If you are thinking about buying a new home, on average mortgage rates is probably worth watching out for. While your personal financial situation determines your rate, national averages also affect how much you are likely to pay on a home loan.
Here are the average mortgage rates today as of July 28, 2021, so you can understand how much a loan might cost you:
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30 year mortgage rate
Average 30 year mortgage rate today is 3.056%, which is 0.011% higher than yesterday’s average of 3.045%. The loan at today’s average rate will be accompanied by a monthly principal and interest payment of $ 425 for every $ 100,000. You would look at the total interest expense of $ 52,867 on the $ 100,000 mortgage debt over the life of the loan.
Mortgage rates for 20 years
Average 20 year mortgage rate today is 2.795%, which is 0.03% higher than the average value of 2.765% yesterday. If you borrow at today’s average rate, you will have a monthly principal and interest payment of $ 544 for every $ 100,000. Throughout the loan repayment period, you will have to pay a general interest expense of $ 30,654 for every $ 100,000 borrowed.
Over time, your interest expense on this loan is lower than on a 30-year loan. But every monthly payment is higher. Both of these factors are due to the fact that you shorten the time to pay off the loan. You will need to decide if you accept higher monthly payments in exchange for lower overall interest costs.
Mortgage rates for 15 years
Average 15 year mortgage rate today is 2.336%, which is 0.003% higher than yesterday’s average of 2.333%. A mortgage at today’s average interest rate will cost you $ 659 per 100,000 borrowed. Over the term of the loan, the total interest expense is $ 18,637 per $ 100,000 in mortgage debt.
This loan has much higher monthly payments than a 30 or 20 year loan, but you will save a lot of money on interest and get out of debt much faster. See if payments are available and if you prefer to pay more each month so you can make fewer payments over time.
Average 5/1 speed ARM is 2.886%, which is 0.094% higher than yesterday’s average of 2.792%. You will not be guaranteed this rate for the entire duration of the loan. Since this is an adjustable rate mortgage, your rate will start adjusting in five years. As it can rise, your monthly payments and general expenses can become more expensive. Consider if the risk is worth it, or if you would prefer a guaranteed fixed rate 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 in case rates rise between now and the time 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.