Today's Mortgage Rates -- July 15, 2021: 30- and 20-Year Rates Tick Upward

Here's what today's rates look like. Should you apply for a mortgage?

Mortgage rates changed a bit from yesterday, with the 30- and 20-loan climbing. Here's what they look like on July 15, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.096%, up 0.002% from yesterday. At today's rate, you'll pay principal and interest of $427.00 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 2.881%, up 0.033% from yesterday. At today's rate, you'll pay principal and interest of $549.00 for every $100,000 you borrow. Though your monthly payment will go up by $122.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $21,982.00 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 2.389%, unchanged from yesterday. At today's rate, you'll pay principal and interest of $662.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $235.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $34,573.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 2.865%, down 0.068% from yesterday. If you take out a 5/1 ARM today, you'll score a lower interest rate than what you'll get with a 30-year fixed loan. But that rate is only guaranteed for five years, after which it could climb, depending on market conditions. If you can afford a higher monthly payment, it could make more sense to lock in a 20-year loan, since its rate is comparable to the 5/1 ARM today and is also guaranteed to stay in place throughout your repayment period.

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 very attractive, 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 loan if rates fall before you close on your mortgage. While today's rates are pretty 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

If you're ready to apply for a mortgage, reach out to different lenders to see what rates they have available. Keep in mind that the stronger your credit score, the more likely you'll be to qualify for a lower-cost mortgage. If your credit score needs work, it could pay to spend a few months boosting it before applying for a home loan. Mortgage rates are unlikely to climb substantially anytime soon, and raising your credit score could result in serious long-term savings.