Today's Mortgage Rates -- December 23, 2021: 30- and 15-Year Rates Drop, 5/1 ARM Climbs a Lot

Ready to get a mortgage? Here's what you need to know about current rates.

Mortgage rates are mixed today. Rates fell for the 30- and 15-year loan, and rose slightly for the 20-year. But the 5/1 ARM saw a big jump from yesterday. Here's what rates look like on Dec. 23, 2021:

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

30-year mortgage rates

The average 30-year mortgage rate today is 3.324%, down 0.002% from yesterday. At today's rate, you'll pay principal and interest of $439.00 for every $100,000 you borrow. That doesn't include added expenses like property taxes and homeowners insurance premiums.

20-year mortgage rates

The average 20-year mortgage rate today is 3.103%, up 0.002% from yesterday. At today's rate, you'll pay principal and interest of $560.00 for every $100,000 you borrow. Though your monthly payment will go up by $121.00 with a 20-year, $100,000 loan versus a 30-year loan of the same amount, you'll save $23,735.00 in interest over the course of your repayment period for every $100,000 you borrow.

15-year mortgage rates

The average 15-year mortgage rate today is 2.614%, down 0.011% from yesterday. At today's rate, you'll pay principal and interest of $672.00 for every $100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $233.00 higher per $100,000 in mortgage principal. Your interest savings, however, will amount to $37,132.00 over the life of your repayment period per $100,000 of mortgage debt.

5/1 ARMs

The average 5/1 ARM rate is 3.142%, up 0.253% from yesterday. With a 5/1 ARM, you lock in your initial interest rate for five years. After that, your rate could rise or fall -- it depends on market conditions. The risk of a 5/1 ARM is that your rate will climb over time, making your home more expensive to pay off. But if you're buying a starter home you don't think you'll keep for more than a handful of years, then a 5/1 ARM could save you money compared to a 30-year fixed loan.

Should I lock in my mortgage rate now?

A mortgage rate lock guarantees you a specific interest rate for a certain 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 if rates climb between now and when you close on your home loan.

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 pretty attractive, historically speaking. 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 loan if rates fall before you close on your mortgage. While today's rates are pretty 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

If you're ready to get a mortgage, contact different lenders and see what rates they offer you. Each lender sets its own rate, so it's important to compare offers rather than settle on the first one you get. A little research could result in a lot of long-term savings.