Mortgage Rates Today – March 1, 2021: Rates Keep Rising
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On the first day of March, mortgage rates are up slightly for all loans. If you’re planning to buy a new home and need a mortgage to pay it off, here’s what you need to know about average mortgage rates as of March 1, 2021.
|Mortgage type||Interest rate of the day|
|30-year fixed mortgage||3.128%|
|20-year fixed mortgage||2.817%|
|15-year fixed mortgage||2.451%|
30-year mortgage rates
The average 30 year mortgage rate today is 3.128%, up 0.038% from Friday’s average of 3.090%. A loan at the current average rate would cost you $ 429 per month in principal and interest for every $ 100,000 you borrow. The total interest charge would be $ 54,274 per $ 100,000 borrowed over the term of the loan.
20-year mortgage rates
The average 20-year mortgage rate today is 2.817%, up 0.025% from Friday’s average of 2.792%. Borrowing at today’s average rate would leave you with a monthly principal and interest payment of $ 545 per $ 100,000 of mortgage debt. Over the life of the loan, your total interest charges would be $ 30,916 per $ 100,000 borrowed.
Loans with shorter repayment terms have higher monthly payments but lower total interest charges. You can see this by comparing the 20 year loan versus the 30 year loan. Although the interest rates are similar, the 20-year option provides significant savings on the total interest paid over time, but each monthly payment is higher.
15-year mortgage rates
The average 15-year mortgage rate today is 2.451%, up 0.026% from Friday’s average of 2.425%. A loan at today’s mid-rate would have a monthly principal and interest payment of $ 664 for every $ 100,000 borrowed. Your total interest charges over the life of the loan would equal $ 19,607 per $ 100,000 borrowed.
With its shortened repayment period, the 15 year loan has higher monthly payments than the 30 or 20 year loan despite a much lower interest rate. The total interest savings, however, are substantial over time.
The average ARM rate 5/1 is 3.353%, up 0.092% from Friday’s average of 3.261%. The rates on a variable rate mortgage will begin to adjust after the initial fixed rate period ends. It may be worth taking the risk of adjusting them up if you can qualify for a loan at a much lower starting interest rate than a fixed rate alternative. However, this is not currently the case.
Since the rates are so low right now and will most likely adjust upwards and you cannot save by choosing to start with an ARM 5/1 on a 30 year fixed rate loan, this is not a good option today.
Should I lock in my mortgage rate now?
A mortgage rate freeze guarantees you a certain interest rate for a specified period of time – typically 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 in 7 days
- LOCK if closing in 15 days
- LOCK if closing in 30 days
- FLOAT if closing in 45 days
- FLOAT if closing in 60 days
To find out what rates are available to you, compare the rates of at least three of the best mortgage lenders before shutting himself in.
A historic opportunity to potentially save thousands on your mortgage
There is a good chance that interest rates will not stay at multi-decade lows any 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 to buy a new home.
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