Mortgage loan rates sitting at lower levels today compared to yesterday. This is what they look like on July 22, 2021:
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30 year mortgage rate
Average 30 year mortgage rate today is 3.054%, which is 0.004% lower than yesterday. At today’s rate, you will pay $ 424.00 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
Average 20 year mortgage rate today is 2.789%, which is 0.016% lower than yesterday. At today’s rate, you will pay $ 544.00 in principal and interest for every $ 100,000 you borrowed. Although your monthly payment will increase by $ 120.00 on a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 22,187.00 in interest over the repayment period for every $ 100,000 borrowed.
Mortgage rates for 15 years
Average 15 year mortgage rate today is 2.364%, which is 0.009% lower than yesterday. At today’s rate, you will pay $ 660.00 in principal and interest for every $ 100,000 you borrowed. Compared to a 30-year loan, your monthly payment will be $ 236.00 more for every $ 100,000 of your mortgage principal. However, your interest savings will be $ 33,837.00 over the maturity period based on $ 100,000 in mortgage debt.
Average 5/1 speed ARM is 3.091%, which is 0.040% less than yesterday. If you take the ARM 5/1, your rating will be good for five years, but after that it is not guaranteed. Based on today’s rates, you will actually get a lower interest rate with a 30-year fixed loan that will remain in effect for the entire maturity period, so 5/1 ARM doesn’t make sense right now.
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 in the period between now and the close of the 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 very attractive from a historical point of view. 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 loan rate if rates fall before you close your mortgage. While today’s rates are pretty low, we don’t know if they 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
If you are ready to apply for a mortgage, contact others creditors to see what rates they come back with. Also, don’t forget to ask about closing costs, which are the fees you will pay to get a loan. Closing costs can eat up your savings, and they can vary from lender to lender, so be sure to do your research before moving on.