Rates fall on 30-year and 15-year loans

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August 2, 2021 mortgage rates mixed, with some showing an upward trend and others downward. Potential home buyers should keep track of how rates are changing so they have an idea of ​​how much they will pay on their mortgage and if the time is right to get a home loan.

Here are the average mortgage rates today:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.035%, which is 0.007% below the average on Friday (3.042%). For every $ 100,000 borrowed at today’s average rate, there is a monthly principal and interest payment of $ 423. The total cost of interest would be $ 52,458 per $ 100,000 at today’s average rate.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.789%, which is 0.013% higher than Friday’s average of 2.776%. If you borrow at today’s average rate, you will have a monthly principal and interest payment of $ 544 for every $ 100,000. You will be looking at a total interest expense of $ 30,583 on a $ 100,000 mortgage debt over the life of the loan.

The total interest expense on this loan is lower compared to a 30 year mortgage, but each monthly payment is higher. This is what happens when you cut your payment schedule by 10 years. You pay interest in much less time, but you make much fewer payments, so each must be higher.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.291%, down 0.006% from Friday’s average of 2.297%. You would look at the principal and interest payments of $ 657 for every $ 100,000 borrowed at today’s average rate. Your total interest expense over the life of the loan is $ 18,259 per 100,000 borrowed.

Due to its short maturity and low rate, this loan is the cheapest over time. However, you need to be prepared for much higher monthly payments if you choose a 15-year loan instead of a 20-year or 30-year mortgage.

5/1 ARM

Average 5/1 speed ARM is 3.164%, which is 0.085% higher than the average on Friday (3.079%). This rate may sound attractive, but it is only guaranteed for the first five years. With this loan, you have much less confidence than with a 30 year fixed rate loan. You must be willing to risk your rate going up, resulting in increased monthly payments and overall costs.

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 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 so competitive. But if there are more than 30 days left until 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:

  • CASTLE if closing 7 days
  • CASTLE if closing fifteen days
  • CASTLE 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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