Today's Mortgage Rates -- April 16, 2021: Fixed Loans Come Down

Here's what mortgage rates look like right now. Are you ready to apply for a home loan?

Today's fixed mortgage rates are lower than they were yesterday. Here's what they look like on April 16, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.214%, down 0.017% from yesterday. At today's rate, you'll pay principal and interest of $433.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.

20-year mortgage rates

The average 20-year mortgage rate today is 2.989%, down 0.011% from yesterday. At today's rate, you'll pay principal and interest of $554.00 for every $100,000 you borrow. Though your monthly payment will go up by $121.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,045.00 in interest over the course of your repayment period for every $100,000 you borrow.

15-year mortgage rates

The average 15-year mortgage rate today is 2.455%, down 0.018% from yesterday. At today's rate, you'll pay principal and interest of $665.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $232.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $36,321.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.035%, up 0.142% from yesterday. With a 5/1 ARM, you lock in the same rate for five years, but from there your rate can go up or down annually. While you will get a discount by signing a 5/1 ARM instead of a 30-year fixed loan right now, you'll also run the risk of higher monthly payments over time if your rate adjusts upward. If you can manage a higher monthly payment now, you'll get a better deal on your interest rate with a 15-year or 20-year loan, and either rate will be guaranteed for the duration of your mortgage.

Should I lock in my mortgage rate now?

A mortgage rate lock guarantees you a specific interest rate for a certain 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 if rates climb between now and when you close on your home loan.

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 competitive, historically speaking. 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 loan if rates fall before you close on your mortgage, and while today's rates are still fairly 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

Mortgage rates may be higher right now than they were at the start of the year, but they're still very competitive. And if you have a high credit score and a low debt-to-income ratio, you'll be even more likely to qualify for a great deal on a mortgage.

If you're ready to apply for a home loan, shop around with different mortgage lenders. You never know when one lender might present a much more attractive deal than another, so having offers to compare is important -- especially since you may end up repaying your mortgage for the next 30 years of your life.