Today's Mortgage Rates -- February 5, 2021: Rates Mixed but Mostly Steady

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Mortgage rates are still incredibly competitive. Should you apply today?

Today's mortgage rates are mixed but remain competitive. This is what they look like at present:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 2.823%
20-year fixed mortgage 2.574%
15-year fixed mortgage 2.216%
5/1 ARM 3.311%

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

30-year mortgage rates

The average 30-year mortgage rate today is 2.823%, up 0.009% from yesterday. At today's rate, you'll pay principal and interest of $412.00 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 2.574%, up 0.003% from yesterday. At today's rate, you'll pay principal and interest of $533.00 for every $100,000 you borrow. Though your monthly payment will go up by $121.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $20,305.00 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 2.216%, down 0.001% from yesterday. At today's rate, you'll pay principal and interest of $653.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $241.007 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $30,740.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.311%, up 0.053% from yesterday. A 5/1 ARM makes sense when it lets you start off with a lower interest rate compared to what you'll pay for a fixed-rate loan. But since that's not the case today, you're better off skipping an adjustable-rate mortgage -- especially since your rate could climb over time with an ARM.

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 quite 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, gather offers from different lenders and pay attention to the details involved. Specifically, you'll want to look at the rate you're being offered, the closing costs you're being charged to finalize your loan, and whether you're required to pay points to buy down your rate. Don't forget that some lenders may be willing to negotiate, so if you get an offer that includes a lower rate but higher closing costs, it doesn't hurt to reach out and ask that lender to come down on fees.

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