Today's Mortgage Rates -- December 1, 2021: Rates Fall for All Loans

If you're buying a home, you should check out today's average mortgage rates for Dec. 1, 2021.

On the first day of December, mortgage rates are down for all loans. Check out today's average rates for fixed and adjustable-rate loans if you are thinking about buying a home and want to know what your loan might cost you.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.318%, down 0.025% from yesterday's average of 3.343%. A loan at today's average rate would come with a monthly principal and interest payment of $439 per $100,000 borrowed. Over the life of the loan, total interest costs would be $58,021 per $100,000 in mortgage debt.

20-year mortgage rates

The average 20-year mortgage rate today is 3.047%, down 0.002% from yesterday's average of 3.049%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $557. The total costs of interest would add up to $33,669 per $100,000 borrowed at today's average rate.

Over time, you'll save money on this loan compared with the 30-year mortgage. You will pay interest for a shorter period of time and your interest rate will be lower. However, each monthly payment has to be higher with a 20-year mortgage than with a 30-year loan because you're making a decade's less number of payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.562%, down 0.033% from yesterday's average of 2.595%.If you borrow at today's average rate, you'd have a monthly principal and interest payment of $670 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $20,548.

This loan saves more over time than the 20-year or 30-year loan options because of its shortened payoff time and low rate. But with only 15 years to pay back your entire mortgage loan, you'll have to make considerably higher monthly payments. While being debt free sooner and saving money over time are big advantages, the high monthly payments can be a burden and may make it harder to qualify for a loan.

5/1 ARMs

The average 5/1 ARM rate is 3.069%, down 0.172% from yesterday's average of 3.241%. ARM stands for adjustable-rate mortgage. That means the rate isn't guaranteed to stay the same for the life of the loan. It's locked in for the first five years and can adjust after that. If the rate adjusts up, the loan becomes more expensive so this is a downside to consider before choosing this loan.

Should I lock my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a specified 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 in case rates climb between now and when you actually close on your mortgage.

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 so competitive. 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 mortgage if rates fall prior to your closing, and while today's rates are still quite 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

To find out what rates are available to you, compare rates from at least three of the best mortgage lenders before locking in.