Today's Mortgage Rates -- January 5, 2022: Rates Creep Higher

Mortgage rates change over time and affect the cost to buy a home. Check out today's average rates to see where they currently stand.

On Jan. 5, 2022, average mortgage rates are up a bit for all loans. The rate you're offered on a home loan affects your monthly payments as well as the total cost of buying your property. Check out today's average mortgage rates to see what you might pay for a fixed or adjustable-rate loan if you're a typical home buyer.

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.412%, up 0.024% from yesterday's average of 3.388%. A loan at today's average rate would cost you $444 per month in principal and interest for each $100,000 you borrow. Over the life of the loan, your total interest costs would add up to $59,893 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.125%, up 0.02% from yesterday's average of 3.105%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $561 per $100,000 borrowed. For each $100,000 you borrow at today's average rate, total interest costs would add up to $34,610.

Because of the shorter repayment time, this loan is less expensive over time than the 30-year loan since you aren't paying interest for as long. The lower interest rate also helps reduce costs. However, when you make fewer payments, each must be larger in order for debt to be repaid on schedule.

15-year mortgage rates

The average 15-year mortgage rate today is 2.556%, up 0.019% from yesterday's average of 2.537%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $669. During your entire loan repayment period, you'd pay total interest costs of $20,497 per $100,000 borrowed.

This loan is the cheapest over time due to the very short payoff period, but the most expensive each month. If you're worried it could put a strain on your budget or prevent you from accomplishing other financial goals, it may not be the mortgage for you.

5/1 ARMs

The average 5/1 ARM rate is 3.256%, up 0.036% from yesterday's average of 3.220%. This mortgage is risky because it's different from the other fixed-rate loans mentioned above. It's an adjustable-rate mortgage and the rate can change after five years. If it goes up, which it very likely could, then you'd be faced with higher monthly payments and higher costs over time.

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.