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Mortgage rates were unchanged today. If you are looking to buy or refinance a home, you still have the option of a historically low interest rate.
According to Bankrate.com, the average rate on a 30-year fixed-rate mortgage today is 3.12%, while the average rate on a 15-year mortgage is 2.41%. For a 30 year jumbo mortgage, the average interest rate is 3.11% and for a 5/1 ARM it is 3.15%.
30 year fixed rate mortgage
The average interest rate on a 30-year fixed-rate mortgage remained unchanged at 3.12%. The 52-week low is 2.83%.
The 30-year fixed mortgage APR is 3.31%. At that point last week it was 3.27%. Here’s why APR matters.
At a rate of 3.12%, a 30-year fixed-rate mortgage would cost $ 428 per month in principal and interest (taxes and fees not included) per $ 100,000, according to Forbes Advisor Mortgage calculator. At total interest, you would pay $ 54,117 over the life of the loan.
15 year fixed rate mortgage
Today the fixed mortgage rate for 15 years is 2.41% higher than yesterday. Last week it was 2.39%. Today’s rate is above the 52-week low of 2.32%.
With a fixed term of 15 years, the annual interest rate is 2.70%. Last week it was 2.68%.
A $ 100,000 15-year fixed-rate mortgage at today’s interest rate of 2.41% costs $ 663 per month in both principal and interest. Over the life of the loan, you would pay a total of $ 19,261 in interest.
The average rate on the 30 year jumbo fixed rate mortgage is 3.11%. Last week the average rate was 3.07%. The 30-year fixed 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 3.11% pay $ 428 per month in principal and interest per $ 100,000. That means that for a $ 750,000 loan, the monthly principal and interest payment is approximately $ 3,207 and you would pay a total of approximately $ 404,411 in interest over the life of the loan.
The average interest rate for a 5/1 ARM is at 3.15% and thus above the 52-week low of 2.85%. Last week the average rate was 3.14%.
Borrowers with a 5/1 ARM of $ 100,000 at today’s interest rate of 3.15% pay $ 430 per month in principal and interest.
How to calculate mortgage payments
If you cannot or do not want to pay in cash, Mortgage lender and mortgages will be part of your buying process. It’s important to find out what you’re likely to pay each month to see if it fits into your budget.
You can use one Mortgage calculator to estimate your monthly mortgage payment based on factors such as the interest rate, purchase price and down payment.
To calculate your monthly mortgage payment, you will need the following:
- The home price
- Your deposit amount
- The interest rate
- The loan term
- All taxes, insurance and HOA fees
What you can afford depends on a number of factors including your 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 traditional mortgage, FHA loan, VA loan, or USDA loan is best for your particular situation.
What is APR?
The annual percentage (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 the cost of financing.
The APR is important as it can help you understand the total cost of your home loan if you keep it for the entire term.