Mortgage Rates Today – February 22, 2021: Rate Rising on Fixed Rate Loans


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As the end of February approaches, average mortgage rates rose a little today for fixed rate loans. Although they are still near their historic lows, rates have trended upward recently. Borrowers can consider locking in their loan while interest rates remain competitive. Here’s what you need to know about average mortgage rates on February 22, 2021.

Mortgage type Interest rate of the day
30-year fixed mortgage 2.955%
20-year fixed mortgage 2.681%
15-year fixed mortgage 2.305%
5/1 ARM 2.808%

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

30-year mortgage rates

The 30-year average mortgage rate today stands at 2.955%, up 0.031% from Friday’s average of 2.924%. A loan at the current average rate would cost you $ 419 per month in principal and interest for every $ 100,000 you borrow. You will also have to pay insurance and property taxes. The total interest charge would be $ 50,905 per $ 100,000 borrowed over the term of the loan.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.681%, up 0.026% from Friday’s average of 2.655%. If you borrow at today’s average rate, your monthly principal and interest payments would be $ 539 for every $ 100,000 borrowed. Your total interest charges over the term of the loan would equal $ 29,304 per $ 100,000 borrowed.

When you shorten your repayment term by a decade compared to the 30-year loan, you will have to commit to higher monthly payments. Of course, since you are paying interest for 10 years less, you can see that the total interest charge is considerably lower. This means your mortgage costs you less over time, even if you have to prepare for higher payments during your 20-year repayment schedule.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.305%, up 0.009% from Friday’s average of 2.296%. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 658 for every $ 100,000 borrowed. During the entire repayment period of your loan, you would pay a total interest charge of $ 18,377 for every $ 100,000 borrowed.

With an even shorter payment term, the monthly costs are higher with the 15-year loan than with the 20 or 30-year alternative. The total amount of interest you save over time is considerable, however, so you may find opting for these higher payments worth it if you can find them within your budget.

5/1 arm

The average 5/1 ARM rate is 2.808%, down 0.057% from Friday’s average of 2.865%. This initial starting rate is only locked in for the first five years with a variable rate mortgage. After that, it might start to adjust once a year, up or down.

In recent months, the starting rate of ARM 5/1 has been higher than the rate of fixed rate alternatives. Although this is no longer the case, the difference between the initial rates is not enough to take the risk that your interest charges will increase over time. This is especially true as rates will almost certainly rise once they start to adjust, as they are still so close to all-time lows 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, 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 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 committing.

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 for 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 included advertisers. The Ascent does not cover all the offers on the market. Editorial content for The Ascent is separate from editorial content for The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy. The Author and / or The Motley Fool may have an interest in the companies mentioned.

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


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