Editor’s Note: Forbes Advisor may earn a commission on sales made through affiliate links on this page, but this does not affect the opinions or ratings of our editors.
For anyone in the market looking to buy or refinance a home, it’s a good time to get your hands on a low interest rate. Mortgage rates were unchanged today, holding rates at historic lows.
According to Bankrate.com, the average interest rate on a 30-year fixed-rate mortgage is currently 3.05% with an APR of 3.27%. The 15-year fixed-rate mortgage has an average interest rate of 2.37% with an APR of 2.67%. For a 30-year jumbo mortgage, the average interest rate is 2.99% with an APR of 3.11%. The average rate on a 5/1 ARM is 2.80% with an APR of 3.96%.
30-year fixed-rate mortgages
The average interest rate on a 30-year fixed-rate mortgage remained unchanged at 3.05%. The 52-week high is 3.37%.
The 30-year annual rate for fixed-rate mortgages is 3.27%. At that time last week it was 3.30%. Here’s why APR is important.
At today’s rate of 3.05%, homebuyers with a 30-year fixed-rate mortgage of $ 100,000 pay 424 a month in principal and interest (excluding taxes and fees), the Forbes advisor Mortgage calculator shows. You would pay a total of approximately $ 52,750 in interest over the life of the loan.
15-year fixed-rate mortgages
Today, the 15-year fixed-rate mortgage rate is 2.37%, just as it was yesterday. Last week it was 2.42%. Today’s price is above the 52-week low of 2.32%.
The effective annual interest rate for a 15-year term is 2.67%. Last week around this time it was 2.71%.
At today’s interest rate of 2.37%, a 15-year fixed-rate mortgage would cost about $ 661 per month in principal and interest per $ 100,000. You would pay a total of around $ 18,924 in interest over the life of the loan.
For a 30-year jumbo, the average interest rate is 2.99%, lower than last week. The average rate at this point last week was 3.04%. 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 2.99% pay 421 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 $ 3,158, and you would pay a total of about $ 386,875 in total interest over the life of the loan.
On one 5/1 ARM, the average rate stayed at 2.80%. The average rate last week was 2.81%. 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 2.80% pay 411 per month in principal and interest.
Calculate your mortgage payment
Mortgages and Mortgage lenders are often a necessary part of buying a home, but understanding what you are paying for – and what you can actually afford – can be difficult.
Using a Mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment, and other expenses.
Collect these data points to calculate your monthly mortgage payment:
- Interest rate
- Deposit amount
- House price
- Repayment term
- HOA fees
Saving for a house
You may know that you need to save enough to pay a down payment, but it takes more money to complete the home buying process. Also, once you buy it, you need to set up your new home and keep up with potential repairs.
Here are six things to prepare for, though Saving for a house:
- Inspection and evaluation
- Closing costs
- Running costs
- Home textiles
- Repairs and renovations
Why should I get pre-approved for a mortgage?
Mortgage pre-approval is a lender’s offer to lend you money based on your financial circumstances and specific terms and conditions.
You can start the pre-approval process by gathering documents that your lender will need, including your:
- Social security card
- Current W-2 forms
- Pay slips
- Bank statements
- tax returns
The lender you choose will then guide you through the pre-approval process.