Today's Mortgage Rates -- February 10, 2021: Rates Rise on Most Loans

Are you considering applying for a mortgage? Here are average rates on Feb. 10, 2021.

On Feb. 10, 2021, mortgage rates were up on most loans, although the 15-year trended slightly down. If you are considering applying for a mortgage, these rates are low by historical standards and you still have a great opportunity to lock in your loan at a very low rate.

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.832%, up 0.001% from yesterday's average of 2.831%. A mortgage loan at today's average interest rate would cost you $413 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $48,535 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.606%, up 0.021% from yesterday's average of 2.585%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $535 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $28,420 per $100,000 borrowed.

When you opt for a 20-year loan over a 30-year loan, you make 120 fewer payments. As a result, each payment is higher. But since you pay interest for a decade less time, you will see considerable interest savings over the life of the loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.226%, down 0.008% from yesterday's average of 2.234%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $654. Your total interest costs over the life of the loan would equal $17,714 per $100,000 borrowed.

A 15-year loan cuts the number of payments in half compared with a 30-year mortgage. The result is significantly lower total borrowing costs, but higher monthly payments. Some people would prefer to be debt free sooner even though that means paying more, while others would rather have more flexibility in their budget.

5/1 ARMs

The average 5/1 ARM rate is 3.259%, up 0.124% from yesterday's average of 3.135%. ARMs, or adjustable-rate mortgages, aren't advisable for most borrowers now. There's a good chance rates will go up once rate adjustments begin, since they are so low right now. And the starting rate is already higher than the rate on a 30-year loan, so you should likely choose the fixed-rate option and lock that lower rate in.

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.