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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.
The average interest rate on a 30-year fixed-rate mortgage is 3.13%, according to Bankrate.com. For a 15-year fixed-rate mortgage, the average interest rate is 2.40%. The average interest rate on a 30 year jumbo mortgage is 3.12% and the average interest rate on a 5/1 ARM is 3.16%.
30-year fixed-rate mortgages
The average interest rate on a 30-year fixed-rate mortgage remained unchanged at 3.13%. The 52-week high is at 3.47%.
The 30-year APR for fixed-rate mortgages is 3.32%. At this point last week it was 3.31%. Here’s why APR is important.
According to the Forbes advisor Mortgage calculator, Home buyers with a $ 100,000 30-year fixed-rate mortgage pay $ 429 per month in principal and interest (excluding taxes and fees) at today’s interest rate of 3.13%. You would pay a total of approximately $ 54,313 in interest over the life of the loan.
15-year fixed-rate mortgages
The average interest rate on the 15-year fixed-rate mortgage is 2.40%. At the same time last week, the 15 year fixed rate mortgage was 2.41%. Today’s price is above the 52-week low of 2.32%.
The effective annual interest rate for a 15-year term is 2.69%. Last week at this time it was 2.70%.
At 2.40% interest, for every $ 100,000 borrowed per month, you would be paying $ 662 in principal and interest. You would pay a total of $ 19,177 in interest over the life of the loan.
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.12%. Last week, the average rate was 3.10%. 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 3.12% pay $ 428 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 $ 3,211 and you would pay a total of about $ 405,879 in total interest over the life of the loan.
On one 5/1 ARM, the average rate increased from 3.15% yesterday to 3.16%. The average rate last week was 3.14%. Today’s price is currently below the 52-week high of 3.32.
Borrowers with a 5/1 ARM of $ 100,000 at today’s rate of 3.16% pay $ 430 per month in principal and interest.
Calculation of 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.
To estimate your monthly mortgage payment, you can a Mortgage calculator. It gives you an estimate of your monthly principal and interest payment based on your interest rate, your down payment, your purchase price, and other factors.
To calculate your monthly mortgage payment, you will need the following:
- 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.
Obtained pre-approval 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.