July 5, 2021 mortgage rates decline on all loans with a fixed rate. Your individual financial situation will determine your individual rate, but it is still recommended to keep track of the national averages. This will help you see how rates change.
Here’s what happened to average mortgage rates today:
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30 year mortgage rate
Average 30 year mortgage rate today is 3.165%, which is 0.006% below the average on Friday (3.171%). At today’s average rate, you will pay $ 431 a month in principal and interest for every $ 100,000 you borrowed. The total interest expense will be $ 55,000 for every $ 100,000 over the life of the loan.
Mortgage rates for 20 years
Average 20 year mortgage rate today is 2.925%, down 0.029% below Friday’s average of 2.954%. If you borrow at today’s average rate, your monthly principal and interest payments will be $ 551 for every $ 100,000. Over the life of the loan, your total interest expense will be $ 32,204 for every $ 100,000 borrowed.
This loan will pay less interest over time than you would with a 30-year loan, but each monthly payment will be higher since you are not making the same amount of payments. Consider which is more important: lower monthly costs or lower total costs.
Mortgage rates for 15 years
Average 15 year mortgage rate today is 2.441%, down 0.01% from Friday’s average of 2.451%. A loan at today’s average rate will cost you $ 664 a month in principal and interest for every $ 100,000 you borrow. Your total interest expense over the life of the loan is $ 19,523 for every $ 100,000 borrowed.
The total interest expense for a 15-year loan is even lower than for a 20-year loan. Of course, each monthly payment is much higher. Before choosing this loan, make sure the higher monthly payments fit comfortably within your budget.
Average 5/1 speed ARM is 2.989%, which is 0.014% higher than the average on Friday (2.975%). You will only be guaranteed this rate for five years. After that, it will move along with the financial index and may adjust. Beware of the risk that your loan will become more expensive if you choose ARM.
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 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.