Rising rates for most loans
How are mortgage rates looking in mid-December? Check out today’s average rates here.
As we approach mid-December, average mortgage rates are on the rise for most loans, with the exception of the 15-year mortgage. While you may be offered a personalized rate based on your financial information, national average rates will influence how much your mortgage will cost you.
See the average mortgage rates for December 15, 2021 for the current rate trend.
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.344%, up 0.002% from yesterday’s average of 3.342%. At today’s average rate, you would pay $ 440 per month in principal and interest for $ 100,000 borrowed. Over the life of the loan, your total interest charges would be $ 58,538 for every $ 100,000 borrowed.
20-year mortgage rates
The 20-year average mortgage rate today stands at 3.072%, up 0.009% from yesterday’s average of 3.063%. A loan at today’s mid-rate would carry a monthly principal and interest payment of $ 558 for every $ 100,000 borrowed. You would have a total interest cost of $ 33,970 per $ 100,000 of mortgage debt over the term of the loan.
This loan costs much less over time than the 30-year loan, but the lower total cost comes at the cost of higher monthly payments. If you shorten your loan repayment period, you won’t pay interest for that long. But you also need to make higher payments each month to pay off your debt on time.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.576%, down 0.018% from yesterday’s average of 2.594%. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 670 for every $ 100,000 borrowed. During the entire repayment period of your loan, you would pay a total interest charge of $ 20,667 for every $ 100,000 borrowed.
Although the monthly payments are much higher on the 15 year loan than on the 30 or 20 year loan, the total repayment costs are lower. You will need to consider the trade-off between high monthly payments and low total costs or paying more over time but less each month.
The average 5/1 ARM rate is 2.716%, down 0.018% from yesterday’s average of 2.742%. An ARM is a variable rate mortgage. Rates can change after five years and are tied to a financial index that dictates the direction in which they move. There is a good chance that the rates will go up, which could increase the total cost of the loan over time and also increase your monthly payments.
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 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.