Today's Mortgage Rates -- March 25, 2021: Rates Are Mixed

Here's today's mortgage rates update. Is it the right time for you to apply for a home loan?

Some of today's mortgage rates are higher than yesterday's, while some have dropped. Here's what rates look like on March 25, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.321%, down 0.001% from yesterday. At today's rate, you'll pay principal and interest of $439.00 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 3.018%, down 0.053% from yesterday. At today's rate, you'll pay principal and interest of $556.00 for every $100,000 you borrow. Though your monthly payment will go up by $117.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $24,748.00 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 2.594%, up 0.006% from yesterday. At today's rate, you'll pay principal and interest of $671.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $232.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $37,337.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.066%, down 0.032% from yesterday. With a 5/1 ARM, you lock in the same interest rate for five years, but from there, it can climb. That said, it can also go down, depending on market conditions. There's risk involved in getting an adjustable-rate mortgage, but there's also savings potential to be reaped. Be sure to weigh the pros and cons if you're thinking of getting an ARM. If you can swing a 15-year mortgage, you may find that it's a better choice, because that way, you'll get a lower interest rate without running the risk of your rate rising over time.

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 still fairly low. 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, and while today's rates are still pretty competitive despite a recent uptick, 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

Though mortgage rates are no longer sitting near historic lows, they're still pretty competitive. And if you have a high credit score and a low debt-to-income ratio, you'll be even more likely to score an attractive rate on your mortgage. If you're eager to get a home loan, reach out to different mortgage lenders and gather offers. Comparing your options will help you land the best deal -- and help make your home a lot more affordable to pay off.