October 14, 2021 – Mortgage rate hike – Forbes Advisor
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The rate on a 30-year fixed mortgage has gone up today. However, rates remain historically low overall.
The average rate on a 30-year fixed mortgage is 3.24%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.46%. The average rate for a 30-year jumbo mortgage is 3.21% and the average rate for a 5/1 ARM is 2.80%.
Related: Compare current mortgage rates
30 year fixed rate mortgages
Today, the average 30-year benchmark fixed mortgage rate has risen to 3.24%. A week ago, the 30-year fixed rate was 3.19%. The 52 week low is 2.83%.
On a 30-year fixed mortgage, the APR is 3.39%, higher than last week. The APR, or annual percentage rate, includes the interest rate on a loan and the cost of financing a loan. This is the overall cost of your loan.
According to the Forbes Advisor mortgage calculator, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay $ 435 per month in principal and interest (taxes and fees not included) at the current interest rate of 3.24 %. The total interest paid over the life of the loan will be approximately $ 56,477.
15 year fixed rate mortgages
The average interest rate on the 15-year fixed mortgage is 2.46%. At the same time last week, the 15-year fixed rate mortgage was at 2.44%. Today’s rate is higher than the 52-week low of 2.28%.
The APR on a 15-year fixed rate is 2.71%. This time last week it was 2.70%.
At the current interest rate of 2.46%, a 15-year fixed rate mortgage would cost about $ 665 per month in principal and interest per $ 100,000. You would pay approximately $ 19,683 in total interest over the life of the loan.
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.21%. Last week, the average rate was 3.15%. 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 3.21% will pay $ 433 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 $ 3,248, and you would pay approximately $ 419,138 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM stands at 2.80%, higher than the 52 week low of 2.83%. Last week, the average rate was 2.79%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.80% will pay $ 411 per month in principal and interest.
How to calculate mortgage payments
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.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment, and other expenses.
To calculate your monthly mortgage payment, here’s what you’ll need:
- The price of the house
- The amount of your deposit
- The interest rate
- The term of the loan
- All taxes, insurance and 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.
Explain the annual percentage rate
The APR, or annual percentage rate, is the overall cost of your loan. It includes interest and finance charges on your loan, accounting for interest, fees, and time.
The APR can help you understand the full cost of a mortgage if you hold onto it for its entire term. Keep in mind that the APR is often higher than the interest rate.