Today's Mortgage Rates -- Feb. 8, 2021: Rates Are Mixed

What happened to mortgage rates on Feb. 8? Here's what you need to know.

On Monday Feb. 8, 2021, average mortgage rates moved up for some loans and down for others. There are still excellent opportunities for home buyers to secure a loan at a great rate. Here's what you need to know about how rates trended today.

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.826%, up 0.003% from Friday's average of 2.823%. A mortgage loan at today's average interest rate would come with a monthly payment of $412 per $100,000 borrowed. This doesn't include property taxes or insurance. During your entire loan repayment period, you'd pay total interest costs of $48,420 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.612%, up 0.038% from Friday's average of 2.574%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $535 per $100,000 borrowed. You'd be looking at total interest costs of $28,490 per $100,000 in mortgage debt over the life of the loan.

Although you save substantially on interest compared with a 30-year loan, your monthly payments are much higher. It's important to carefully consider this tradeoff before you decide that a 20-year fixed-rate loan is the right choice.

15-year mortgage rates

The average 15-year mortgage rate today is 2.214%, down 0.002% from Friday's average of 2.216%. You'd be looking at a principal and interest payment of $653 per $100,000 borrowed at today's average rate. The total costs of interest would add up to $17,614 per $100,000 borrowed.

A 15-year loan saves you money on total interest costs compared with both a 30-year and 20-year loan. But you will pay much more per month than with either of these other loans due to the very short payoff timeline. Be sure you're prepared for higher payments if you choose a 15-year loan.

5/1 ARMs

The average 5/1 ARM rate is 3.218%, down 0.093% from Friday's average of 3.311%. ARM stands for adjustable-rate mortgage. Since rates are near record lows right now, you can expect that your rate will probably adjust upward. Since you'll already have to pay a higher starting rate than on the 30-year loan, there's no reason to get an ARM right now.

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.