December 30, 2021—Rates Dip – Forbes Advisor

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It’s a good time to lock in a mortgage rate. The average rate on a 30-year fixed mortgage fell today, giving buyers and those looking to refinance a chance to pick historically low rates.

As of today, the average rate on a 30-year fixed mortgage is 3.27% with an APR of 3.39%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.56% with an APR of 2.77%. On a 30-year jumbo mortgage, the average rate is 3.23% with an APR of 3.33%. The average rate on a 5/1 ARM is 2.74% with an APR of 4.07%.

Related: Compare Current Mortgage Rates

30-Year Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage fell to 3.27%. This time last week, the 30-year fixed was 3.23%. The 52-week low is 2.83%.

The APR on a 30-year fixed is 3.39%. This time last week, it was 3.37%. APR is the all-in cost of your loan.

At an interest rate of 3.27%, a 30-year fixed mortgage would cost 436 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $57,070 over the life of the loan.

15-Year Mortgage Interest Rates

Today, the 15-year fixed mortgage rate is 2.56%, higher than it was at this time yesterday. Last week, it was 2.53%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 2.77%. Last week it was 2.74%.

At today’s interest rate of 2.56%, a 15-year fixed-rate mortgage would cost approximately 670 per month in principal and interest per $100,000. You would pay around $20,531 in total interest over the life of the loan.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 3.23%, the same as it was at this time last week. The average rate was 3.18% at this time 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 today’s interest rate of 3.23% will pay 434 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 around 3,256, and you’d pay roughly $422,095 in total interest over the life of the loan.

5/1 ARM Interest Rates

On a 5/1 ARM, the average rate stayed at 2.74%. The average rate was 2.74% last week. Today’s rate is currently lower than the 52-week high of 3.43%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.74% will pay 408 per month in principal and interest.

Calculate Your Mortgage Payment

For much of the population, buying a home means working with a mortgage lender to get a mortgage. It can be challenging to figure out how much you can afford and what you’re paying for.

To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price and other factors.

To calculate your monthly mortgage payment, here’s what you’ll need:

  • Interest rate
  • Down payment amount
  • Home price
  • Loan term
  • Taxes
  • Insurance
  • HOA fees

How Much House Can I Afford?

The amount of house you can afford depends on a number of factors, including your income and debt.

Here are a few fundamental factors that go into what you can afford:

  • Your income
  • Your debt
  • Your debt-to-income ratio, or DTI
  • Your down payment
  • Your credit score

What’s an APR and Why Is It Important?

Annual percentage rate, or APR, takes into account interest, fees and time. It’s the total cost of your loan and includes both the loan’s interest rate and its finance charges.

Since APR includes both the interest rate and certain fees associated with a home loan, APR can help you understand the total cost of a mortgage if you keep it for the entire term. The APR will usually be higher than the interest rate, but there are exceptions.

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