Today’s mortgage rates – October 8, 2020: rates are low and not shrinking

Mortgage rates remain very competitive. Should you lock one up now?

Mortgage interest remain quite competitive, with both the 30- and 20-year loan well below 3% and the 15-year loan well below 2.5%. This is what today’s rates look like:

Data source: Tracking the Ascent’s national mortgage interest rates

Mortgage interest on 30 years

The average 30-year mortgage interest today is 2.902%, 0.001 lower than yesterday. At the current rate, you pay principal and interest of $ 416.44 for every $ 100,000 you borrow. That excludes additional costs such as property taxes and homeowners insurance premiums.

Check out The Ascent’s mortgage calculation to see what your monthly payment could be and how much your loan will eventually cost. Also find out how much money you can save by paying a lower interest rate, making a larger down payment or choosing a shorter loan term.

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Mortgage interest on 20 years

The average 20-year mortgage interest today is 2.747%, an increase of 0.012% from yesterday. At the current rate, you pay $ 542.07 in principal and interest for every $ 100,000 you borrow. While your monthly payment will increase by $ 125.63 with a 20-year loan and $ 100,000 versus a 30-year loan for the same amount, over your repayment period you will save $ 19,824.08 in interest for every $ 100,000 you borrows.

Mortgage interest on 15 years

The average Mortgage interest of 15 years today is 2.375%, down 0.013% from yesterday. At the current rate, you pay $ 660.97 in principal and interest for every $ 100,000 you borrow. Compared to the 30-year loan, your monthly payment will be $ 244.53 higher per $ 100,000 in principal on the mortgage. However, your interest savings will total $ 30,946.74 over the life of your repayment period per $ 100,000 in mortgage debt.

5/1 ARMs

The average 5/1 ARM speed is 3.191%, down 0.295% from yesterday. While this represents a pretty big drop for the 5/1 ARM, a 30-year fixed loan makes more sense at this point. The reason? You can count on it for a much lower interest rate. An ARM can be a smart choice if it offers a discounted rate initially, but since you take the risk of your rate being adjusted upwards with an ARM over time, it doesn’t pay to get one if you you cannot get a lower rate for at least the first five years of your loan.

Should I lock my mortgage interest now?

A mortgage interest lock guarantees you a specific interest rate for a period of time – usually 30 days, but you may be able to secure your rate for up to 60 days. You generally pay a fee to record your mortgage interest, but that way you are protected in case the interest rate rises between now and when you take out your home loan.

If you plan to close your home within 30 days, it pays to lock in your mortgage interest based on current rates, especially since it is still extremely low. But if your close is more than 30 days away, you can choose a variable rate lock instead for what will usually be a higher fee, but one that can save you money in the long run. With a variable rate lock, you can get a lower interest rate on your mortgage if interest rates fall before interest rates are closed, and while current rates are still quite attractive, we don’t know if interest rates will rise or fall in the coming months. As such, it pays to:

  • KEY LOCK when you get closer 7 days
  • KEY LOCK when you get closer 15 days
  • KEY LOCK when you get closer 30 days
  • FLOAT when you get closer 45 days
  • FLOAT when you get closer 60 days

If you are ready to get a mortgage based on the current rates, give another person a call lenders to see which offers you qualify for. Each lender sets its own criteria regarding factors such as credit score and debt-income ratio, so the more offers you get, the easier it becomes to compare your choices and make the right decision. Remember that too closing costs can differ from one lender to another, so check those numbers next to the rates you get.


The Ascent team has partnered with industry-leading data provider Optimal Blue to track the seven-day average of daily mortgage interest rates that actual borrowers record across the country. Read more about our methodology for tracking mortgage rates

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