by Maurie Backman | Published on Oct. 19, 2021
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Is it a good time to get a mortgage? Here's what rates look like right now.
Mortgage rates are higher today for fixed loans, though the 5/1 ARM dropped slightly. Here's what rates look like on Oct. 19, 2021:
|Mortgage Type||Today's Interest Rate|
|30-year fixed mortgage||3.267%|
|20-year fixed mortgage||2.934%|
|15-year fixed mortgage||2.513%|
The average 30-year mortgage rate today is 3.267%, up 0.004% from yesterday. At today's rate, you'll pay principal and interest of $436.00 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 2.934%, up 0.009% from yesterday. At today's rate, you'll pay principal and interest of $551.00 for every $100,000 you borrow. Though your monthly payment will go up by $115.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $24,710.00 in interest over the course of your repayment period for every $100,000 you borrow.
The average 15-year mortgage rate today is 2.513%, up 0.010% from yesterday. At today's rate, you'll pay principal and interest of $667.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $231.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $36,860.00 over the life of your repayment period per $100,000 of mortgage debt.
The average 5/1 ARM rate is 3.079%, down 0.018% from yesterday. A 5/1 ARM allows you to lock in the same interest rate for five years only. From there, your rate has the potential to rise or fall with market conditions. There's risk involved in getting an adjustable-rate mortgage, so you'll need to make sure you're prepared for your monthly home loan payments to climb. And if you'd rather not take on that risk, consider getting a fixed mortgage.
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 very attractive, 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 sign a mortgage, reach out to a few different lenders to see what rates they offer you. And also be sure to ask about closing costs, which are the fees you'll be charged to finalize your loan. Each lender sets its own rates and closing costs, so comparing that data will help you identify the best deal.
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.
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