Current Mortgage Rates — February 26, 2021: Rates Up on Fixed-Rate Loans

On February 26, 2021, fixed-rate mortgage rates experienced an increase. Although rates reached record lows several times last year, they have been gradually rising recently, though they remain competitive. Take a look at today’s average mortgage rates to observe their current trend.

MORTGAGE TYPE	TODAY’S INTEREST RATE
30-year fixed mortgage	3.090%
20-year fixed mortgage	2.792%
15-year fixed mortgage	2.425%
5/1 ARM	3.261%
Data source: The Ascent’s national mortgage interest rate tracking.

30-year mortgage rates: The current average 30-year mortgage rate stands at 3.090%, which is a 0.047% increase from yesterday’s average of 3.043%. For every $100,000 borrowed at this average rate, your monthly principal and interest payment would amount to $426. Over the life of the loan, total interest costs would accumulate to $53,530 for every $100,000 borrowed. 20-year mortgage rates: Today’s average 20-year mortgage rate is 2.792%, marking a 0.041% increase from yesterday’s average of 2.751%. At this average rate, your monthly principal and interest payment for every $100,000 in mortgage debt would be $544. Throughout the entire loan repayment period, you would incur total interest costs of $30,618 for every $100,000 borrowed. 15-year mortgage rates: The average 15-year mortgage rate today is 2.425%, up 0.043% from yesterday’s average of 2.382%. At today’s average rate, you would make monthly principal and interest payments of $553 for each $100,000 borrowed. Over the life of the loan, total interest costs would amount to $19,388 for every $100,000 in mortgage debt. 5/1 ARMs: The average 5/1 ARM rate is 3.261%, down 0.055% from yesterday’s average of 3.316%. Opting for an ARM makes sense only if the initial interest rate is significantly lower than the rate offered by fixed-rate loans. However, this is not the case currently. In fact, the starting rate for ARMs is higher than that for 30-year fixed-rate loans. Since ARM rates are likely to adjust upward once they start adjusting, it may not be advisable to rely on an adjustable-rate mortgage at this time. Should I lock my mortgage rate now? A mortgage rate lock guarantees a specific interest rate for a predetermined period, typically 30 days, although you may have the option to secure your rate for up to 60 days. Locking in your mortgage rate generally involves a fee, but it offers protection in case rates rise before your mortgage closing. If you plan to close on your home within the next 30 days, it’s prudent to lock in your mortgage rate based on today’s competitive rates. However, if your closing is more than 30 days away, you might consider a floating rate lock for a higher fee. This type of lock allows you to secure a lower mortgage rate if rates decrease before your closing. Given the current low rates and the uncertainty of future rate movements, it’s advisable to:

• LOCK if you plan to close in 7 days
• LOCK if you plan to close in 15 days
• LOCK if you plan to close in 30 days
• FLOAT if you plan to close in 45 days
• FLOAT if you plan to close in 60 days

To determine the rates available to you, compare offers from at least three of the top mortgage lenders before finalizing your decision. A golden opportunity to potentially save thousands on your mortgage: Interest rates are unlikely to remain at multi-decade lows for an extended period. Therefore, taking action now is crucial, whether you’re considering refinancing to lower your mortgage payment or embarking on a new home purchase. Our expert recommends this company to secure a low rate. In fact, he used their services for refinancing (twice!). [Click here to learn more and find your rate.](insert link) While our opinions on products remain unbiased, we may receive compensation from partners whose offers are featured here. We’re committed to serving your best interests. You can find our complete advertiser disclosure here. The Motley Fool owns and recommends MasterCard and Visa, and recommends American Express. We uphold the Golden Rule, which is why our editorial opinions are solely ours and have not been reviewed, endorsed, or approved by our partner advertisers. Please note that The Ascent does not cover all available offers on the market. The editorial content created by The Ascent is separate from that of The Motley Fool and is developed by a distinct analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.

Get back to Seikom News 🤓