30 year loans are slowing down while most rates are rising



On June 7, 2021, average mortgage rates rose on most loans, but a 30-year mortgage broke that trend. Find out more here.

Interest rates for individual borrowers are determined based on their credit rating and other financial data. But it’s still worth tracking trends on average mortgage rates to find out what you can expect to pay on a home loan if you are a typical borrower.

Here’s what the average mortgage rates look like on Monday, June 7:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.159%, which is 0.002% below the average on Friday (3.161%). For every $ 100,000 borrowed at today’s average rate, there is a monthly payment of principal and interest of $ 430. Your total interest expense over the life of the loan is $ 54,882 for every $ 100,000 borrowed.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.938%, up 0.025% above Friday’s average of 2.913%. At today’s average rate, the monthly payment of principal and interest would be $ 551 per $ 100,000 in mortgage debt. For every $ 100,000 that you borrow at today’s average rate, the total interest expense is $ 32,360.

When you shorten your repayment time by 10 years compared to a 30 year loan, it results in a significant increase in the monthly payment amount. However, since you pay ten years less interest, you will save a lot of money over the life of the loan.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.413%, which is 0.011% higher than Friday’s average of 2.402%. A mortgage at today’s average interest rate will cost you $ 663 per 100,000 borrowed. You would look at a total interest expense of $ 19,286 on a $ 100,000 mortgage debt over the life of the loan.

The switch to a 15-year loan exacerbates the trends seen with a 20-year loan. Each monthly payment is much higher due to the very short repayment period. But you cut your interest payment time in half compared to a 30-year loan. This will save you a lot of money over time.

5/1 ARM

Average 5/1 speed ARM is 3.001%, which is 0.103% more than on Friday an average of 2.898%. This rate is only fixed for the first five years and can be adjusted annually thereafter. With rates still close to record lows, they could well rise, pushing up monthly payments and overall borrowing costs. Consider this risk when deciding if ARM is right for you.

Should I lock my mortgage rate now?

Locking a mortgage rate guarantees you a specific interest rate for a specific period of time – usually 30 days, but you can keep your rate for up to 60 days. You usually pay a commission to lock in your mortgage rate, but this way you are protected in case rates rise between now and when you actually close your mortgage.

If you are planning to close your home in the next 30 days, then it will be beneficial to lock in your mortgage rate based on today’s rates – especially since they are so competitive. But if there are more than 30 days left before your close, you can opt for a floating rate lock instead of what would normally be a higher fee, but which could save you money in the long run. A floating rate lock allows you to secure a lower mortgage rate if rates fall before the close, and while today’s rates are still pretty low, we don’t know if rates will go up or down over the next few months. Thus, it is beneficial:

  • LOCK if closing 7 days
  • LOCK if closing fifteen days
  • LOCK if closing thirty days
  • TO SWIM if closing 45 days
  • TO SWIM if closing 60 days

To find out which tariffs are available to you, compare the tariffs of at least three of best mortgage lenders before blocking.


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