How are mortgage rates trending on June 2, 2021? Find out here.
On June 2, 2021, average mortgage rates are mostly up, with the 20-year down a bit. Check out today's average rates if you are thinking about buying a new home:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.141%|
|20-year fixed mortgage||2.884%|
|15-year fixed mortgage||2.376%|
30-year mortgage rates
The average 30-year mortgage rate today is 3.141%, up 0.015% from yesterday's average of 3.126%. A loan at today's average rate would cost you $429 per month in principal and interest for each $100,000 you borrow. Total interest costs would add up to $54,529 per $100,000 borrowed over the life of the loan.
20-year mortgage rates
The average 20-year mortgage rate today is 2.884%, down 0.017% from yesterday's average of 2.901%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $549 per $100,000 in mortgage debt. Over the life of the loan, your total interest costs would add up to $31,714 per $100,000 borrowed.
When you reduce your payoff time, you raise your monthly payments but lower total costs. That's why the 20-year loan is more expensive each month than the 30-year loan but cheaper over the life of the loan.
15-year mortgage rates
The average 15-year mortgage rate today is 2.376%, up 0.002% from yesterday's average of 2.374%. A mortgage loan at today's average interest rate would cost you $661 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $18,974 per $100,000 borrowed.
The 15-year loan has a shorter payoff time than the 20-year or 30-year. That means monthly payments are higher than on either of those two alternatives. But total costs are lower since you won't pay interest for as long.
The average 5/1 ARM rate is 2.877%, up 0.012% from yesterday's average of 2.865%. This starting rate is competitive and may be attractive since it's below the average starting rate on the 30-year fixed-rate loan. But it is guaranteed only for the first five years and could adjust upwards after that, so be aware of the risk you're taking if you choose this loan option.
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.
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