For most loans, rates fall

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Did mortgage rates rise or fall on June 14, 2021? Find out here.

June 14, 2021 mortgage rates fell on most loans. If you are planning to buy a home and are planning to borrow, it is a good idea to keep an eye on the average rates charged by lenders.

Here are today’s average mortgage rates as of June 14, 2021:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.131%, which is 0.007% below the average on Friday (3.138%). Borrowing at today’s average rate will leave you with a monthly principal and interest payment of $ 429 for every $ 100,000 in mortgage debt. The total interest expense is $ 54,333 for every $ 100,000 in mortgage debt over the life of the loan.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.919%, which is 0.012% above the average on Friday (2.907%). For every $ 100,000 borrowed at today’s average rate, there is a monthly principal and interest payment of $ 551. Throughout the loan repayment period, you must pay a total interest expense of $ 32,132 for every $ 100,000 borrowed.

You will save on interest over time with this loan compared to a 30 year loan as you do not pay interest for that long. But you will have to make much higher monthly payments than with a 30 year loan, since you are not making the same amount of payments.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.397%, down 0.009% below Friday’s average of 2.406%. You would look at the principal and interest payments of $ 662 on $ 100,000 borrowed at today’s average rate. The total interest cost will be $ 19,151 per $ 100,000 borrowed.

This loan option provides the highest monthly payments due to the short repayment period. It also has the lowest overall interest expense. You will need to weigh the trade-off between higher monthly payments and lower overall interest costs before deciding if this option is right for you.

5/1 ARM

Average 5/1 speed ARM is 2.969%, which is 0.066% below the average on Friday (3.035%). This rate is guaranteed only for the first five years after receiving the loan. Thus, although it is lower than a 30-year fixed rate loan from the start, it is a much more risky option.

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 the time 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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