On November 5, 2021, average mortgage rates are up for some loans and down for others, but have fallen for two of the most popular borrowing options. Rates differ depending on the type of loan and the length of the loan, so check out the current average rates for the different loan options to see how much you could afford depending on the loan you choose.
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.273%, down 0.002% from yesterday’s average of 3.275%. A loan at the current average rate would cost you $ 436 per month in principal and interest for every $ 100,000 you borrow. During the entire repayment period of your loan, you would pay a total interest charge of $ 57,129 for every $ 100,000 borrowed.
20-year mortgage rates
The 20-year average mortgage rate today stands at 2.935%, up 0.002% from yesterday’s average of 2.933%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $ 551 for every $ 100,000 of mortgage debt. You would have a total interest charge of $ 32,324 per $ 100,000 of mortgage debt over the term of the loan.
Interest costs less over time with a shorter loan term, both because the rate is lower and you won’t be paying it for that long. This makes the total costs cheaper with the 20 year mortgage compared to the 30 year one. However, when you reduce the number of payments made, it increases each payment, so it is important to make sure that you can afford to choose a shorter repayment period.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.499%, down 0.02% from yesterday’s average of 2.519%. If you borrow at today’s average rate, your monthly principal and interest payments would be $ 667 for every $ 100,000 borrowed. The total interest charge would be $ 20,014 per $ 100,000 borrowed at today’s average rate.
The total saving over time is substantial with this loan compared to 20 years or 30 years, but the flip side is the high monthly payments. Decide if you’d rather pay less over time with a higher monthly payment or if you’d rather have a lower monthly payment and more budget flexibility, even if that means your mortgage costs more in the end.
The average 5/1 ARM rate is 3.017%, up 0.126% from yesterday’s average of 2.891%. This is an adjustable rate loan, so you are only guaranteed this rate for the first five years. Your loan costs and monthly payments can increase if interest rates rise, so you should be aware of the risks associated with ARMs.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You will usually pay a fee to lock in your mortgage rate, but this way you are protected in the event of a rate hike before your mortgage closes.
If you plan to close your home within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are very competitive. But if your close is more than 30 days away, you might want to choose an adjustable rate lock instead for what will usually be a higher fee, but could save you money in the long run. A variable rate lock allows you to get a lower rate on your mortgage if rates drop before you close, and while rates today are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it is beneficial to:
- LOCK if closing 7 days
- LOCK if closing 15 days
- LOCK if closing 30 days
- FLOAT if closing 45 days
- FLOAT if closing 60 days
To find out what rates are on offer, compare the rates of at least three of the top mortgage lenders before you lock in.