by Maurie Backman | April 22, 2021
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This is what mortgage rates look like today. Are you ready to apply?
Today's mortgage rates are lower than they were yesterday for fixed-rate products, though the 5/1 ARM rose just a notch. Here's what they look like on April 22, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.158%|
|20-year fixed mortgage||2.928%|
|15-year fixed mortgage||2.430%|
The average 30-year mortgage rate today is 3.158%, down 0.011% from yesterday. At today's rate, you'll pay principal and interest of $430.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.
The average 20-year mortgage rate today is 2.928%, down 0.026% from yesterday. At today's rate, you'll pay principal and interest of $551.00 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 $22,584.00 in interest over the course of your repayment period for every $100,000 you borrow.
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The average 15-year mortgage rate today is 2.430%, down 0.002% from yesterday. At today's rate, you'll pay principal and interest of $663.00 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 $35,445.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.996%, up 0.006% from yesterday. With a 5/1 ARM, you lock in the same rate for five years, but from there, your rate will adjust once annually. Now it could increase, but it could also go down. Right now, you'll snag a modest discount on a 5/1 ARM compared to a 30-year fixed loan, but given that there's limited savings to be reaped when you compare the two rates, you may want to stick to a 30-year mortgage that guarantees you the same rate throughout your repayment period.
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 quite 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 pretty low, we don't know if rates will go up or down over the next few months. As such, it pays to:
Mortgage rates have been dropping lately, so it could be a good time to apply. This especially holds true if you're a strong borrowing candidate -- meaning, you have a high credit score and a low debt-to-income ratio. If you're ready to take out a mortgage, get offers from a few different lenders. That way, you'll have a chance to compare your choices and see which gives you the most savings.
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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