Current mortgage rates – March 8, 2021: mixed rates, but rising on most loans
While this does not influence our opinions on the products, we may receive compensation from partners whose offers appear here. We are by your side, always. See our full advertiser disclosure.
Image source: Getty Images
If you’re thinking about borrowing to buy a home, check out today’s average interest rates to see how much your loan could cost you.
|Mortgage type||Interest rate of the day|
|30-year fixed mortgage||3.152%|
|20-year fixed mortgage||2.813%|
|15-year fixed mortgage||2.439%|
30-year mortgage rates
The average 30 year mortgage rate today is 3.152%, down 0.005% from Friday’s average of 3.157%. A loan at the current average rate would cost you $ 430 per month in principal and interest for every $ 100,000 you borrow. The total interest charge would be $ 54,745 per $ 100,000 borrowed over the term of the loan.
20-year mortgage rates
The average 20-year mortgage rate today is 2.813%, up 0.005% from Friday’s average of 2.808%. You would consider a principal and interest payment of $ 545 per $ 100,000 borrowed at today’s average rate. Over the life of the loan, the total interest charge would be $ 30,868 per $ 100,000 of mortgage debt.
Loans with shorter repayment terms have higher monthly payments but cost less interest over time. This is the case here with the 20 year mortgage versus the 30 year loan. Although the interest rate is lower, you make payments for a decade less, so the monthly costs are inevitably higher.
15-year mortgage rates
The average 15-year mortgage rate today is 2.439%, up 0.005% from Friday’s average of 2.434%. For every $ 100,000 borrowed at today’s average rate, your total monthly payment of principal and interest would be $ 664. During the entire repayment period of your loan, you would pay a total interest charge of $ 19,506 per $ 100,000 borrowed.
A 15-year loan has a lower interest rate than a 30-year or 20-year loan. This low rate, combined with a short repayment term, means that the total interest charges are extremely low. Of course, since you are making a lot less payments, each is a lot higher.
The average ARM rate 5/1 is 2.865%, up 0.047% from Friday’s average of 2.818%. Although the ARM rate is currently slightly lower than the 30-year fixed rate mortgage rate, ARMs are riskier loans because your rate may adjust upward after the initial five-year period in the period. during which it is fixed. Taking the risk only makes sense if your starting interest rate is significantly lower than fixed rate alternatives.
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 best mortgage lenders before shutting himself in.
A historic opportunity to potentially save thousands on your mortgage
There is a good chance that interest rates will not stay at decades-long 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 them himself for refi (twice!). Click here to find out more and see your rate. 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.
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. Ally is an advertising partner of The Ascent, a Motley Fool company. Christy bieber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.