Rising rates for all fixed rate loans

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Mortgage rates have an impact on your loan costs. Check out today’s average mortgage rates to see how much different loans would cost each month and over time.

On January 17, 2022, mortgage rates are up for all fixed rate loans and down for the 5/1 ARM. If you’re considering buying a home, take a look at today’s average rates to get an idea of ​​where loan interest rates are trending and what your home could cost if you qualify. at the typical rate offered to an average buyer.

Type of mortgage

Today’s interest rate

30-year fixed mortgage

3.651%

20-year fixed mortgage

3.336%

15-year fixed mortgage

2.852%

ARM 5/1

3.009%

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.651%, up 0.018% from Friday’s average of 3.633%. At today’s average rate, you would pay $458 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, your total interest costs would be $64,706 for every $100,000 borrowed.

20-year mortgage rates

The average 20-year mortgage rate today is 3.336%, up 0.035% from Friday’s average of 3.301%. If you borrow at today’s average rate, your monthly principal and interest payment would be $572 for every $100,000 borrowed. Your total interest costs over the term of the loan would equal $37,176 for every $100,000 borrowed.

If you want to save more over time on your mortgage repayment costs, this loan may be a better option than the 30-year loan. Your loan won’t cost as much because the lower interest rate and shorter interest payment time will lower your interest costs. The price of lower interest, however, is higher monthly payments as you pay down your debt.

15-year mortgage rates

The average 15-year mortgage rate today is 2.852%, up 0.033% from Friday’s average of 2.819%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $683 per $100,000 of mortgage debt. For every $100,000 you borrow at the current average rate, the total interest costs would be $23,027.

The monthly payments for the 15-year loan are much higher than those for the 30 or 20-year loan because you have considerably reduced your payment term. But you will save significantly over your entire repayment period due to the low rate and very short repayment time. Be sure to weigh the pros and cons of a 15-year loan before committing to one.

RMA 5/1

The average ARM 5/1 rate is 3.009%, down 0.181% from Friday’s average of 3.190%. This is an adjustable rate loan, so it may change after the initial five-year period when locked in. If your rate goes up, the monthly payments and total costs also go up, so this loan has major risks that other fixed-rate loan options don’t.

Should I lock in my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a set period of time – usually 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 between now and when you close out your mortgage.

If you’re planning to close on your home in the next 30 days, it pays to lock your mortgage rate to today’s rates, especially since they’re still quite competitive from a historical perspective. But if your close is more than 30 days away, you might want to choose a variable rate lock instead for what will usually be higher fees, 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 today’s rates are still quite low, we don’t know if rates will go up or down. over the next few months. As such, it pays for:

  • 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 best mortgage lenders before committing.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.

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