August 5, 2021 — Mortgage Rates Hit Near Rock Bottom Lows – Forbes Advisor
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Mortgage rates fell today. If you’re interested in buying a home or refinancing your current home, you still have a shot at locking in a historically low rate.
As of today, the average rate on a 30-year fixed mortgage is 3.00% with an APR of 3.24%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.28% with an APR of 2.63%. On a 30-year jumbo mortgage, the average rate is 2.97% with an APR of 3.10%. The average rate on a 5/1 ARM is 2.79% with an APR of 3.90%.
30-year Fixed-rate Mortgages
The average rate for the benchmark 30-year fixed-rate mortgage slipped to 3.00%. Last week, the 30-year fixed was 3.04%. The 52-week low is 2.83%.
The APR on a 30-year fixed is 3.24%. This time last week, it was 3.28%. APR is the all-in cost of your loan.
At an interest rate of 3.00%, a 30-year fixed mortgage would cost $ 422 per month in principal and interest (taxes and fees not included) per $ 100,000, according to the Forbes Advisor mortgage calculator. You’d pay approximately $ 51,777 in total interest over the life of the loan.
15-year Fixed-rate Mortgages
Today, the 15-year fixed mortgage rate is 2.28%, the same as it was one day ago. Last week, it was 2.34%.
The APR on a 15-year fixed is 2.63%. This time last week, it was 2.66%.
With an interest rate of 2.28%, you would pay 656 per month in principal and interest for every $ 100,000 borrowed. Over the life of the loan, you would pay $ 18,167 in total interest.
The average interest rate on the 30-year fixed-rate jumbo mortgage sits at 2.97%. Last week, the average rate was 3.02%. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 2.85%.
Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 2.97% will pay $ 420 per month in principal and interest per $ 100,000. That means that on a $ 750,000 loan, the monthly principal and interest payment would be around $ 3,150, and you’d pay approximately $ 383,967 in total interest over the life of the loan.
On a 5/1 ARM, the average rate inched down to 2.79% from 2.80% yesterday. The average rate was 2.78% last week. Today’s rate is currently lower than the 52-week high of 3.43.
Borrowers with a 5/1 ARM of $ 100,000 with today’s interest rate of 2.79% will pay $ 410 per month in principal and interest.
How to Calculate Mortgage Payments
If you can’t or don’t want to pay cash, mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’ll likely pay each month to see if it fits into your budget.
You can use a mortgage calculator to estimate your monthly mortgage payment based on factors including your interest rate, purchase price and down payment.
Gather these data points to calculate your monthly mortgage payment:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Taxes, insurance and any HOA fees
What you can afford depends on a number of factors, including your income, debt, debt-to-income ratio, down payment and credit score.
You also want to consider closing costs, property taxes, insurance costs and ongoing maintenance expenses.
The type of loan you choose can also affect how much house you can afford. When shopping for a loan, think about whether a conventional mortgage, FHA loan, VA loan or USDA loan is best for your particular situation.
Explaining Annual Percentage Yield
The APR, or annual percentage rate, is the all-in cost of your loan. It includes your loan’s interest and finance charges, accounting for interest, fees and time.
APR is important because it can help you understand the complete cost of your home loan if you decide to keep it for the entire term.