Loan drop for 30 and 20 years



Mortgage rates declined from yesterday for the 30 and 20 year loan, while the 15 year loan rose slightly. This is what they look like on August 20, 2021:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

The average 30 year mortgage rate today is 3.070%, which is 0.005% lower than yesterday. At today’s rate, you will pay $ 426.00 in principal and interest for every $ 100,000 you borrowed. This does not include additional costs such as property taxes and homeowner insurance premiums.

Mortgage rates for 20 years

The average 20 year mortgage rate today is 2.773%, which is 0.022% less than yesterday. At today’s rate, you will pay $ 543.00 in principal and interest for every $ 100,000 you borrowed. Although your monthly payment will increase by $ 117.00 on a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 22,797 in interest over the repayment period for every $ 100,000. which you borrowed.

Mortgage rates for 15 years

The average 15 year mortgage rate today is 2.328%, which is 0.009% more than yesterday. At today’s rate, you will pay $ 659.00 in principal and interest for every $ 100,000 you borrowed. Compared to a 30-year loan, your monthly payment will be $ 233.00 more by $ 100,000 in the principal on your mortgage. However, your interest savings will be $ 34,608.00 over the maturity period, based on $ 100,000 in mortgage debt.

5/1 ARM

The average 5/1 speed ARM is 2.968%, which is 0.015% less than yesterday. You will initially save money on monthly payments with an ARM 5/1 versus a 30 year mortgage. But after that five-year period ends, your ARM rate may increase, resulting in higher payouts. You may want to consider a fixed loan given how competitive today’s rates are.

Do I have to lock in 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 your mortgage is closed.

If you are planning to close your home within the next 30 days, then it will be beneficial to lock in your mortgage rate based on today’s rates – especially since they are very attractive from a historical point of view. But if there are more than 30 days left until your close, you can opt for a floating rate lock instead, for 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 loan rate if rates fall before you close your mortgage. Although today’s rates are extremely low, we do not know if they will go up or down in the next few months. Thus, it is beneficial:

  • LOCK if closing 7 days
  • LOCK if closing 15 days
  • LOCK if closing thirty days
  • SWIM if closing 45 days
  • FLOAT when closing after 60 days

If you are ready to get a mortgage, contact several different creditors to see what rates they come back with. And also don’t forget to ask about closing costs. A lender charging a low rate but very high commission may not be the best lender to work with, so get all this information before making a decision.


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