Current Mortgage Rates -- July 12, 2021: Rates Trend Down

How are mortgage rates trending today? Find out average rates for July 12, 2021.

Mortgage rates fell for all loans today. Check out today's average rates to see the type of interest costs you might face if you're borrowing to purchase a home:

Data source: The Ascent's national mortgage interest rate tracking.

30-year mortgage rates

The average 30-year mortgage rate today is 3.086%, down 0.015% from Friday's average of 3.101%. Borrowing at today's average rate would leave you with a monthly principal and interest payment of $426 per $100,000 in mortgage debt. Total interest costs would add up to $53,452 per $100,000 borrowed over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.886%, down 0.056% from Friday's average of 2.942%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $549 per $100,000 borrowed. The total costs of interest would add up to $31,738 per $100,000 borrowed at today's average rate.

You will reduce total interest costs with this loan compared with the 30-year, both because of the lower interest rate and the fact that you aren't paying interest for as much time. But each monthly payment has to be much higher due to the fact you're making a decade fewer payments.

15-year mortgage rates

The average 15-year mortgage rate today is 2.386%, down 0.017% from Friday's average of 2.403%. For each $100,000 borrowed at today's average rate, your total monthly principal and interest payment would be $661. Over the life of the loan, your total interest costs would add up to $19,058 per $100,000 borrowed.

A 15-year loan has a lower interest rate and costs less over time than either the 20-year or 30-year. With such a short payoff time, though, your monthly payments are much higher, so it's important to make sure they fit in your budget.

5/1 ARMs

The average 5/1 ARM rate is 2.865%, down 0.119% from Friday's average of 2.984%. After five years, this rate could adjust. There is a risk it will go up, making your mortgage costlier. Take this into account when you decide whether an ARM is right for you.

Should I lock my mortgage rate now?

A mortgage rate lock guarantees you a certain interest rate for a specified period of time -- usually 30 days, but you may be able to secure your rate for up to 60 days. You'll generally pay a fee to lock in your mortgage rate, but that way, you're protected in case rates climb between now and when you actually close on your mortgage.

If you plan to close on your home within the next 30 days, then it pays to lock in your mortgage rate based on today's rates -- especially since they're so competitive. But if your closing is more than 30 days away, you may want to choose a floating rate lock instead for what will usually be a higher fee, but one that could save you money in the long run. A floating rate lock lets you secure a lower rate on your mortgage if rates fall prior to your closing, 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 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 rates from at least three of the best mortgage lenders before locking in.