Some prices increase a little
Thinking of buying a house? Here’s how much a mortgage could cost based on average rates as of October 18, 2021.
Average mortgage rates are stable for a few types of loans today and rising for a few others. These average rates are what a typical borrower would pay. Your personal rate will be determined based on your finances, but average rates can give you a good idea of the cost of a home loan with different types of loans, including fixed rate and adjustable rate loans.
Check out the average mortgage interest rates for Monday, October 18:
30-year mortgage rates
The 30-year average mortgage rate today stands at 3.263%, unchanged from Friday’s average. A loan at the current average rate would cost you $ 436 per month in principal and interest for every $ 100,000 you borrow. During the entire repayment period of your loan, you would pay a total interest charge of $ 56,931 for every $ 100,000 borrowed.
20-year mortgage rates
The 20-year average mortgage rate today stands at 2.925%, unchanged from Friday. If you borrow at today’s average rate, you would have a monthly principal and interest payment of $ 551 for every $ 100,000 borrowed. For every $ 100,000 you borrow at today’s average rate, the total interest charge would be $ 32,204.
Interest is lower over time on this loan than over 20 years, both because of the reduced rate and the fact that you don’t pay interest for that long. This translates to much lower total borrowing costs over time. However, the short repayment time is also the reason for the high monthly payments, which are far more than what you would pay on the 30 year loan.
15-year mortgage rates
The 15-year average mortgage rate today stands at 2.503%, up 0.023% from Friday’s average of 2.480%. For every $ 100,000 borrowed at today’s average rate, your total monthly payment of principal and interest would be $ 667. Your total interest charges over the life of the loan would equal $ 20,047 per $ 100,000 borrowed.
This loan has an even lower interest rate and lower total interest charges than the 20 year loan, but the monthly payments are much higher than with the 20 year or 30 year fixed rate options. Make sure they are affordable before deciding that a 15 year mortgage is the best choice.
The average 5/1 ARM rate is 3.097%, up 0.034% from Friday’s average of 3.063%. After five years, this rate can be adjusted with a financial index. Since it could increase, you run the risk of your total interest charges and monthly payments becoming more expensive.
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.