January 7, 2022 — Rates Rose – Forbes Advisor
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For anyone in the market to buy or refinance a home, now is a good time to lock in a low rate. Mortgage rates have gone up today, but overall rates are at historically low levels.
To date, the average rate on a 30-year fixed mortgage is 3.46% with an APR of 3.57%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.73% with an APR of 2.92%. On a 30-year jumbo mortgage, the average rate is 3.45% with an APR of 3.54%. The average rate on a 5/1 MRA is 2.73% with an APR of 4.07%.
Related: Compare current mortgage rates
30-year fixed rate mortgage rates
Today, the average 30-year benchmark fixed mortgage rate has risen to 3.46%. A week ago, the 30-year fixed rate was 3.29%. The 52 week low is 2.83%.
On a 30-year fixed mortgage, the APR is 3.57%, higher than last week. The APR, or annual percentage rate, includes the interest rate on a loan and the carrying charges on a loan. This is the overall cost of your loan.
At the current interest rate of 3.46%, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay 447 per month in principal and interest (taxes and fees not included), says mortgage calculator Forbes Advisor. You would pay around $ 60,853 in total interest over the life of the loan.
15-year fixed rate mortgage rates
The average interest rate on the 15-year fixed mortgage is 2.73%. At the same time last week, the 15-year fixed rate mortgage was at 2.57%. Today’s rate is higher than the 52-week low of 2.28%.
The APR on a 15-year fixed rate is 2.92%. This time last week it was 2.78%.
At the current interest rate of 2.73%, a 15-year fixed rate mortgage would cost about 678 per month in principal and interest per $ 100,000. You would pay approximately $ 21,981 in total interest over the life of the loan.
Giant mortgage rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.45%. Last week, the average rate was 3.26%. 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 3.45% will pay 446 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 $ 3,347, and you would pay approximately $ 454,897 in total interest over the life of the loan.
ARM rate 5/1
The average interest rate on a 5/1 ARM is 2.73%, higher than the 52 week low of 2.83%. Last week, the average rate was 2.74%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.73% will pay 407 per month in principal and interest.
Calculate your mortgage payment
Mortgages and mortgage lenders are often a necessary part of buying a home, but it can be difficult to figure out what you’re paying and what you can actually afford.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment, and other expenses.
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.
What is an APR and why is it 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 is important because it can help you understand the total cost of your mortgage if you decide to keep it for the duration.