Today's Mortgage Rates -- April 20, 2021: Rates Drop for Fixed Loans

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This is what mortgage rates look like today. Are you ready to submit a home loan application?

Today's mortgage rates are lower than they were yesterday for fixed-rate products, though the 5/1 ARM rose slightly. Here's what they look like on April 20, 2021:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.180%
20-year fixed mortgage 2.972%
15-year fixed mortgage 2.440%
5/1 ARM 3.023%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.180%, down 0.016% from yesterday. At today's rate, you'll pay principal and interest of $431.00 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 2.972%, down 0.005% from yesterday. At today's rate, you'll pay principal and interest of $553.00 for every $100,000 you borrow. Though your monthly payment will go up by $122.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $22,480.00 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 2.440%, down 0.011% from yesterday. At today's rate, you'll pay principal and interest of $664.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $233.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $35,814.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.023%, up 0.05% from yesterday. With a 5/1 ARM, you lock in the same rate for five years, but beyond that period, your rate has the potential to climb. However, it could also go down over time. There's no way to know, so you'll need to be comfortable with that risk if you're going to get an adjustable-rate mortgage. Of course, you'll be rewarded for taking on that risk in the form of a lower interest rate, at least compared to the 30-year fixed loan.

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 pretty 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

Today's mortgage rates are fairly competitive, and you can increase your chances of snagging a great deal on a home loan if you apply with a high credit score -- ideally, one in the mid-700s or above -- as well as a low debt-to-income ratio. That said, be sure to solicit several offers in your quest for a home loan. If you shop around with several mortgage lenders, you'll have a chance to compare your rate options and closing costs, which should ultimately help you walk away with the best possible deal.

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