Today's Mortgage Rates -- June 8, 2021: Most Fixed Rates Rise
by Maurie Backman | Updated July 19, 2021 - First published on June 8, 2021
This is what mortgage rates are averaging today. Are you ready to sign up for a home loan?
Mortgage rates are mostly higher today for fixed-rate products. Here's what they look like on June 8, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.158%|
|20-year fixed mortgage||2.942%|
|15-year fixed mortgage||2.418%|
Data source: The Ascent's national mortgage interest rate tracking.
30-year mortgage rates
The average 30-year mortgage rate today is 3.158%, down 0.001% from yesterday. At today's rate, you'll pay principal and interest of $430.00 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 2.942%, up 0.004% from yesterday. At today's rate, you'll pay principal and interest of $552.00 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 $22,440.00 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 2.418%, up 0.005% from yesterday. At today's rate, you'll pay principal and interest of $663.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $233.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $35,445.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.979%, down 0.022% from yesterday. With a 5/1 ARM, you lock in your initial interest rate for five years only, and beyond that point, it will adjust once a year. Now your rate could drop over time, but it could also climb. There's much more financial security to be gained when you sign a fixed-rate mortgage, and if you can swing the higher payments that come with a 15- or 20-year term, you'll snag a lower interest rate right now.
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 home loan, contact a bunch of different mortgage lenders to see what rates they offer you. Keep in mind that mortgage rates aren't universal -- each lender establishes its own. The better your credit and the less debt you have, the more likely you'll be to snag some great offers, but be sure to compare the quotes you get so you walk away with the best home loan.
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About the Author
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.