by Maurie Backman | May 14, 2021
The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Here's what today's mortgage rates look like. Are you ready to apply for a home loan?
Today's mortgage rates are higher than where they sat yesterday. Here's what they look like on May 14, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.131%|
|20-year fixed mortgage||2.966%|
|15-year fixed mortgage||2.397%|
Get free access to the select products we use to help us conquer our money goals. These fully-vetted picks could be the solution to help increase your credit score, to invest more profitably, to build an emergency fund, and much more.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
The average 30-year mortgage rate today is 3.131%, up 0.020% from yesterday. At today's rate, you'll pay principal and interest of $429.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.
The average 20-year mortgage rate today is 2.966%, up 0.030% from yesterday. At today's rate, you'll pay principal and interest of $553.00 for every $100,000 you borrow. Though your monthly payment will go up by $124.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $21,680.00 in interest over the course of your repayment period for every $100,000 you borrow.
The average 15-year mortgage rate today is 2.397%, up 0.009% from yesterday. At today's rate, you'll pay principal and interest of $662.00 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 $35,174.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 2.819%, up 0.045% from yesterday. A 5/1 ARM will let you keep your initial rate for five years, but from there, it can fluctuate -- either upward or downward. As you can see, you'll snag a lower rate on a mortgage today with a 5/1 ARM than you will with a 30-year or 20-year fixed loan. But make sure you understand the risks involved in getting an adjustable-rate mortgage before moving forward.
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 quite competitive, 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:
If you're ready to apply for a mortgage, be sure to shop around with different mortgage lenders. Each lender establishes its own rate, so comparing offers could help you land a great deal. That said, don't forget to look at closing costs when evaluating your offers. Those fees will eat into your savings, so they need to play into your decision to accept one loan over another.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
The Ascent's in-house mortgages expert recommends this company to find a low rate - and in fact he used them himself to refi (twice!). Click here to learn more and see your rate. While it doesn't influence our opinions of products, we do receive compensation from partners whose offers appear here. We're on your side, always. See The Ascent's full advertiser disclosure here.
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.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.