Today's Mortgage Rates -- June 4, 2021: Rates Up for Most Loans

by Christy Bieber | Updated July 19, 2021 - First published on June 4, 2021

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Thinking of buying a home? Find out what's going on with average mortgage rates on June 4, 2021.

Anyone considering the purchase of a home should keep tabs on average mortgage rates to see what they can expect to pay to borrow. While rates are up from recent historic lows, they are still very competitive.

Check out today's average mortgage rates for Friday June 4, 2021 to learn more:

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.161%
20-year fixed mortgage 2.913%
15-year fixed mortgage 2.402%
5/1 ARM 2.898%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.161%, up 0.007% from yesterday's average of 3.154%. A mortgage loan at today's average interest rate would cost you $430 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $54,921 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.913%, up 0.013% from yesterday's average of 2.900%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $550 per $100,000 in mortgage debt. Total interest costs would be $32,061 per $100,000 in mortgage debt over the life of the loan.

Since interest costs over time are lower, the 20-year loan is a cheaper option. But the fact you're making payments for a decade less time doesn't just help you save on interest. It also means each monthly payment must be higher since you are making so few of them.

15-year mortgage rates

The average 15-year mortgage rate today is 2.402%, down 0.01% from yesterday's average of 2.392%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $662 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $19,193 per $100,000 borrowed.

This loan comes with a very short payoff time. That means interest savings over the life of the loan are substantial compared with the 20-year or 30-year options. But monthly payments are much higher while you're paying back your debt.

5/1 ARMs

The average 5/1 ARM rate is 2.898%, up 0.043% from yesterday's average of 2.855%. This is a competitive rate, but it's locked in only for five years. Rates could change after that time, as often as once per year. Since there's a good chance they will adjust higher, you could find yourself facing larger monthly payments and more total borrowing costs over the life of the loan.

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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Mortgage rates are at their highest level in years — and expected to keep rising. It is more important than ever to check your rates with multiple lenders to secure the best rate possible while minimizing fees. Even a small difference in your rate could shave hundreds off your monthly payment.

That is where Better Mortgage comes in.

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