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It is a good time to set a mortgage rate. The average interest rate on a 30-year fixed-rate mortgage has fallen today, giving buyers and refinancing seekers the option to choose historically low interest rates.
Today, according to Bankrate.com, the average rate on a 30-year fixed-rate mortgage is 3.11%, while the average rate on a 15-year mortgage is 2.42%. The average rate on a 30 year jumbo mortgage is 3.08% and the average rate on a 5/1 ARM is 3.00%.
30-year fixed-rate mortgages
The average interest rate for the benchmark 30-year fixed-rate mortgage fell to 3.11%. A week ago, the 30-year fixed value was 3.15%. The 52-week high is 3.37%.
The 30-year APR for fixed-rate mortgages is 3.31%. At this point last week it was 3.34%. Here’s why APR is important.
At a rate of 3.11%, a 30-year fixed-rate mortgage would cost 428 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 $ 53,922 in interest over the life of the loan.
15-year fixed-rate mortgages
Today, the 15-year fixed-rate mortgage rate is 2.42% lower than yesterday. Last week it was 2.45%. Today’s price is above the 52-week low of 2.32%.
The effective annual interest rate for a 15-year term is 2.71%. Last week at this time it was 2.73%.
A $ 100,000 15-year fixed-rate mortgage with a current rate of 2.42% costs 663 per month in both principal and interest. Over the life of the loan, you would pay a total of $ 19,345 in interest.
The average interest rate on the 30-year jumbo fixed-rate mortgage is 3.08%. Last week, the average rate was 3.14%. 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 3.08% pay 426 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 $ 3,194, and you would pay a total of about $ 400,013 in total interest over the life of the loan.
The average interest rate for a 5/1 ARM is at 3.00% and thus above the 52-week low of 2.85%. Last week the average rate was 3.33%.
Borrowers with a 5/1 ARM of $ 100,000 at today’s rate of 3.00% pay 422 per month in principal and interest.
Calculate your mortgage payment
For a large part of the population, buying a home means having one Mortgage lender to get a mortgage. Figuring out how much you can afford and what you are paying for 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.
Here’s what you’ll need 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.
Should I get pre-approved for a mortgage?
Pre-approval for a mortgage can help you buy a home. Mortgage pre-approval is an offer from a lender to lend you money. It can help you appear more attractive to sellers.
To get pre-approval for a mortgage, first collect documents. You’ll need your social security card, W-2 forms, pay slips, bank statements, tax returns, and any other documents your lender will need.
The lender you choose will guide you through the pre-approval process.