This is what mortgage rates look like today. Are you ready to apply for a home loan?
Today's mortgage rates are a bit higher than they were yesterday. Here's what they look like:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.167%|
|20-year fixed mortgage||2.827%|
|15-year fixed mortgage||2.447%|
30-year mortgage rates
The average 30-year mortgage rate today is 3.167%, up 0.015% from yesterday. At today's rate, you'll pay principal and interest of $430.72 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 2.827%, up 0.014% from yesterday. At today's rate, you'll pay principal and interest of $546.23 for every $100,000 you borrow. Though your monthly payment will go up by $115.51 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,964.63 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 2.447%, up 0.008% from yesterday. At today's rate, you'll pay principal and interest of $664.34 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $233.62 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $35,476.33 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.930%, up 0.065% from yesterday. With a 5/1 ARM, you lock in your initial interest rate for five years, but beyond that point, your rate can adjust once a year -- either upward or downward, depending on market conditions. Based on today's rates, you'll save money on your mortgage for at least five years with a 5/1 ARM compared to a 30-year loan, but make sure you understand the risk you're taking -- that your rate could eventually climb, making your monthly payment a lot higher.
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 pretty 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 competitive, 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 higher today than where they were a month ago, they're still pretty low on a historical basis. And if you have a strong credit score -- one in the mid-700s or better -- and a low debt-to-income ratio, you're more likely to snag a good deal on a home loan. If you're ready to apply for a mortgage, be sure to gather offers from a few different lenders. You may find that one lender offers a lower interest rate or closing costs than another, which gives you an opportunity to reap major savings.
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