October 7, 2021 – Mortgage rates rise – Forbes Advisor
Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.
Now is the right time to lock in a mortgage rate. The average rate on a 30-year fixed mortgage has risen today, but rates are still at historically low levels.
To date, the average rate on a 30-year fixed mortgage is 3.18% with an APR of 3.35%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.43% with an APR of 2.69%. On a 30-year jumbo mortgage, the average rate is 3.14% with an APR of 3.25%. The average rate on a 5/1 ARM is 2.79% with an APR of 3.92%.
Related: Compare current mortgage rates
30 year fixed rate mortgages
The average rate on the 30-year fixed-rate benchmark mortgage climbed to 3.18%. A week ago, the 30-year fixed rate was 3.21%. Today’s rate is below the 52-week high of 3.37%.
The 30-year fixed mortgage APR is 3.35%. At the same date last week, it was 3.38%. Here’s why the APR is important.
At an interest rate of 3.18%, a 30-year fixed mortgage would cost $ 431 per month in principal and interest (taxes and fees not included) per $ 100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the term of the loan will be approximately $ 55,295.
15 year fixed rate mortgages
The average interest rate on the 15-year fixed mortgage is 2.43%. At the same time last week, the 15-year fixed rate mortgage was at 2.49%. Today’s rate is higher than the 52-week low of 2.28%.
The APR on a 15-year fixed rate is 2.69%. This time last week it was 2.75%.
A 15-year fixed rate mortgage of $ 100,000 at the current interest rate of 2.43% will cost $ 664 per month in principal and interest. Over the life of the loan, you would pay $ 19,430 in total interest.
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.14%. Last week, the average rate was 3.20%. 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 3.14% will pay $ 429 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 $ 3,219, and you would pay approximately $ 408,818 in total interest over the life of the loan.
On a 5/1 ARM, the average rate remained at 2.79%. The average rate was 2.79% 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 2.79% will pay $ 410 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:
- House price
- Deposit amount
- Interest rate
- term of the loan
- Taxes, insurance and any HOA fees
How much to save for a house
You might know you need to save enough for a down payment, but it takes more money than that to complete the home buying process. Also, after you buy, you need to furnish your new home and track potential repairs.
Here are six things you can do to save money for a home:
- Advance payment
- Inspection and evaluation
- Closing costs
- Ongoing charges
- Home furnishings
- Repairs and renovations
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.