Lower rates for a 30-year loan

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At the start of October, average mortgage rates are mixed, with some rising and others falling. Here’s what the average mortgage rates look like today on October 4, 2021 so you can see how much you could end up paying for a home loan if you apply soon:

The data source: The Ascent National Mortgage Interest Rate Tracker.

6 simple tips to get a 1.75% mortgage rate

Secure access to The Ascent’s free guide on how to get the lowest mortgage rate when buying your new home or refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.

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30-year mortgage rates

The 30-year average mortgage rate today stands at 3.209%, down 0.002% from Friday’s average of 3.211%. A mortgage at the current average interest rate would cost you $ 433 per $ 100,000 borrowed. Over the life of the loan, the total interest charge would be $ 55,865 per $ 100,000 of mortgage debt.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.891%, up 0.014% from Friday’s average of 2.877%. At today’s average rate, the monthly principal and interest payment would be $ 549 per $ 100,000 of mortgage debt. You would have a total interest charge of $ 31,798 per $ 100,000 of mortgage debt over the term of the loan.

The loan repayment tenure affects the interest rate, total payment charges, and monthly payments. A 20 year loan has a lower interest rate and total costs than the 30 year loan due to its shorter repayment term. But with so few payments to make, each monthly payment has to be higher.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.426%, unchanged from Friday’s average. A loan at today’s mid-rate would have a monthly principal and interest payment of $ 663 for every $ 100,000 borrowed. The total interest charge would be $ 19,396 per $ 100,000 borrowed over the term of the loan.

With an even shorter repayment term, the 15 year loan further reduces the interest charges compared to the 20 year loan and also lowers the total borrowing costs. However, paying off a mortgage in such a short period of time dramatically increases each monthly payment, which could make this loan option unaffordable for many borrowers.

5/1 arm

The average 5/1 ARM rate is 3.146%, up 0.003% from Friday’s average of 3.143%. ARM stands for Variable Rate Mortgage. After five years, this rate could change, unlike a fixed rate loan. If your rate goes up, and there’s a good chance it does, your monthly payments and total interest charges could go up.

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 in 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.


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