Rising rates for most loans

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How much interest will the typical buyer pay for a mortgage? Check the daily average rates to find out.

On November 24, 2021, average mortgage rates are up for most loans. Take a look at today’s average rates for fixed and adjustable rate loans to get an idea of ​​what the typical borrower would pay if they took out a loan today to buy a home.

Type of mortgage

Today’s interest rate

30-year fixed mortgage

3.316%

20-year fixed mortgage

3.029%

15-year fixed mortgage

2.591%

ARM 5/1

3.030%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.316%, up 0.01% from yesterday’s average of 3.306%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $439 per $100,000 of mortgage debt. Your total interest costs over the life of the loan would equal $57,981 for every $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.029%, up 0.048% from yesterday’s average of 2.981%. For every $100,000 borrowed at today’s average rate, your total monthly principal and interest payment would be $556. You would have total interest costs of $33,452 per $100,000 of mortgage debt over the life of the loan.

A 20-year mortgage provides significant savings over time compared to a 30-year loan. This is because you are paying interest for a decade less and the rate is lower. But it costs more each month since you make far fewer payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.591%, down 0.003% from yesterday’s average of 2.594%. A mortgage at today’s average interest rate would cost you $671 for every $100,000 borrowed. Throughout the repayment period of your loan, you will pay total interest costs of $20,795 for every $100,000 borrowed.

This is an even cheaper loan option over time than the 20 or 30 year loan and at a very competitive rate. However, when you drastically reduce the payment term, you end up with very high monthly payments that could strain your budget unless you make sure you’re buying a home you can easily afford.

RMA 5/1

The average 5/1 ARM rate is 3.030%, up 0.084% from yesterday’s average of 2.946%. Your rate is only guaranteed for the first five years. It is linked to a financial index and can be adjusted once a year after the end of the initial five-year period. There is a good chance that rates will eventually go up as they remain very competitive at the moment, so this loan option is risky.

Should I lock in my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a set period of time – usually 30 days, but you may be able to guarantee your rate for up to 60 days. You’ll usually pay a fee to lock in your mortgage rate, but that way you’re protected if rates go up between now and when you close out your mortgage.

If you’re planning on closing your home in the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they’re so competitive. But if your close is more than 30 days away, you might want to choose a variable rate lock instead for what will usually be higher fees, 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 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 for:

  • 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 best mortgage lenders before committing.

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