Current Mortgage Rates -- September 7, 2021: Some Rates Up, Others Down

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Mortgage rates are a mixed bag compared with yesterday. Is now the right time to apply for a new mortgage?

Average mortgage rates are up and down today, depending on which mortgage type you're seeking. Check out average mortgage rates for Tuesday, Sept. 7 to see what you might pay to borrow for a home:

30-year fixed mortgage 3.084%
20-year fixed mortgage 2.850%
15-year fixed mortgage 2.342%
5/1 ARM 2.961%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.084%, up 0.005% from yesterday's average of 3.079. A mortgage loan at today's average interest rate would cost you $426 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $53,413 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.850%, up 0.045% from Monday's average of 2.805%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $547. Total interest costs would add up to $31,380 per $100,000 borrowed over the life of the loan.

You'll pay $121 more per month with the 20-year loan compared to the 30-year loan, but you'll save a whopping $22,033 in interest by cutting 10 years off your payoff time.

15-year mortgage rates

The average 15-year mortgage rate today is ​​2.342%, down 0.004% from yesterday's average of 2.338%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $659 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $18,671 per $100,000 borrowed.

You'll save even more over time with the 15-year loan. You'd be paying an extra $233 per month toward your monthly payment compared with the 30-year loan, but over the life of your loan you'll save a total of $34,742 in interest compared with what you'd pay for the 30-year. That's a substantial savings.

5/1 ARMs

The average 5/1 ARM rate is 2.961%, down 0.109% from yesterday's average of 3.070%. ARM stands for adjustable-rate mortgage. With a 5/1 ARM, your rate is guaranteed for just the first five years. Beyond that, it will adjust annually with a financial index. If it goes up, both your monthly payment and total costs will increase. Weigh the risks before locking in this type of loan.

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. You should also inquire about closing costs so that you have a complete picture of your financial responsibility. This will help ensure you truly get the best mortgage available.

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