Mortgage rates are mostly higher today than yesterday. And the 20-year loan, which has gone down, has fallen only slightly. Here’s what the rates look like on November 25, 2021:
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.327%, up 0.011% from yesterday. At today’s rate, you’ll pay principal and interest of $ 439.00 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 3.028%, down 0.001% from yesterday. At today’s rate, you’ll pay principal and interest of $ 556.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 117.00 with a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 24,758.00 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 2.623%, up 0.032% from yesterday. At today’s rate, you’ll pay principal and interest of $ 673.00 for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 234.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 37,030.00 over the duration of your repayment period per $ 100,000 of mortgage debt.
The average 5/1 ARM rate is 3.059%, up 0.029% from yesterday. An ARM 5/1 will allow you to lock in an interest rate on a mortgage that is lower than a 30-year loan initially. But once those first five years go up, your rate could adjust once a year, up or down. If you want the stability of predictable mortgage payments, you will need to sign a fixed rate loan.
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 in 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 apply for a mortgage, collect offers from different lenders and see what rates and fees they match. One lender may be able to offer you a better rate and lower closing costs than another, so it’s worth spending time shopping around.