Here's what mortgage rates look like today. Should you apply for a home loan?
Today's mortgage rates are mixed compared to yesterday. Here's what they look like on April 29, 2021:
|Today's Interest Rate
|30-year fixed mortgage
|20-year fixed mortgage
|15-year fixed mortgage
30-year mortgage rates
The average 30-year mortgage rate today is 3.145%, up 0.002% from yesterday. At today's rate, you'll pay principal and interest of $429.00 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 2.976%, up 0.012% 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 $124.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $21,773.00 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 2.396%, unchanged from yesterday. At today's rate, you'll pay principal and interest of $662.00 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 $35,411.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.886%, down 0.019% from yesterday. With a 5/1 ARM, you lock in the same rate for five years only, and from there, your rate has the potential to climb. However, it's also possible that your loan's interest rate will decrease after five years, depending on market conditions. Clearly, there's risk involved in signing an adjustable-rate mortgage, but on the plus side, you'll reap savings in the form of a lower interest rate compared to the 30-year 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 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 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 aren't as low as they were at the start of the year, but they're still very attractive. 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 offer on a mortgage. That said, don't just agree to the first offer you get. Rather, shop around with different lenders so you can compare your choices and see which offer makes the most sense for you.
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