 borrowed.

This loan is definitely a lot less expensive over time than the 30-year loan. You won't pay interest for as long and you will pay interest at a lower rate, so total interest costs are much lower. However, by cutting 10 years off your payment time, you must commit to making higher monthly payments for the duration of your loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.370%, up 0.013% from Friday's average of 2.357%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $661. Total interest costs would be $18,974 per $100,000 in mortgage debt over the life of the loan.

This loan is the least expensive over time of the fixed-rate options, due to its low rate and very short timeline for repayment. But, remember the tradeoff between high monthly payments and short-term loans. This exacerbates that tradeoff compared with the 20-year loan, and many people will find the monthly payments on a 15-year mortgage aren't affordable.

5/1 ARMs

The average 5/1 ARM rate is 3.029%, up 0.062% from Friday's average of 2.967%. You are taking a risk with this loan. That's because your interest rate isn't guaranteed for the life of the loan, just for the first five years. After that, it can adjust once per year -- which means you are at risk of your loan becoming much more expensive both in terms of monthly payments and total borrowing cost.

Should I lock my mortgage rate now?

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:

• 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

To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.