Average mortgage rates today they are mixed: some are falling, others are up, and 30-year-olds are unchanged. While the rate of each borrower is determined by their credit rating and other financial factors, it is helpful to keep track of the average rates. This gives you an idea of how much a typical borrower might pay for a loan.
Here are the average rates for 23 August 2021:
6 simple tips to secure a 1.75% mortgage rate
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30 year mortgage rate
The average 30 year mortgage rate today is 3.070%, unchanged from Friday’s average. If you borrow at today’s average rate, your monthly principal and interest payments will be $ 425 for every $ 100,000. Over the life of the loan, your total interest expense will be $ 53,140 for every $ 100,000 borrowed.
Mortgage rates for 20 years
The average 20 year mortgage rate today is 2.786%, which is 0.013% more than on Friday an average of 2.773%. You would look at the principal and interest payments of $ 544 on $ 100,000 borrowed at today’s average rate. If you choose this loan option, you will pay a total interest expense of $ 30,547 for every $ 100,000 in mortgage debt over the life of the loan.
The repayment schedule of your loan affects your overall interest expenses over time as well as your monthly payments. Since a 20-year loan has a shorter maturity than a 30-year loan, each monthly payment must be higher to pay off the loan in full ten years earlier. But over time, you save money on interest because you pay ten years less interest.
Mortgage rates for 15 years
The average 15 year mortgage rate today is 2.324%, which is 0.004% below the average on Friday (2.328%). Borrowing at today’s average rate will leave you with a monthly principal and interest payment of $ 659 for every $ 100,000 in mortgage debt. The total cost of paying interest would be $ 18,536 per $ 100,000 borrowed at today’s average rate.
As a loan with the shortest maturity, a 15 year mortgage saves you significant money over time as you do not pay nearly as much interest as you would with a 20 or 30 year loan. But you have to make much higher monthly payments.
The average 5/1 speed ARM is 2.921%, which is 0.047% below the average on Friday (2.968%). This rate is fixed only for the first five years, after which it can be adjusted once a year. There is a rate hike risk that you will not face if you opt for a 30 year fixed rate loan instead. Consider this risk carefully, because if your rate rises, it will become more expensive to pay off the 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 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 before 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 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 15 days
- LOCK if closing thirty days
- SWIM if closing 45 days
- 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.