Today's Mortgage Rates -- September 10, 2021: Rates Fall for Most Loans

On Sept. 10, 2021, here's how average mortgage rates are trending.

Mortgage rates are determined by many factors including market conditions as well as an individual borrower's financial credentials. If you are thinking of purchasing a home, check out today's average mortgage rates to get an idea of what a typical borrower would pay for a home loan.

Here are the average mortgage rates for Friday, Sept. 10:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.095%, up 0.003% from yesterday's average of 3.092%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $427 per $100,000 in mortgage debt. Your total interest costs over the life of the loan would equal $53,628 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.755%, down 0.016% from yesterday's average of 2.771%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $542. Over the life of the loan, total interest costs would be $30,179 per $100,000 in mortgage debt.

This loan is cheaper over time than the 30-year loan, as you can see. However, you must make higher payments each month due to the fact that you aren't making as many of them. You need to consider the pros and cons of a loan with a shorter repayment timeline to decide if a 20-year loan is right for you.

15-year mortgage rates

The average 15-year mortgage rate today is 2.346%, down 0.015% from yesterday's average of 2.361%. At today's average rate, the monthly principal and interest payment would add up to $660 per $100,000 in mortgage debt. Over the life of the loan, you'd pay total interest costs of $18,722 per $100,000 borrowed.

The low interest rate and short repayment timeline make this loan much cheaper over time than either the 20-year or 30-year mortgage. Unfortunately, each monthly payment is much higher since you are slashing the number of payments you make. Unless these payments are affordable for you, you may want to opt for a loan with a longer payoff.

5/1 ARMs

The average 5/1 ARM rate is 2.760%, down 0.269% from yesterday's average of 3.049%. Unlike with the other fixed-rate loans, you don't keep this rate for the life of the loan. Your rate is tied to a financial index and can begin adjusting after the first five years. Be aware there is a risk your rate could rise, making payments more expensive and increasing total borrowing costs.

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.