Jul 19, 2021 mortgage rates up in all directions. While your individual financial situation will dictate the rates you pay on a home loan, it can be helpful to know how much a typical borrower will pay.
Check out today’s average mortgage rates to get an idea of how expensive a home loan will be:
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30 year mortgage rate
Average 30 year mortgage rate today is 3.105%, which is 0.005% more than on Friday an average of 3.100%. If you borrow at today’s average rate, your monthly principal and interest payments will be $ 427 for every $ 100,000. Throughout the loan repayment period, you will have to pay a general interest expense of $ 53,824 for every $ 100,000 borrowed.
Mortgage rates for 20 years
Average 20 year mortgage rate today is 2.863%, which is 0.036% more than on Friday an average of 2.827%. You would look at the principal and interest payments of $ 548 on $ 100,000 borrowed at today’s average rate. For every $ 100,000 that you borrow at today’s average rate, the total interest expense is $ 31,463.
Over time, the interest expense on this loan is lower than on a 30-year loan, but your monthly payments are higher. This is because you do not make that many payments and do not pay interest for that long.
Mortgage rates for 15 years
Average 15 year mortgage rate today is 2.399%, which is 0.002% more than on Friday an average of 2.397%. If you borrow at today’s average rate, you will have a monthly principal and interest payment of $ 662 for every $ 100,000. The total interest expense will be $ 19,168 for every $ 100,000 over the life of the loan.
The maturity of this loan is even shorter than that of a 20-year or 30-year loan, so the interest costs are even lower over time, but the monthly payment is even higher. While saving on interest like this is a good thing, high monthly payments can sometimes overwhelm your budget.
Average 5/1 speed ARM is 2,900%, which is 0.025% higher than the average on Friday (2.875%). This rate is guaranteed to you only for the first five years. Then the speed can be adjusted. If it changes, your total loan costs and monthly payment will increase. Make sure you accept this risk.
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 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.