Current Mortgage Rates -- September 1, 2021: Rates Down for Most Loans

Buying a home? Check out average mortgage rates for fixed and adjustable-rate loans on Sept. 1, 2021.

As September begins, mortgage rates are down for most loans. If you are in the process of buying a home, check out today's average mortgage rates on Sept. 1, 2021 to see what you might pay if you borrow to buy a house:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.081%, down 0.002% from yesterday's average of 3.083%. A mortgage loan at today's average interest rate would cost you $426 per $100,000 borrowed. Total interest costs would be $53,355 per $100,000 in mortgage debt over the life of the loan.

20-year mortgage rates

The average 20-year mortgage rate today is 2.743%, up 0.001% from yesterday's average of 2.742%. If you borrow at today's average rate, you'd have a monthly principal and interest payment of $542 per $100,000 borrowed. During your entire loan repayment period, you'd pay total interest costs of $30,037 per $100,000 borrowed.

You will pay less over time with the 20-year mortgage than the 30-year mortgage because you pay interest for a decade less time. But with a shorter repayment timeline, you'll have higher monthly payments to make.

15-year mortgage rates

The average 15-year mortgage rate today is 2.320%, down 0.007% from yesterday's average of 2.327%. You'd be looking at a principal and interest payment of $658 per $100,000 borrowed at today's average rate. Over the life of the loan, your total interest costs would add up to $18,503 per $100,000 borrowed.

This loan has a very short payoff time, so monthly payments are high even though the rate is lower compared with the 20-year and 30-year loan. However, you will pay interest for such a short time that interest savings over time are significant.

5/1 ARMs

The average 5/1 ARM rate is 3.193%, down 0.021% from yesterday's average of 3.214%. A 5/1 ARM is an adjustable-rate mortgage and the rate begins to adjust after five years. Since rates are relatively low right now, there's a good chance they will go up and your loan will become more expensive. Consider whether you want to take that risk or would prefer a fixed-rate loan option.

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.