Lower rates for 30 and 15 year loans

Mortgage rates are now mixed. While the 30 and 15 year loans have gone down, the 20 year loan has increased very slightly. Meanwhile, the 5/1 ARM is on the rise a bit. Here’s what the rates look like on December 2, 2021:

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

30-year mortgage rates

The 30-year average mortgage rate today stands at 3.305%, down 0.013% from yesterday. At today’s rate, you’ll pay principal and interest of $ 438.00 for every $ 100,000 you borrow. This does not include additional expenses like property taxes and home insurance premiums.

20-year mortgage rates

The 20-year average mortgage rate today stands at 3.048%, up 0.001% from yesterday. At today’s rate, you’ll pay principal and interest of $ 557.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 119.00 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 23,982.00 in interest over your repayment period for every $ 100,000 you borrow.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.536%, down 0.026% from yesterday. At today’s rate, you’ll pay principal and interest of $ 668.00 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 230.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 37,370.00 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average 5/1 ARM rate is 3.163%, up 0.094% from yesterday. A 5/1 ARM can save you money up front compared to a 30-year fixed loan. But after the first five years of paying off your mortgage, your rate could go up. If you want the security that comes with guaranteed mortgage payments until your home is paid off, you’ll need to take out a fixed rate loan, even if that initially means locking in a higher interest rate.

Should I lock in my mortgage rate now?

A mortgage rate freeze guarantees you a specific interest rate for a certain period of time – typically 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 by the time 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 quite attractive, historically speaking. 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 loan if rates drop before your mortgage closes. While the rates today are quite low, we don’t know if the rates will go up or down in 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

If you’re ready to buy a home and need a loan to finance it, contact a group of lenders and see what mortgage rates and closing costs they can offer you. And if you want to increase your chances of getting a great deal, take a few steps to boost your credit score before you apply. This could mean paying off some existing credit card debt or correcting errors in your credit report that could lower your score.


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