September 17, 2021 – Mortgage rates continue to fall – Forbes Advisor
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Mortgage rates have gone down today. If you’re interested in buying a home or refinancing your current home, you still have a chance to secure a historically low rate.
To date, the average rate on a 30-year fixed mortgage is 3.04% with an APR of 3.23%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.32% with an APR of 2.61%. On a 30-year jumbo mortgage, the average rate is 3.01% with an APR of 3.12%. 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 fell on a 30-year fixed mortgage, slipping to 3.04% from 3.05% yesterday. The 52 week low is 2.83%.
The 30-year fixed mortgage APR is 3.23%. At the same date last week, it was 3.23%. Here’s why the APR is important.
At an interest rate of 3.04%, a 30-year fixed mortgage would cost $ 424 per month in principal and interest (taxes and fees not included) per $ 100,000, according to the Forbes Advisor mortgage calculator. You would pay approximately $ 52,555 in total interest over the life of the loan.
15 year fixed rate mortgages
Today, the 15-year fixed mortgage rate is 2.32%, lower than it was at this time yesterday. Last week it was 2.33%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed rate, the APR is 2.61%. Last week it was 2.62%.
A 15-year, $ 100,000 fixed rate mortgage with a current interest rate of 2.32% will cost $ 658 per month in principal and interest. Over the life of the loan, you would pay $ 18,503 in total interest.
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.01%. Last week, the average rate was 3.02%. 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 3.01% will pay $ 422 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 $ 3,166, and you would pay approximately $ 389,788 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM stands at 2.79%, higher than the 52 week low of 2.83%. Last week, the average rate was 2.78%.
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.
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 are paying and what you can actually afford.
You can use a mortgage calculator to estimate your monthly mortgage payment based on factors such as your interest rate, purchase price, and down payment.
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
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
What is an APR and why is it important?
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 on the loan and its finance charges.
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.