Today's Mortgage Rates -- December 29, 2021: Rates Up for Most Loans

Did average mortgage rates move up or down on Dec. 29, 2021? Find out here.

On Dec. 29, 2021, average mortgage rates are up for most loans. If you are thinking about becoming a homeowner, knowing average rates could help you see what your loan might cost and could assist you in deciding which loan is right for you.

Check out today's average rates for 30-year, 20-year, and 15-year fixed-rate loans as well as for a 5/1 ARM.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.357%, up 0.005% from yesterday's average of 3.352%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $441. Total interest costs would add up to $58,796 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 3.050%, down 0.097% from yesterday's average of 3.147%. You'd be looking at a principal and interest payment of $557 per $100,000 borrowed at today's average rate. Over the life of the loan, your total interest costs would add up to $33,705 per $100,000 borrowed.

This loan is cheaper than the 30-year loan over time but more expensive than the 15-year loan. However, the monthly payments are lower than with the 15-year loan albeit more expensive than the 30-year. This loan could be a good option if you want to keep monthly payments reasonable but still pay less over time by reducing the interest rate and the amount of time you pay interest.

15-year mortgage rates

The average 15-year mortgage rate today is 2.549%, up 0.009% from yesterday's average of 2.540%. If you borrow at today's average rate, your monthly principal and interest payment would be $669 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $20,438 per $100,000 borrowed.

This is the cheapest loan option over time compared with the 20-year or 30-year loan. That's because your rate is lower and because you pay interest for a short time. Monthly payments are considerably higher due to the short payoff time, though. So consider this downside before deciding what mortgage to get.

5/1 ARMs

The average 5/1 ARM rate is 3.221%, up 0.20% from yesterday's average of 3.021%. This loan is a risky one because the rate is locked in just for the first five years. After that, it can adjust with a financial index and both rates and total costs could go up over time.

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.