Mortgage Rates

As we speak’s Mortgage Charges — July 27, 2021: Most Charges Drop


Mortgage rates have largely fallen since yesterday. This is what they look like on July 27, 2021:

Data Source: Ascent’s National Mortgage Rate Tracking.

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30 year mortgage interest

The average 30 year mortgage rate today is 3.045%, 0.002% more than yesterday. At today’s rate, for every $ 100,000 you borrow, you pay $ 424.00 in principal and interest. This does not include additional expenses such as property taxes and home insurance premiums.

20 year mortgage interest

The average 20 year mortgage rate today is 2.765%, 0.007% less than yesterday. At today’s rate, for every $ 100,000 you borrow, you pay principal and interest of $ 543.00. Although your monthly payment will increase by $ 119.00 on a $ 100,000 20 year loan compared to a $ 119.00 30 year loan of the same amount, you will save $ 22,471 in interest for every 100,000 over your repayment period USD you borrow.

Mortgage rates for 15 years

The average mortgage rate for 15 years is 2.333% today, 0.010% less than yesterday. At today’s rate, for every $ 100,000 you borrow, you pay a principal and interest of $ 659.00. Compared to the 30 year loan, your monthly payment is $ 235.00 more per $ 100,000 mortgage equity. However, your interest savings will be $ 34,140.00 per $ 100,000 mortgage debt over the life of your repayment period.

5/1 ARMs

The average 5/1 ARM rate is 2.792%, 0.090% less than yesterday. When you take out a 5/1 ARM, your interest rate will remain in place for five years but may go up or down beyond that depending on market conditions. Since taking out a variable rate mortgage involves risk, you may want to take out a fixed rate loan instead, given that today’s interest rates are so competitive.

Should I set my mortgage rate now?

A mortgage lock guarantees you a specific interest rate for a specific period of time – usually 30 days, but you may be able to secure your interest rate for up to 60 days. You usually pay a fee to lock your mortgage rate, but that way you are protected if interest rates rise between now and when you close your home loan.

If you plan to close your home within the next 30 days, it pays to fix your mortgage rate based on today’s rates – especially since they are very attractive historically. However, if your graduation is more than 30 days away, you may want to choose a floating rate lock instead, for a typically higher fee, but which can save you money in the long run. With a floating rate lock, you can secure a lower interest rate on your loan if interest rates fall before you close your mortgage. Although today’s rates are pretty low, we don’t know if rates will go up or down in the next few months. So it’s worth it:

  • LOCK when closed in 7 days
  • LOCK if it closes in 15 days
  • LOCK if it closes in 30 days
  • FLOAT if closed in 45 days
  • FLOAT if closed in 60 days

When you feel the time is right to apply for a mortgage, check with various lenders to see what interest rates they can offer you. Also, do inquire about closing costs, the various fees you will have to pay to complete your home loan. Closing costs can vary by lender, as can prices, so shopping is a great way to ensure you are getting the best deal.