Today's Mortgage Rates -- October 6, 2021: Rates Down for Most Loans

by Christy Bieber | Published on Oct. 6, 2021

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Buying a home? Find out how mortgage rates are trending on Oct. 6, 2021.

Home buyers should look for the most competitive rate possible when purchasing a home. Check out today's average mortgage rates for Oct. 6, 2021 to see how rates are trending on fixed-rate and adjustable-rate loans. This can help you decide if now is a good time to buy.

Mortgage Type Today's Interest Rate
30-year fixed mortgage 3.201%
20-year fixed mortgage 2.919%
15-year fixed mortgage 2.406%
5/1 ARM 2.856%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.201%, down 0.005% from yesterday's average of 3.206%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $433 per $100,000 in mortgage debt. You'd be looking at total interest costs of $55,708 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.919%, up 0.017% from yesterday's average of 2.902%. A mortgage loan at today's average interest rate would cost you $551 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $32,132 per $100,000 borrowed.

When comparing this loan to the 30-year loan, you'll see higher monthly payments but lower total costs over time. That happens because you are paying interest at a reduced rate, and because you won't pay interest for as long -- but you are making fewer payments so each individual one must be higher.

15-year mortgage rates

The average 15-year mortgage rate today is 2.406%, down 0.015% from yesterday's average of 2.421%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $662 per $100,000 borrowed. Over the life of the loan, your total interest costs would add up to $19,227 per $100,000 borrowed.

You'll save even more money on the 15-year mortgage than the 30-year or 20-year due to the low rate and short payoff time. But you will end up with much higher monthly payments since you must pay your loan in half the time compared with the 30-year loan. If you can comfortably afford the monthly payments, you may decide it would be worth it to become debt free sooner.

5/1 ARMs

The average 5/1 ARM rate is 2.856%, down 0.245% from yesterday's average of 3.101%. An ARM is an adjustable-rate mortgage. Because this rate could adjust -- and may go up -- total mortgage costs and monthly payments are both unpredictable. If you don't want to take the risk of rates rising, you may want to steer clear of this loan and choose a fixed-rate option instead.

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.

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