by Christy Bieber | April 14, 2021
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How are average mortgage rates trending today? Find out here.
On April 14, 2021, average mortgage rates fell for most loans. Your mortgage interest rate determines the cost of borrowing to buy a home, so it's a good idea to keep tabs on how rates are trending if you're in the market. Check out today's average mortgage rates:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.246%|
|20-year fixed mortgage||3.004%|
|15-year fixed mortgage||2.490%|
The average 30-year mortgage rate today is 3.246%, down 0.012% from yesterday's average of 3.258%. If you borrow at today's average rate, your monthly principal and interest payment would be $435 per $100,000 borrowed. Over the life of the loan, you'd pay total interest costs of $56,595 per $100,000 borrowed.
The average 20-year mortgage rate today is 3.004%, up 0.027% from yesterday's average of 2.977%. A mortgage loan at today's average interest rate would cost you $555 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $33,151 per $100,000 borrowed.
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Your interest rate and loan payoff time both determine how much your monthly payments and total borrowing costs add up to. The 20-year loan has a lower rate than the 30-year but the payoff timeline is shorter. You'll have higher monthly payments because of that, but you will pay less interest over time.
The average 15-year mortgage rate today is 2.490%, down 0.012% from yesterday's average of 2.502%. At today's average rate, the monthly principal and interest payment would add up to $666 per $100,000 in mortgage debt. You'd be looking at total interest costs of $19,937 per $100,000 in mortgage debt over the life of the loan.
With the shortened repayment timeline, the 15-year loan will cost you less over time than either the 20-year or 30-year loan. Your monthly payment will be higher, though, because you will have so much less time to pay your loan in full.
The average 5/1 ARM rate is 2.868%, down 0.133% from yesterday's average of 3.001%. You are guaranteed this rate only for the first five years with a 5/1 adjustable-rate mortgage. Although it starts out lower than the 30-year loan, you are taking a big risk with this loan that rates and payments could rise over time. A fixed-rate loan could be a better option to avoid this risk.
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 still pretty 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 on a historical basis, 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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