| Mortgage Type | Today's Interest Rate |
|---|---|
| 30-year fixed mortgage | 2.788% |
| 20-year fixed mortgage | 2.715% |
| 15-year fixed mortgage | 2.278% |
| 5/1 ARM | 3.350% |
30-year mortgage rates
The average 30-year mortgage rate today is 2.788%, down .001% compared with yesterday's average rate of 2.789%. For each $100,000 borrowed at today's average rate, your monthly principal and interest payment would add up to $410. Your total interest costs over the life of the loan would equal $47,692 per $100,000 borrowed.
Check out The Ascent's mortgage calculator to see what your monthly payment might be and how much your loan will ultimately cost. Also learn how much money you'd save by snagging a lower interest rate, making a larger down payment, or choosing a shorter loan term.
20-year mortgage rates
The average 20-year mortgage rate today is 2.715%, up .06% compared with yesterday's average rate of 2.655%. If you borrow at today's average rate, your monthly principal and interest payment would be $540 per $100,000 borrowed. Total interest costs would add up to $29,705 per $100,000 borrowed over the life of the loan.
Although monthly payments are higher than on a 30-year loan, total interest costs are lower. Both the higher payments and lower total borrowing costs are explained by the fact you're borrowing for a decade less time.
15-year mortgage rates
The average 15-year mortgage rate today is 2.278%, down .011% compared with yesterday's average rate of 2.289%. At today's average rate, you'd pay $656 per month in principal and interest per $100,000 borrowed. Your total interest costs over the life of the loan would equal $18,150 per $100,000 borrowed.
Again, the higher monthly payment and lower total interest costs are explained by the shortened repayment timeline.
5/1 ARMs
The average 5/1 ARM rate is 3.350%, down .011% compared with yesterday's average rate of 3.361%. ARM stands for adjustable-rate mortgage. With this type of loan, your rate is guaranteed only for the first five years, after which it can adjust.
Since the starting rate is higher than on fixed-rate loan options and there's a good chance rates will adjust upward from the record-low rates borrowers are currently receiving, there's little reason to consider an ARM.
Should I lock my mortgage rate now?
A mortgage rate lock guarantees you a certain interest rate for a specified period of time -- usually 30 days, though you may be able to secure your rate for up to 60 days. You'll generally pay a fee to lock in your mortgage rate, but that way, you're protected in case rates climb between now and when you actually close on your mortgage.
If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today's rates -- especially since they're so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, and while today's rates are still quite low, we don't know if rates will go up or down over the next few months. As such, it pays to:
- LOCK if closing in 7 days
- LOCK if closing in 15 days
- LOCK if closing in 30 days
- FLOAT if closing in 45 days
- FLOAT if closing in 60 days
Before locking in, you should get rate quotes from at least three of the best mortgage lenders to ensure you're getting a loan at the most competitive possible rate.
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December 02, 2020 at 07:26PM
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Current Mortgage Rates -- Dec 2: Rates Down Slightly - The Motley Fool
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