All rates are lower today

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Mortgage rates have fallen since yesterday. Here’s what they look like on August 3, 2021:

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

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30-year mortgage rates

The 30-year average mortgage rate today stands at 3.024%, down 0.011% from yesterday. At today’s rate, you’ll pay principal and interest of $ 423.00 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 is 2.785%, down 0.004% from yesterday. At today’s rate, you’ll pay principal and interest of $ 544.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 121.00 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 21,721.00 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 2.285%, down 0.006% from yesterday. At today’s rate, you’ll pay principal and interest of $ 656.00 for every $ 100,000 you borrow. Compared to the 30 year loan, your monthly payment will be $ 233.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 34,077.00 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average 5/1 ARM rate is 3.148%, down 0.016% from yesterday. If you buy an ARM 5/1, you are guaranteed the same interest rate for five years, but from there the rate can go up. Sometimes a 5/1 ARM can pay off when it gets you a lower rate than a 30-year mortgage. But this is not the case today. On the contrary, you will actually get a lower interest rate – a guaranteed rate not to increase – with a 30-year loan, and therefore an adjustable rate mortgage does not make sense at this time.

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 very attractive historically. 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 rates today are extremely low, we don’t know if 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 are ready to get a mortgage, contact different lenders to find out what rates they are paying. And also, take a look at the closing costs. It could be that a lender is more competitive in terms of rates, but compensates with ultra-high fees. You will need to assess the big picture before making your choice.

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