As December draws to a close, check out today’s average mortgage rates to see how they’re performing.
As December draws to a close and a new year approaches, it’s worth taking a look at mortgage rate trends so you can decide if it’s a good time to buy a property.
Check out today’s average mortgage rates for December 27, 2021 to find out if a home loan might be affordable for you:
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.336%, up 0.008% from Friday’s average of 3.328%. If you borrow at today’s average rate, your monthly principal and interest payments would be $ 440 for every $ 100,000 borrowed. The total interest charge would be $ 58,378 per $ 100,000 borrowed over the term of the loan.
20-year mortgage rates
The 20-year average mortgage rate today stands at 3.104%, down 0.001% from Friday’s average of 3.105%. A loan at today’s mid-rate would have a monthly principal and interest payment of $ 560 for every $ 100,000 borrowed. During the entire repayment period of your loan, you would pay a total interest charge of $ 34,356 for every $ 100,000 borrowed.
This loan will have a higher monthly payment than the 30-year loan, despite the fact that it has a lower interest rate. The shorter repayment period means that each monthly payment must be higher to pay off the debt on time. However, the total costs over time are lower due to the low rate and short duration of interest payments.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.529%, down 0.052% from Friday’s average of 2.581%. For every $ 100,000 borrowed at today’s average rate, your monthly principal and interest payment would be $ 668. Your total interest charges over the term of the loan would equal $ 20,268 per $ 100,000 borrowed.
This loan has a lower rate than the 30 year or 20 year loan but of course the very short repayment time means that each monthly payment will be considerably more expensive. Since you pay interest very little time at a low rate, your total costs over the life of the loan are very low.
The average 5/1 ARM rate is 3.070%, down 0.037% from Friday’s average of 3.107%. This is an adjustable rate home loan, which means that the rate can change over time. It is blocked for the first five years, then evolves with a financial index. If the rate adjusts upward, the monthly payments and total loan costs will be higher.
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.