Today's Mortgage Rates -- January 31, 2022: Rates Up for Most Loans

As January comes to an end, check out today's average mortgage rates to see if it's a good time to borrow for a home.

On the last day of January, average mortgage rates are up for most loans. If you're considering buying a home soon, check out today's average mortgage rates for Jan. 31, 2022 so you can decide if it's a good time to borrow.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.779%, up 0.007% from Friday's average of 3.772%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $465. Over the life of the loan, your total interest costs would add up to $67,315 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.426%, down 0.005% from Friday's average of 3.431%. A mortgage loan at today's average interest rate would cost you $576 per $100,000 borrowed. Over the life of the loan, total interest costs would be $38,279 per $100,000 in mortgage debt.

Although this is a cheaper loan option over time than a 30-year fixed-rate mortgage, each monthly payment is higher. There's always a tradeoff when choosing your mortgage payment timeline, as loans with shorter repayment periods are more expensive while making payments but cost less in interest over the life of the loan.

15-year mortgage rates

The average 15-year mortgage rate today is 2.972%, up 0.014% from Friday's average of 2.958%. If you borrow at today's average rate, your monthly principal and interest payment would be $689 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $24,062.

A 15-year mortgage will save you a lot of money over time because total interest costs are very low. But unless you can afford the high monthly payments resulting from shortening your payoff time so much, this loan is not right for you.

5/1 ARMs

The average 5/1 ARM rate is 3.114%, up 0.025% from Friday's average of 3.089%. ARMs are high-risk loans because there's a chance your rates could go up over time. The initial rate is only locked in for five years and it will move with a financial index after that. If you don't want to take a chance of your loan becoming more expensive, this isn't a good option for you.

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 still pretty competitive, historically speaking. 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.