Rates increase for most loans


Mortgage rates are on the rise for most loans today, with the exception of the 20 year fixed rate mortgage. While each borrower’s rate is determined by their credit rating, income, and other financial factors, homebuyers should always keep an eye on mortgage rate trends to get an idea of ​​the cost of their loan.

Here are today’s average mortgage rates for August 9, 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 3.013%, up 0.008% from Friday’s average of 3.005%. At today’s average rate, you would pay $ 422 per month in principal and interest for $ 100,000 borrowed. The total interest charge would be $ 52,030 per $ 100,000 borrowed over the term of the loan.

20-year mortgage rates

The 20-year average mortgage rate today stands at 2.732%, down 0.011% from Friday’s average of 2.743%. A loan at today’s average rate would cost you $ 541 per month in principal and interest for every $ 100,000 you borrow. Your total interest charges over the life of the loan would equal $ 29,907 per $ 100,000 borrowed.

If your goal is to save on interest while maintaining reasonable monthly payments, the 20-year loan might be a good option. The interest charges are lower over time than on the 30-year loan, and the monthly payments are not much higher (especially compared to the 15-year loan).

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.271%, up 0.005% from Friday’s average of 2.266%. For every $ 100,000 borrowed at today’s average rate, your monthly principal and interest payment would be $ 656. You would have a total interest charge of $ 18,091 per $ 100,000 of mortgage debt over the term of the loan.

If you want to maximize interest savings, this loan is the best choice for you. You will pay the least over time with the 15 year loan. But your monthly payments will be much higher than on the 30 or 20 year loan options since you pay off your loan so quickly.

5/1 arm

The average 5/1 ARM rate is 2.915%, up 0.03% from Friday’s average of 2.885%. After five years, this rate could start to adjust. Since rates are still near their all-time lows right now, there’s a good chance they’ll go up. This will increase your monthly payments and make it more expensive to pay off your loan. You may prefer one of the fixed rate loan options rather than going for a variable rate mortgage.

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.


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