Today’s Mortgage Rates – Aug 4, 2021: Rates Fall



August 4, 2021 mortgage rates on all loans. Homeowners must compare offers from different mortgage lenders to find the best rate they can qualify for based on their financial data. But it’s a good idea to know the average rates to see how they compare to what lenders are offering you.

Check out 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 3.007%, which is 0.017% lower than yesterday’s average of 3.024%. Borrowing at today’s average rate will leave you with a monthly principal and interest payment of $ 422 for every $ 100,000 in mortgage debt. The total interest expense will be $ 51,913 for every $ 100,000 over the life of the loan.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.735%, which is 0.05% below the average of 2.785% yesterday. At today’s average rate, the monthly principal and interest payments would be $ 541 per $ 100,000 in mortgage debt. The total interest expense is $ 29,942 for every $ 100,000 borrowed over the life of the loan.

This loan is cheaper over time than the 30-year option, but more expensive every month. If you shorten the payout time, each payment will be higher, but the overall costs will be lower because you do not pay interest for that long.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.273%, which is 0.012% below yesterday’s average of 2.285%. For every $ 100,000 borrowed at today’s average rate, the total monthly principal and interest payments will be $ 656. Your total interest expense over the life of the loan is $ 18,108 for every $ 100,000 borrowed.

If you can afford high monthly payments, the 15 year loan option will save you a lot of money over time compared to 30 and 20 year loans. You will also own your home for free and clear it much earlier with this loan, which will give you more financial flexibility in the future.

5/1 ARM

Average 5/1 speed ARM is 2.907%, which is 0.241% lower than yesterday’s average of 3.148%. The interest rate at which your loan starts is guaranteed for only five years. After that, your rate may increase at least once a year. If this happens, your monthly payments and interest expenses will increase in the remaining time. Consider if the risk is worth it.

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 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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