July 19, 2022—Rate Cut – Forbes Advisor
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Today’s average rate on a 30-year fixed mortgage is 5.82%, down 0.02% from the previous week.
Borrowers may be able to save on interest charges by switching to a 15-year fixed rate mortgage, as they generally have a lower rate than a 30-year fixed rate mortgage. The average rate for a 15-year fixed mortgage is 4.95%. However, a 15-year mortgage means you pay off the house in half the time of a 30-year term, so your monthly payments will be higher.
Related: Compare current mortgage rates
30-year fixed mortgage rates
The average rate fell on a 30-year fixed mortgage, slipping to 5.82% from 5.88% yesterday. Today’s rate is below the 52-week high of 6.11%.
The 30-year fixed mortgage APR is 5.83%. At the same time last week, it was 5.85%. Here’s why APR is important.
According to the Forbes Advisor Mortgage Calculator, borrowers with a $100,000 30-year fixed rate mortgage will pay $588 per month in principal and interest (taxes and fees not included) at the current interest rate of 5.82% . You would pay approximately $50,149 in total interest over the life of the loan.
15-year fixed mortgage rates
The average interest rate on the 15-year fixed mortgage is 4.95%. At this time last week, the 15-year fixed rate mortgage was at 4.97%. Today’s rate is above the 52-week low of 4.60%.
On a 15-year fixed term, the APR is 4.98%. Last week it was 4.99%.
With an interest rate of 4.95%, you would pay $534 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $41,874 in total interest.
Giant Mortgage Rates
On a 30-year jumbo, the average interest rate sits at 5.81%, lower than this time last week. The average rate was 5.87% at the same time last week. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 6.11%.
Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 5.81% will pay $587 per month in principal and interest per $100,000. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $587, and you would pay approximately $50,053 in total interest over the term of the loan.
5/1 Adjustable Rate Mortgage Rates
On an ARM 5/1, the average rate fell to 4.26% from 4.27% yesterday. The average rate was 4.26% last week. Today’s rate is currently below the 52-week high of 4.32%.
Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 4.26% will pay $493 per month in principal and interest.
How to calculate mortgage payments
For a large portion 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.
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.
To calculate your monthly mortgage payment, here is what you will need:
- The price of the house
- The amount of your deposit
- The interest rate
- The term of the loan
- All taxes, insurance and all HOA fees
Determine how much house you can afford
How much home you can afford depends on a number of factors, including your income and your debt.
Here are some basic factors that go into what you can afford:
- Your income
- Your debt
- Your debt ratio, or DTI
- Your deposit
- Your credit score
Why APR Matters
The annual percentage rate, or APR, takes into account interest, fees and time. This is the total cost of your loan and includes both the interest rate of the loan and its finance charges.
The APR can help you understand the total cost of a mortgage if you keep it for the full term. Keep in mind that the APR is often higher than the interest rate.