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


Mortgage rates are mostly down from yesterday. Here’s what they look like on August 5, 2021:

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

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30-year mortgage rates

The 30-year average mortgage rate today is 3.004%, down 0.003% from yesterday. At today’s rate, you’ll pay principal and interest of $ 422.00 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 2.746%, up 0.011% from yesterday. At today’s rate, you’ll pay principal and interest of $ 542.00 for every $ 100,000 you borrow. Although your monthly payment increases by $ 120.00 with a 20-year loan of $ 100,000 compared to a 30-year loan of the same amount, you will save $ 21,682.00 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 2.259%, down 0.014% from yesterday. At today’s rate, you’ll pay principal and interest of $ 655.00 for every $ 100,000 you borrow. Compared to the 30 year loan, your monthly payment will be $ 233.00 higher for every $ 100,000 of mortgage principal. However, your interest savings will amount to $ 33,812.00 over the duration of your repayment period per $ 100,000 of mortgage debt.

5/1 arm

The average 5/1 ARM rate is 2.861%, down 0.046% from yesterday. If you buy an ARM 5/1, you’re guaranteed the same interest rate for five years, but after that five-year period ends, your rate may go up. While a 5/1 ARM will initially give you lower monthly payments than a 30-year mortgage, over time you could find yourself stuck paying more for your home, and therefore a 30-year fixed mortgage. years could make a lot more sense. Plus, if you can sway the higher monthly payments that come with a 20-year loan, you’ll actually get a lower interest rate upfront that’s guaranteed to last.

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 within the next 30 days, it pays to lock in your mortgage rate based on today’s rates, especially since they are very attractive historically. 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 rates today are extremely low, we don’t know if rates will go up or down in the next few months. As such, it is beneficial to:

  • LOCK if the closure 7 days
  • LOCK if the closure 15 days
  • LOCK if the closure 30 days
  • FLOAT if the closure 45 days
  • FLOAT if the closure 60 days

If you are ready to get a mortgage, contact different lenders to find out what rates they are paying. And if you’re not happy with the rates you’re offered, see if there’s a chance to increase your credit score and reapply in a few months. The higher your score, the lower the interest rate you are likely to hook, and it could save you a lot of money when paying off your home.


Julio V. Miller

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