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Mortgage rates have gone down today. If you’re interested in buying a home or refinancing your current home, you still have a chance to secure a historically low rate.
The average rate on a 30-year fixed mortgage is 3.15%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.45%. The average rate for a 30-year jumbo mortgage is 3.14% and the average rate for a 5/1 ARM is 3.33%.
30 year fixed rate mortgages
The average rate fell on a 30-year fixed mortgage, slipping to 3.15% from 3.16% yesterday. The 52 week high is 3.37%.
The 30-year fixed mortgage APR is 3.34%. At the same date last week, it was 3.37%. Here’s why the APR is important.
According to the Forbes Advisor mortgage calculator, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay 430 per month in principal and interest (taxes and fees not included) at the current interest rate of 3.15% . You would pay about $ 54,705 in total interest over the life of the loan.
15 year fixed rate mortgages
The average interest rate on the 15-year fixed mortgage is 2.45%. At the same time last week, the 15-year fixed rate mortgage was at 2.50%. Today’s rate is higher than the 52-week low of 2.32%.
The APR on a 15-year fixed rate is 2.73%. This time last week it was 2.77%.
A 15-year, $ 100,000 fixed rate mortgage with a current interest rate of 2.45% will cost $ 664 per month in principal and interest. Over the life of the loan, you would pay $ 19,599 in total interest.
On a 30-year jumbo, the average interest rate stands at 3.14%, lower than it was at this time last week. The average rate was 3.19% at the same date last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 2.85%.
Borrowers with a 30-year fixed rate jumbo mortgage with a current interest rate of 3.14% will pay $ 429 per month in principal and interest per $ 100,000. This means that on a $ 750,000 loan, the monthly principal and interest payment would be approximately $ 3,219, and you would pay approximately $ 408,818 in total interest over the life of the loan.
On a 5/1 ARM, the average rate remained at 3.33%. The average rate was 3.02% last week. Today’s rate is currently below the 52-week high of 3.43.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 3.33% will pay 440 per month in principal and interest.
Calculation of mortgage payments
For much of the population, buying a home means working with a mortgage lender to secure a mortgage. It can be difficult to determine how much you can afford and what you are paying for.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment, and other expenses.
To calculate your monthly mortgage payment, here’s what you’ll need:
- House price
- Deposit amount
- Interest rate
- term of the loan
- Taxes, insurance and any HOA fees
What you can afford depends on a number of factors including your income, debt, debt-to-income ratio, down payment, and credit rating.
You should also factor in closing costs, property taxes, insurance costs, and routine maintenance expenses.
The type of loan you choose can also affect the amount of home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited to your particular situation.
What is an APR and why is it important?
The annual percentage rate, or 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 its finance charges.
Since the APR includes both the interest rate and some fees associated with a home loan, the APR can help you understand the full cost of a mortgage if you keep it for the duration. The APR will generally be higher than the interest rate, but there are exceptions