Today's Mortgage Rates -- February 4, 2021: Most Rates Rise

by Maurie Backman | Updated July 19, 2021 - First published on Feb. 4, 2021

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Mortgage rates mostly rose today but are still low on a whole. Should you apply now?

Most mortgage rates rose today but remain competitive. This is what they look like now:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 2.814%
20-year fixed mortgage 2.571%
15-year fixed mortgage 2.217%
5/1 ARM 3.364%

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.814%, up 0.008% from yesterday. At today's rate, you'll pay principal and interest of $411.32 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.

20-year mortgage rates

The average 20-year mortgage rate today is 2.571%, up 0.003% from yesterday. At today's rate, you'll pay principal and interest of $533.22 for every $100,000 you borrow. Though your monthly payment will go up by $121.90 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $20,101.72 in interest over the course of your repayment period for every $100,000 you borrow.

15-year mortgage rates

The average 15-year mortgage rate today is 2.217%, down 0.004% from yesterday. At today's rate, you'll pay principal and interest of $653.69 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $242.37 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $30,411.16 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.364%, up 0.012% from yesterday. A 5/1 ARM makes sense when you can snag a lower interest rate on it than what you'll get with a fixed loan. In that scenario, you could always look to refinance after five years if you're worried about your rate climbing but want to enjoy some initial savings. But since the 5/1 ARM is more expensive than the 30-year fixed loan today, you're better off passing on it.

Should I lock in my mortgage rate now?

A mortgage rate lock guarantees you a specific interest rate for a certain 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 if rates climb between now and when you close on your home loan.

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 still very low. 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 loan if rates fall before you close on your mortgage, and while today's rates are extremely competitive, 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

If you're ready to apply for a mortgage, it pays to gather offers from several lenders and see what they come back with. You may find, for example, that one lender's closing costs are $1,000 cheaper than another's. That's because lenders have leeway in setting those fees, and so if you shop around, you could end up spending a lot less to finalize your mortgage. And of course you never know when one lender might match another's offer, so doing some research is always a good bet.

The Ascent's Best Mortgage Lender of 2022

Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible.

That is where Better Mortgage comes in.

You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders).

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