Today’s Mortgage Rates – June 25, 2021: Fixed Rates Reduced

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Mortgage rates on fixed loans is lower today than yesterday. This is what they look like on June 25, 2021:

Data source: National Ascent Mortgage Interest Rate Tracking

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30 year mortgage rate

Average 30 year mortgage rate today is 3.204%, which is 0.011% lower than yesterday. At today’s rate, you will pay $ 433.00 in principal and interest for every $ 100,000 you borrowed. This does not include additional costs such as property taxes and homeowner insurance premiums.

Mortgage rates for 20 years

Average 20 year mortgage rate today is 2.955%, which is 0.024% lower than yesterday. At today’s rate, you will pay principal and interest of $ 552.00 for every $ 100,000 you borrowed. Although your monthly payment will increase by $ 119.00 on a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 23,239 in interest over the repayment period for every $ 100,000 borrowed on credit.

Mortgage rates for 15 years

Average 15 year mortgage rate today is 2.496%, which is 0.002% lower than yesterday. At today’s rate, you will pay $ 667.00 in principal and interest for every $ 100,000 you borrowed. Compared to a 30-year loan, your monthly payment will be $ 234.00 more for every $ 100,000 of your mortgage principal. However, your interest savings will be $ 35,778 over the maturity period based on $ 100,000 in mortgage debt.

5/1 ARM

Average 5/1 speed ARM is 3.011%, which is 0.114% more than yesterday. You will get some savings with a 5/1 ARM over a 30 year mortgage based on today’s rates, but you also run the risk of increasing your rate after the initial five year period. If you can increase your monthly payment, you may want to consider getting a 20 year mortgage, which today may be available at a lower rate than 5/1 ARM. This way, your rate will be guaranteed for the entire repayment period.

Do I have to lock in 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 if rates rise between now and when your home loan is closed.

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 very attractive from a historical point of view. 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 loan rate if rates fall before you close your mortgage. While today’s rates are pretty low, we don’t know if they 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

If you are ready to take out a home loan, contact others mortgage lenders to find out what rates they offer you. And also pay attention to the closing cost. It may be that one lender offers a lower mortgage interest rate but much higher completion fees, so look at the big picture when evaluating options.

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