Today's Mortgage Rates -- September 20, 2021: Rates Increase

Are today's mortgage rates competitive? Find out average mortgage rates on Sept. 20, 2021.

Mortgage rates are up for all loans to start the week. See how today's rates compare to last Friday's so you can get a good idea of what a home loan might cost you and whether rates are trending up or down.

Check out average mortgage rates for Monday, Sept. 20:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.079%, up 0.007% from Friday's average of 3.072%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $426 per $100,000 in mortgage debt. During your entire loan repayment period, you'd pay total interest costs of $53,316 per $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 2.765%, up 0.008% from Friday's average of 2.757%. At today's average rate, you'd pay $543 per month in principal and interest per $100,000 borrowed. The total costs of interest would add up to $30,298 per $100,000 borrowed at today's average rate.

The total interest costs over time are lower with this loan than the 30-year loan, but as you can see the monthly payments are higher. This is true despite the loan having a lower rate. Reducing repayment time by a decade means you'll owe significantly less interest over time but each monthly payment must be much higher.

15-year mortgage rates

The average 15-year mortgage rate today is 2.335%, up 0.005% from Friday's average of 2.330%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $659. You'd be looking at total interest costs of $18,629 per $100,000 in mortgage debt over the life of the loan.

As you can see, this loan is the most expensive each month but the cheapest over time. Paying off your loan so quickly requires significantly higher monthly payments, but you pay interest for a much shorter period, saving you considerably in interest.

5/1 ARMs

The average 5/1 ARM rate is 3.189%, up 0.119% from Friday's average of 3.070%. This rate isn't locked in. It's tied to a financial index and can adjust after five years. It could go up, especially since rates are near record lows still. You may not want to take that chance and should consider a fixed-rate loan 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.