Today's Mortgage Rates -- August 31, 2021: Fixed Loans Drop
by Maurie Backman | Published on Aug. 31, 2021
Should you apply for a mortgage now? Check out today's rates to find out.
Mortgage rates are lower today for fixed-rate products. Here's what rates look like on Aug. 31, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.083%|
|20-year fixed mortgage||2.742%|
|15-year fixed mortgage||2.327%|
30-year mortgage rates
The average 30-year mortgage rate today is 3.083%, down 0.007% from yesterday. At today's rate, you'll pay principal and interest of $426.00 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 2.742%, down 0.026% from yesterday. At today's rate, you'll pay principal and interest of $541.00 for every $100,000 you borrow. Though your monthly payment will go up by $115.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,459.00 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 2.327%, down 0.008% from yesterday. At today's rate, you'll pay principal and interest of $659.00 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 $34,843.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 3.214%, up 0.164% from yesterday. The interest rate you get with a 5/1 ARM will be subject to change after five years. Now at that point, your rate could go down, but it could also climb. Since you can lock in a fixed-rate loan at a lower interest rate today, a 5/1 ARM makes little sense.
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 very attractive, 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. 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:
- 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
If you're ready to get a mortgage, reach out to different lenders to see what rates they offer you. And don't forget to compare closing costs, too, which are the fees you'll pay to finalize your loan. The more offers you get, the easier it'll be to assess your choices and pinpoint the best deal.
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