December 27, 2021 – Mortgage rates remain stable – Forbes Advisor
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Now is the right time to lock in a mortgage rate. The average rate on a 30-year fixed rate mortgage has remained the same today, keeping rates at historically low levels.
The average rate for a 30-year fixed mortgage is 3.23%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.53%. The average rate for a 30 year jumbo mortgage is 3.18% and the average rate for a 5/1 ARM is 2.74%.
Related: Compare current mortgage rates
30-year fixed rate mortgage rates
The average 30-year fixed-rate benchmark mortgage rate remained at 3.23%. At the same time last week, the 30-year fixed rate was 3.25%. The 52 week low is 2.83%.
The APR on a 30-year fixed rate is 3.37%. This time last week it was 3.38%. The APR is the overall cost of your loan.
At the current interest rate of 3.23%, borrowers with a 30-year, $ 100,000 fixed-rate mortgage will pay $ 434 per month in principal and interest (taxes and fees not included), mortgage calculator says Forbes Advisor. In total interest, you would pay $ 56,279 over the life of the loan.
15-year mortgage interest rates
Today, the 15-year fixed mortgage rate is 2.53%, the same as it was at the same time yesterday. Last week it was 2.54%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed rate, the APR is 2.74%. Last week it was 2.74%.
A 15-year, $ 100,000 fixed rate mortgage with a current interest rate of 2.53% will cost $ 668 per month in principal and interest. Over the life of the loan, you would pay $ 20,276 in total interest.
Giant mortgage rates
On a 30-year jumbo, the average interest rate is 3.18%, lower than it was on this date last week. The average rate was 3.19% at the same date last week. 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 a current interest rate of 3.18% will pay 431 per month in principal and interest in every $ 100,000. This means that on a $ 750,000 loan, the monthly principal and interest payment would be approximately $ 3,235, and you would pay approximately $ 414,709 in total interest over the life of the loan.
Variable rate mortgage rates 5/1
On a 5/1 ARM, the average rate remained at 2.74%. The average rate was 2.74% last week. Today’s rate is currently below the 52-week high of 3.43%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.74% will pay 408 per month in principal and interest.
Calculate your mortgage payment
For much of the population, buying a home means working with a mortgage lender to secure a mortgage. It can be difficult to determine how much you can afford and what you are paying for.
To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price, and other factors.
Here’s what you’ll need to calculate your monthly mortgage payment:
- Interest rate
- Deposit amount
- House price
- term of the loan
- HOA fees
What you can afford depends on a number of factors including your income, debt, debt-to-income ratio, down payment, and credit rating.
You should also factor in closing costs, property taxes, insurance costs, and routine maintenance expenses.
The type of loan you choose can also affect the amount of home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited to your particular situation.
Why the APR is important
The APR, or Annual Percentage Rate, is a calculation that includes both the interest rate on a loan and the carrying charges on a loan, expressed as an annual cost over the life of the loan. In other words, it is the total cost of credit. APR takes into account interest, fees and time.
The APR can help you understand the full cost of a mortgage if you keep it for the duration. Keep in mind that the APR is often higher than the interest rate.