Today's Mortgage Rates -- December 27, 2021: Rates Up for the 30-Year Loan

As December draws to an end, check out today's average mortgage rates to see how they're trending.

As December comes closer to an end and a New Year approaches, it's worth taking a look at how mortgage rates are trending so you can decide whether it is a good time to purchase a property.

Check out today's average mortgage rates for Dec. 27, 2021 to get an idea of whether a home loan might be affordable for you:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.336%, up 0.008% from Friday's average of 3.328%. If you borrow at today's average rate, your monthly principal and interest payment would be $440 per $100,000 borrowed. Total interest costs would add up to $58,378 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 3.104%, down 0.001% from Friday's average of 3.105%. A loan at today's average rate would come with a monthly principal and interest payment of $560 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $34,356 per $100,000 borrowed.

This loan will come with a higher monthly payment than the 30-year loan, despite the fact it has a lower interest rate. The shorter repayment period means each monthly payment must be higher to repay the debt on time. However, the total costs over time are lower thanks to the low rate and short time you pay interest.

15-year mortgage rates

The average 15-year mortgage rate today is 2.529%, down 0.052% from Friday's average of 2.581%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $668. Your total interest costs over the life of the loan would equal $20,268 per $100,000 borrowed.

This loan has a lower rate than the 30-year or 20-year loan but of course the very short payoff time means each monthly payment will be considerably more expensive. Since you are paying interest for a very short time at a low rate, your total costs over the life of the loan are very low.

5/1 ARMs

The average 5/1 ARM rate is 3.070%, down 0.037% from Friday's average of 3.107%. This is an adjustable-rate mortgage, which means that the rate can change over time. It's locked in for the first five years and then moves with a financial index. If the rate adjusts up, then the monthly payments and total loan costs will be higher.

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.