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Mortgage rates fell today. If you are interested in buying a home or refinancing your current home, you still have the option to secure a historically low interest rate.
According to Bankrate.com, the average interest rate on a 30-year fixed-rate mortgage is 3.00% with an APR of 3.24%. The 15-year fixed-rate mortgage has an average interest rate of 2.28% with an APR of 2.63%. For a 30-year jumbo mortgage, the average interest rate is 2.97% with an APR of 3.10%. The average rate on a 5/1 ARM is 2.79% with an APR of 3.90%.
30-year fixed-rate mortgages
The average interest rate for the benchmark 30-year fixed-rate mortgage decreased to 3.00%. Last week, the 30-year fixed value was 3.04%. The 52-week low is 2.83%.
The effective annual interest rate for a 30-year term is 3.24%. Last week at this time it was 3.28%. APR is the total cost of your loan.
At a 3.00% interest rate, a 30-year fixed-rate mortgage would cost $ 422 per month in principal and interest (excluding taxes and fees) per $ 100,000, according to the Forbes advisor Mortgage calculator. You would pay a total of approximately $ 51,777 in interest over the life of the loan.
15-year fixed-rate mortgages
Today the interest rate on the 15-year fixed-rate mortgage is 2.28%, just as it was a day ago. Last week it was 2.34%.
The effective annual interest rate for a 15-year term is 2.63%. Last week at this time it was 2.66%.
At 2.28% interest, you would pay 656 per month in principal and interest for every $ 100,000 borrowed. Over the life of the loan, you would pay a total of $ 18,167 in interest.
The average interest rate on the 30-year fixed rate jumbo mortgage is 2.97%. Last week the average rate was 3.02%. The 30-year fixed interest rate on a jumbo mortgage is currently above the 52-week low of 2.85%.
Borrowers on a 30-year jumbo fixed-rate mortgage with a current rate of 2.97% pay $ 420 per month in principal and interest per $ 100,000. That means that on a $ 750,000 loan, the monthly principal and interest payment would be about $ 3,150 and you would pay a total of about $ 383,967 in interest over the life of the loan.
On one 5/1 ARM, the average rate fell from 2.80% yesterday to 2.79%. The average rate last week was 2.78%. Today’s price is currently below the 52-week high of 3.43.
Borrowers with a 5/1 ARM of $ 100,000 at today’s interest rate of 2.79% pay $ 410 per month in principal and interest.
How To Calculate Mortgage Payments
If you cannot or do not want to pay in cash, Mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’re likely to be paying each month to see if it fits your budget.
You can a. use Mortgage calculator to estimate your monthly mortgage payment based on factors such as the interest rate, purchase price, and down payment.
Collect these data points to calculate your monthly mortgage payment:
- House price
- Deposit amount
- Interest rate
- Repayment term
- Taxes, insurance and any HOA fees
What you can afford depends on a number of factors including income, debt, debt-to-income ratio, down payment, and creditworthiness.
You also want to consider closing costs, property taxes, insurance costs, and ongoing maintenance costs.
The type of loan you choose can also affect how much home you can afford. When purchasing a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best for your particular situation.
Explanation of the annual percentage yield
The APR, or APR, is the total cost of your loan. It covers the interest and financing costs of your loan, as well as the settlement of interest, fees and time.
The APR is important as it can help you understand the total cost of your home loan if you choose to keep it for the entire term.