Rising rates for most loans
As November draws to a close, average mortgage rates are up for most loans, but down for the 15-year fixed rate option. If you’re planning to buy a home in the near future and want to know how much your loan could cost you, check out today’s average mortgage rates for November 29, 2021.
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.345%, up 0.015% from Friday’s average of 3.330%. A mortgage at the current average interest rate would cost you $ 440 per $ 100,000 borrowed. The total interest charge would be $ 58,557 per $ 100,000 borrowed over the term of the loan.
20-year mortgage rates
The 20-year average mortgage rate today stands at 3.044%, up 0.002% from Friday’s average of 3.042%. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 557 for every $ 100,000 borrowed. Over the life of the loan, your total interest expense would be $ 33,633 per $ 100,000 borrowed.
Over time, this loan will cost you less than the 30-year mortgage, but you will have to pay more each month. This is because you won’t be paying interest for that long and paying it at a lower rate, but you will also be making a lot less payments, so each one has to be bigger.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.611%, down 0.015% from Friday’s average of 2.626%. You would consider a principal and interest payment of $ 672 per $ 100,000 borrowed at today’s average rate. Your total interest charges over the term of the loan would equal $ 20,965 per $ 100,000 borrowed.
This loan is cheaper than the 20 or 30 year mortgage, but the monthly payments are higher than for either loan. Again, when you shorten your payback time, there is a trade-off between high monthly payments and low total costs over time.
The average 5/1 ARM rate is 3.029%, up 0.043% from Friday’s average of 2.986%. Because this rate is tied to a financial index, it can adjust once a year – up or down – after the five-year introductory rate ends. You could end up with a loan that has higher monthly payments than you started with and will cost more over time, so be aware of the risks.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a certain interest rate for a specified period of time, usually 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 in 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 closing 15 days
- LOCK if closing 30 days
- FLOAT if closing 45 days
- FLOAT if closing 60 days
To find out what rates are available to you, compare the rates of at least three of the top mortgage lenders before committing.