Low rates for most loans

Did mortgage rates go up or down on December 13, 2021? You can find out here.

Average mortgage rates as of December 13, 2021 are down for most loans. If you are considering buying a home, the national average mortgage rates can give you an idea of ​​what your loan may be costing you. But your personal rate will be determined by many factors, including your individual financial references such as your credit score.

Check out average mortgage rates to see what a typical buyer might pay today for a fixed or adjustable rate loan:

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

30-year mortgage rates

The 30-year average mortgage rate today stands at 3.344%, down 0.001% from Friday’s average of 3.345%. For every $ 100,000 borrowed at today’s average rate, your total monthly payment of principal and interest would be $ 440. The total interest charge would be $ 58,538 per $ 100,000 borrowed over the term of the loan.

20-year mortgage rates

The 20-year average mortgage rate today stands at 3.069%, down 0.004% from Friday’s average of 3.073%. If you borrow at today’s average rate, your monthly principal and interest payments would be $ 558 for every $ 100,000 borrowed. During the entire repayment period of your loan, you would pay a total interest charge of $ 33,934 for every $ 100,000 borrowed.

Interest rates are lower on this loan than on the 30-year mortgage, and the total costs over time are also lower. It is because of the reduced rate and the reduced length of time that you pay interest. But you will end up with a higher monthly payment due to the fact that you are making a lot less payments. You will have to weigh the trade-offs to decide whether you prefer to pay more each month or more over time.

15-year mortgage rates

The 15-year average mortgage rate today stands at 2.579%, up 0.01% from Friday’s average of 2.569%. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 671 for every $ 100,000 borrowed. During the term of the loan, you would pay a total interest charge of $ 20,693 per $ 100,000 borrowed.

This loan has an even shorter repayment term than the 20 year loan, so the monthly payments are higher despite the very low rate. However, you will pay a lot less over time and get rid of your debt much faster. Take the time to decide which repayment period is best for you.

5/1 arm

The average 5/1 ARM rate is 3.019%, down 0.299% from Friday’s average of 3.318%. Your rate can adjust after five years with this loan. There is a good chance that this will increase, as rates are currently quite low by historical standards. Be aware of this great risk, as rising rates could mean higher monthly payments and total loan costs.

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 still 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 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 seven 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 committing.

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