Current Mortgage Rates – February 15, 2021: Interest Rates on Fixed Rate Loans Rise


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As mid-February approaches, mortgage rates edged up today for fixed rate lending options. If you’re shopping for a home loan, here’s what you need to know about average mortgage rates as of February 15, 2021.

Mortgage type Interest rate of the day
30-year fixed mortgage 2.835%
20-year fixed mortgage 2.593%
15-year fixed mortgage 2.235%
5/1 ARM 3.210%

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

30-year mortgage rates

The 30-year average mortgage rate today stands at 2.835%, up 0.008% from Friday’s average of 2.827%. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 413 for every $ 100,000 borrowed. Over the life of the loan, your total interest charges would be $ 48,593 per $ 100,000 borrowed.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.593%, up 0.033% from Friday’s average of 2.560%. For every $ 100,000 borrowed at today’s average rate, your total monthly payment of principal and interest would be $ 534. The total interest charge would be $ 28,267 per $ 100,000 borrowed at today’s average rate.

As you can see, you pay more per month for the 20 year fixed rate loan than you do for the 30 year fixed rate loan. The shorter repayment period explains the higher monthly payment. This is also the reason why the total interest is so much lower, since you pay interest much less for a long time.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.235%, up 0.006% from Friday’s average of 2.229%. At today’s average rate, you would pay $ 654 per month in principal and interest for $ 100,000 borrowed. For every $ 100,000 you borrow at today’s average rate, the total interest charge would be $ 17,790.

A 15-year mortgage means paying interest for even less than the 20- or 30-year loan options. Of course, since you significantly reduce your repayment period, your monthly mortgage payments are higher even if the total costs over time are lower.

5/1 arm

The average 5/1 ARM rate is 3.210%, down 0.054% from Friday’s average of 3.264%. This rate is higher than the average interest rate for a 30-year fixed rate mortgage. Since rates start to rise and will almost inevitably rise when they start to adjust, it is not a good idea to take out this type of loan right now.

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 in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

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

A historic opportunity to potentially save thousands on your mortgage

There is a good chance that interest rates will not stay at multi-decade lows any longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger to buy a new home.

Our expert recommends this company to find a low rate – and in fact he used it himself for refi (twice!). Click here to find out more and see your price. While this does not influence our opinions on the products, we do receive compensation from partners whose offers appear here. We are by your side, always. See our full advertiser disclosure here.

The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We strongly believe in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the advertisers included. The Ascent does not cover all the offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


About Brandon A. Hood

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