July 16, 2021 average mortgage rates grew slightly on most loans. If you are thinking of buying a home, check out the average rates for various mortgages including 30-year, 20-year and 15-year fixed rate mortgages, as well as 5/1 ARM.
This is how they look today:
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30 year mortgage rate
Average 30 year mortgage rate today is 3.100%, which is 0.004% higher than yesterday’s average of 3.096%. Borrowing at today’s average rate will leave you with a monthly principal and interest payment of $ 427 for every $ 100,000 in mortgage debt. You will be looking at a total interest expense of $ 53,726 on a $ 100,000 mortgage debt over the life of the loan.
Mortgage rates for 20 years
Average 20 year mortgage rate today is 2.827%, which is 0.054% below the average of 2.881% yesterday. If you borrow at today’s average rate, you will have a monthly principal and interest payment of $ 546 for every $ 100,000. Throughout the loan repayment period, you must pay a general interest expense of $ 31,035 for every $ 100,000 borrowed.
This loan has ten years less repayments than the 30-year loan. Since you don’t have many payments, each one should be larger. But over time, you will save a lot of money on interest because you don’t have to pay interest for that long.
Mortgage rates for 15 years
Average 15 year mortgage rate today is 2.397%, which is 0.008% higher than yesterday’s average (2.389%). A mortgage at today’s average interest rate will cost you $ 662 for every $ 100,000. The total cost of paying interest would be $ 19,151 per $ 100,000 borrowed at today’s average rate.
The 15 year mortgage has a very short maturity and very low rates. You can save a lot over time. However, despite the low rate, each payment must be higher because you are making far fewer payments.
Average 5/1 speed ARM is 2.875%, which is 0.01% more than yesterday’s average of 2.865%. ARM is an adjustable rate mortgage. In the case of ARM, this initial rate is only guaranteed for a certain number of years – in this case, five. After that, you run the risk of rate hikes, which can lead to an increase in your monthly payments and the total cost of the loan.
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 if 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.