Today's Mortgage Rates -- October 4, 2021: Rates Down for 30-Year Loan

Did mortgage rates go up or down on Oct. 4, 2021?

As October kicks off, average mortgage rates are mixed, with some trending up and others down. Here's what today's average mortgage rates look like on Oct. 4, 2021 so you can see how much you might end up paying for a home loan if you apply for one soon:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.209%, down 0.002% from Friday's average of 3.211%. A mortgage loan at today's average interest rate would cost you $433 per $100,000 borrowed. Over the life of the loan, total interest costs would be $55,865 per $100,000 in mortgage debt.

20-year mortgage rates

The average 20-year mortgage rate today is 2.891%, up 0.014% from Friday's average of 2.877%. At today's average rate, the monthly principal and interest payment would add up to $549 per $100,000 in mortgage debt. You'd be looking at total interest costs of $31,798 per $100,000 in mortgage debt over the life of the loan.

The loan repayment term affects interest rate, total payment costs, and monthly payments. A 20-year loan has a lower interest rate and lower total costs than the 30-year loan because of its shortened payoff term. But with so few payments to make, each monthly payment must be higher.

15-year mortgage rates

The average 15-year mortgage rate today is 2.426%, unchanged from Friday's average. A loan at today's average rate would come with a monthly principal and interest payment of $663 per $100,000 borrowed. Total interest costs would add up to $19,396 per $100,000 borrowed over the life of the loan.

With an even shorter payoff time, the 15-year loan cuts interest costs further compared with the 20-year loan and also reduces total borrowing costs. However, paying off a mortgage in such a short period makes each monthly payment considerably higher, which could make this loan option unaffordable for many borrowers.

5/1 ARMs

The average 5/1 ARM rate is 3.146%, up 0.003% from Friday's average of 3.143%. ARM stands for adjustable-rate mortgage. After five years, this rate could change -- unlike with a fixed-rate loan. If your rate goes up, and there's a good chance it will, both your monthly payments and total interest costs could rise.

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, 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.