Rate increases for all loans

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Average mortgage rates are rising for all loans to end the work week. If you are buying a home, average national mortgage rate trends will affect the cost of your mortgage, as will your individual financial situation.

Check out today’s average mortgage rates for October 8, 2021 to see what a loan could cost today if you’re a typical borrower:

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

6 simple tips to get a 1.75% mortgage rate

Secure access to The Ascent’s free guide that reveals how to get the lowest mortgage rate on your new home purchase or when refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.

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30-year mortgage rates

The 30-year average mortgage rate today stands at 3.207%, up 0.007% from yesterday’s average of 3.200%. For every $ 100,000 borrowed at today’s average rate, your total monthly payment of principal and interest would be $ 433. Over the life of the loan, your total interest charges would be $ 55,826 per $ 100,000 borrowed.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.914%, up 0.022% from yesterday’s average of 2.892%. A mortgage at the current average interest rate would cost you $ 550 for every $ 100,000 you borrow. For every $ 100,000 you borrow at today’s average rate, the total interest charge would be $ 32,073

The rate on this loan is lower than the 30 year loan, and the total loan costs over time are significantly lower both due to the low rate and the fact that you are paying interest for a full decade less. Unfortunately, this shortened repayment period results in higher monthly payments, however.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.409%, up 0.011% from yesterday’s average of 2.398%. At today’s average rate, you would pay $ 663 per month in principal and interest for $ 100,000 borrowed. During the entire repayment period of your loan, you would pay a total interest charge of $ 19,253 per $ 100,000 borrowed.

The monthly payments are very high on this loan because you have a very limited number of monthly payments to fully repay your debt. But the total amount you save over time is substantial compared to the 20 and 30 year loan due to the lower rate and the fact that you are paying interest for a lot less years. You will need to decide if higher payments are worth it to save money over time.

5/1 arm

The average 5/1 ARM rate is 3.148%, up 0.086% from yesterday’s average of 3.062%. This rate is not guaranteed for the duration of the loan, unlike other fixed-rate mortgage loans. It can change after just five years and can go up since the rates are very low right now. You could end up with higher monthly payments and higher total loan costs so be aware of this risk before choosing this loan.

Should I lock in my mortgage rate now?

A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 30 days, but you may be able to guarantee your rate for up to 60 days. You will usually pay a fee to lock in your mortgage rate, but this way you are protected in the event of a rate hike before 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 competitive. 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 mortgage if rates drop before you close, and while rates today are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it is beneficial to:

  • LOCK if closing 7 days
  • LOCK if the closure 15 days
  • LOCK if closing 30 days
  • FLOAT if closing 45 days
  • FLOAT if closing 60 days

To find out what rates are on offer, compare the rates of at least three of the top mortgage lenders before you lock in.

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