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Current mortgage rates – October 5, 2021: most rates go down


Mortgage rates are for the most part lower today than yesterday, with only the 20-year loan increasing a notch. Here’s what they look like on October 5, 2021:

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

6 simple tips to get a 1.75% mortgage rate

Secure access to The Ascent’s free guide on how to get the lowest mortgage rate when buying your new home or refinancing. Rates are still at their lowest for decades, so act today to avoid missing out.

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30-year mortgage rates

The 30-year average mortgage rate today is 3.206%, down 0.003% from yesterday. At today’s rate, you’ll pay principal and interest of $ 433.00 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 2.902%, up 0.011% from yesterday. At today’s rate, you will pay principal and interest of $ 550.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 117.00 with a loan of $ 100,000 over 20 years compared to a loan of the same amount over 30 years, you will save $ 23,813.00 in interest over your repayment period for every $ 100,000 you borrow.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.421%, down 0.005% 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 $ 230.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 36,387.00 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average 5/1 ARM rate is 3.101%, down 0.045% from yesterday. An ARM 5/1 allows you to lock in the same interest rate for five years, but beyond that point your rate will adjust once a year. Now it can go down, saving you money, or it can go up, costing you more. If you can make a higher monthly payment, it might be beneficial to lock in a 15- or 20-year fixed loan today. Thus, your interest rate will be guaranteed for the duration of 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 in the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are very attractive, historically speaking. 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. While the rates today are quite low, we don’t know if the rates will go up or down in 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

If you are ready to apply for a mortgage, contact a number of lenders to find out the rates and closing costs they are willing to offer you. And if you’re not happy with these offers, take a look at your credit score. The higher this number, the more likely you are to get a competitive interest rate on a mortgage, so you may need to work to increase your score before applying for a home loan.


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