Falling rates for fixed rate loans

If you are in the process of buying a home, you may want to check today’s average mortgage rates to see how they are changing. Seeing what the rates look like for the typical buyer can give you an idea of ​​how much you would pay to borrow when you get a home loan.

Here are the average mortgage rates for Wednesday, September 15:

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

30-year mortgage rates

The 30-year average mortgage rate today stands at 3.081%, down 0.007% from yesterday’s average of 3.088%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $ 422 per $ 100,000 of mortgage debt. You would have a total interest charge of $ 53,355 per $ 100,000 of mortgage debt over the term of the loan.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.749%, down 0.026% from yesterday’s average of 2.775%. You would consider a principal and interest payment of $ 542 per $ 100,000 borrowed at today’s average rate. The total interest charge would be $ 30,108 per $ 100,000 borrowed at today’s average rate.

It is cheaper over time than the 30 year loan because of the lower interest rate and the shorter time during which the interest is paid. But you have to make higher monthly payments than with the 30-year loan because you don’t have as many monthly payments to pay off your loan.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.339%, down 0.019% from yesterday’s average of 2.358%. A mortgage at the current average interest rate would cost you $ 659 per $ 100,000 borrowed. Over the life of the loan, you would pay a total interest charge of $ 18,663 per $ 100,000 borrowed.

You will see even higher monthly payments with this loan than with the 20-year fixed rate loan, due to an even greater reduction in the repayment period. Of course, even if you have to pay a lot while you have the loan, you will be free of debt quickly and owe much less interest over time.

5/1 arm

The average 5/1 ARM rate is 2.993%, up 0.164% from yesterday’s average of 2.829%. Unlike other loans, this one is a variable rate mortgage rather than a fixed rate mortgage. The low starting rate here is guaranteed for only five years and may change afterwards. If it increases, which is very likely, your loan will become more expensive over time.

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 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 you lock in.