Today's Mortgage Rates -- May 10, 2021: Rates Mixed

What changed in the world of mortgage rates on Monday, May 10?

Mortgage rates are mixed this morning, with some up and others down slightly. If you are thinking about buying a home soon, paying attention to how rates are trending can give you insight into what you might pay to borrow for it.

Check out today's average mortgage rates for May 10, 2021 to find out more about what happened with rates today:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.120%, down 0.01% from Friday's average of 3.130%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $428. You'd be looking at total interest costs of $54,117 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.928%, up 0.001% from Friday's average of 2.927%. At today's average rate, the monthly principal and interest payment would add up to $551 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $32,240 per $100,000 borrowed.

Although the interest savings is substantial on the 20-year loan compared with the 30-year loan, the monthly costs are much higher. When you reduce the time it takes to pay off your mortgage, you must make a larger payment each month, but you save on interest over time.

15-year mortgage rates

The average 15-year mortgage rate today is 2.405%, down 0.017% from Friday's average of 2.422%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $662 per $100,000 in mortgage debt. Over the life of the loan, you'd pay total interest costs of $19,219 per $100,000 borrowed.

Since you shorten your payoff time more with the 15-year mortgage compared with the 20-year, you benefit from even more savings on interest. Of course, the cost of this is that you must make very high monthly payments, which might strain your budget.

5/1 ARMs

The average 5/1 ARM rate is 2.833%, up 0.034% from Friday's average of 2.799%. You'll be guaranteed this rate just for the first five years. After that time, rates can adjust once annually, and there's a good chance they will rise since they are currently near historic lows. Consider whether it makes sense to take on this risk when the 5/1 ARM's starting rate is only a bit lower than the average interest rate on the 30-year fixed-rate 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, historically speaking, 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.