Today's Mortgage Rates -- January 12, 2021: Rates Come Up
by Maurie Backman | Updated July 19, 2021 - First published on Jan. 12, 2021
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Mortgage rates have risen since yesterday but remain competitive nonetheless.
Mortgage rates rose for fixed loans. This is what they look like today:
| Mortgage Type | Today's Interest Rate |
|---|---|
| 30-year fixed mortgage | 2.812% |
| 20-year fixed mortgage | 2.573% |
| 15-year fixed mortgage | 2.220% |
| 5/1 ARM | 3.301% |
Data source: The Ascent's national mortgage interest rate tracking.
30-year mortgage rates
The average 30-year mortgage rate today is 2.812%, up 0.027% 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 2.573%, up 0.022% 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 2.220%, up 0.006% 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 3.301%, down 0.018% from yesterday. A 5/1 ARM will let you lock in your initial interest rate for five years, but from there, it can rise or fall with market conditions. A 5/1 ARM makes sense when the interest rate you get to start with is lower than what you'll get with a fixed-rate loan, but since that's not the case today, you're better off with a 30-year mortgage.
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 quite 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, reach out to different lenders to see what rates you're eligible for and what closing costs you'll pay to finalize your loan. Keep in mind that while one lender may offer a lower interest rate, another may be able to keep its fees lower. Of course, the offers you get will hinge on your credit score, income, and existing level of debt, so it pays to shop around and see what lenders come back with.
A historic opportunity to potentially save thousands on your mortgage
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
The Ascent's in-house mortgages expert recommends this company to find a low rate - and in fact he used them himself to refi (twice!). Click here to learn more and see your rate. While it doesn't influence our opinions of products, we do receive compensation from partners whose offers appear here. We're on your side, always. See The Ascent's full advertiser disclosure here.
About the Author
Maurie Backman is a personal finance writer who covers everything from savings to retirement to healthcare. Her articles have appeared broadly on major outlets such as CNBC, MSN, and Yahoo.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
