Mortgage Rates Today – April 22, 2021: Decline in Fixed Rate Lending

Mortgage rates today are lower than yesterday for fixed rate products, even though the 5/1 ARM only went up a notch. Here’s what they look like on April 22, 2021:

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

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30-year mortgage rates

The 30-year average mortgage rate today stands at 3.158%, down 0.011% from yesterday. At today’s rate, you will pay principal and interest of $ 430.00 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 2.928%, down 0.026% from yesterday. At today’s rate, you’ll pay principal and interest of $ 551.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 121.00 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 22,584.00 in interest over your repayment period for every $ 100,000 you borrow.

15-year mortgage rates

The 15-year average mortgage rate today is 2.430%, down 0.002% from yesterday. At today’s rate, you’ll pay principal and interest of $ 663.00 for every $ 100,000 you borrow. Compared to the 30 year loan, your monthly payment will be $ 233.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 35,445.00 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average ARM 5/1 rate is 2.996%, up 0.006% from yesterday. With an ARM 5/1, you lock in the same rate for five years, but from there your rate will adjust once a year. Now it could go up, but it could also go down. Right now, you’ll get a modest reduction on an ARM 5/1 compared to a 30-year fixed loan, but since the savings are limited when you compare the two rates, you might want to stick to a 30-. one-year mortgage that guarantees you the same rate throughout your repayment period.

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 within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are historically quite 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 loan if rates drop before your mortgage closes, and while rates today are quite low, we don’t know if rates are going to go down. increase or decrease over the next few months. As such, it is beneficial to:

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

Mortgage rates have been going down lately, so this might be a good time to apply. This is especially true if you are a good candidate for the loan i.e. you have a high credit rating and a low debt to income ratio. If you are ready to take out a mortgage, get offers from different lenders. This way you will have the opportunity to compare your choices and see which one saves you the most.

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About Brandon A. Hood

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