Current Mortgage Rates — February 17, 2022: Most Rates Higher

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Is it the right time to take out a mortgage? Here’s the scoop.

Mortgage rates are higher today for all loan products except the 20-year loan, which is down slightly from yesterday’s level. Here’s what the rates look like as of February 17, 2022:

Type of mortgage

Today’s interest rate

30-year fixed mortgage

4.135%

20-year fixed mortgage

3.794%

15-year fixed mortgage

3.347%

ARM 5/1

3.337%

The data source:class=”little-legend”> The National Mortgage Interest Rate Tracker from The Ascentclass=”little-legend”>.class=”little-legend”>

30-year mortgage rates

The average 30-year mortgage rate today is 4.135%, up 0.0410% from yesterday. At today’s rates, you’ll pay $486.00 principal and interest for every $100,000 you borrow. This does not include additional expenses such as property taxes and home insurance premiums.

20-year mortgage rates

The average 20-year mortgage rate today is 3.794%, down 0.020% from yesterday. At today’s rates, you’ll pay $595.00 principal and interest for every $100,000 you borrow. Although your monthly payment will increase by $109.00 with a 20-year loan of $100,000 compared to a 30-year loan of the same amount, you will save $31,970.00 in interest over your repayment period for every $100,000 borrowed.

15-year mortgage rates

The average 15-year mortgage rate today is 3.347%, up 0.020% from yesterday. At today’s rates, you’ll pay $707.00 principal and interest for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $221.00 higher per $100,000 of mortgage principal. However, your interest savings will be $47,448.00 over the length of your repayment period per $100,000 of mortgage debt.

RMA 5/1

The average ARM 5/1 rate is 3.337%, up 0.032% from yesterday. A 5/1 ARM should result in much lower monthly mortgage payments than a 30 and 20 year loan. But after five years, your ARM’s interest rate could spike, making your mortgage payments more expensive. Make sure you’re willing to take that risk before you pass up the opportunity to get a fixed loan.

Should I lock in my mortgage rate now?

A mortgage rate lock guarantees you a specific interest rate for a certain 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 spike between now and when you take out your home loan.

If you’re planning to close on your home in the next 30 days, it pays to lock in your mortgage rate to today’s rates, especially since they’re quite attractive, historically speaking. 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 loan if rates drop before your mortgage closes. Although today’s rates are somewhat low, we don’t know if they will increase or decrease 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

If you’re ready to buy a home, shop around with different mortgage lenders to compare the deals available to you. Be sure to ask about not just pricing, but also closing costs. The last thing you want is to get a low interest rate on a mortgage only to end up with high closing costs that are eating into your savings.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.

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