Today's Mortgage Rates -- March 2, 2022: Rates Down for Fixed-Rate Loans

Thinking of buying a home? Here's what to know about average mortgage rates on March 2, 2022.

On March 2, 2022, average mortgage rates were down for fixed rate options. Check out today's average rates below to see how they're trending on fixed and adjustable rate loans as the month of March gets underway.

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

30-year mortgage rates

The average 30-year mortgage rate today is 4.127%, down 0.041% from yesterday's average of 4.168%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $485. Over the life of the loan, your total interest costs would add up to $74,516 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.794%, down 0.057% from yesterday's average of 3.851%. You'd be looking at a principal and interest payment of $595 per $100,000 borrowed at today's average rate. For each $100,000 you borrow at today's average rate, total interest costs would add up to $42,843.

The savings over time with this loan are considerable compared with the 30-year loan. However, each monthly payment is higher. This is the tradeoff when choosing a loan with a shorter payoff time. While you don't pay interest for as long and you pay it at a lower rate, the fact that you make fewer payments means each individual one must be higher.

15-year mortgage rates

The average 15-year mortgage rate today is 3.385%, down 0.027% from yesterday's average of 3.412%. A mortgage loan at today's average interest rate would cost you $709 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $27,665 per $100,000 borrowed.

The tradeoff is even more pronounced when comparing the 15-year loan with the 20-year or 30-year mortgage. You save a lot of money with this option over time, but your monthly payments are much higher so they can affect your budget flexibility during the years you're working on paying down the loan.

5/1 ARMs

The average 5/1 ARM rate is 3.432%, up 0.064% from yesterday's average of 3.368%. This rate is guaranteed for the first five years, but can change once per year after that. Since rates remain low by historical standards, even though they are up from recent record highs, there's a very good chance that this mortgage could become more expensive 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..