Rates are falling at all levels
On November 8, 2021, average mortgage rates are down for all loans. When rates go up, borrowing for a home loan becomes more expensive. But if the rates go down, you may be able to pay less over time for your loan.
Find out how average mortgage rates are trending today to see if it’s time to get a loan for a home:
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.260%, down 0.013% from Friday’s average of 3.273%. A loan at today’s average rate would carry a monthly principal and interest payment of $ 436 per $ 100,000 borrowed. Over the life of the loan, your total interest charges would be $ 56,872 per $ 100,000 borrowed.
20-year mortgage rates
The 20-year average mortgage rate today stands at 2.900%, down 0.035% from Friday’s average of 2.935%. A mortgage at the current average interest rate would cost you $ 550 for every $ 100,000 you borrow. For every $ 100,000 you borrow at today’s average rate, the total interest charge would be $ 31,905.
Although more expensive each month than the 30-year loan, the 20-year fixed rate home loan is considerably less expensive over time. The lower cost comes from the fact that the interest rate is lower and the shorter repayment term means you won’t be paying interest for that long.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.480%, down 0.019% from Friday’s average of 2.499%. For every $ 100,000 borrowed at today’s average rate, your monthly principal and interest payment would be $ 666. The total interest charge would be $ 19,853 per $ 100,000 of mortgage debt over the term of the loan.
This loan is the cheapest of the three fixed rate loans because the rate is even lower and the repayment period even shorter. Of course, you have to make considerably higher monthly payments when you work to get off your mortgage in half the time than you would need with a 30-year loan.
The average 5/1 ARM rate is 2.948%, down 0.069% from Friday’s average of 3.017%. This rate is blocked for five years and is then adjustable, which means that it can evolve with a financial index. There is a good chance that your rate will increase if you take this loan now, which will increase both the monthly payments and the total cost of the loan over time.
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 available to you, compare the rates of at least three of the top mortgage lenders before you lock in.