February 16, 2022—Mortgage Rates Increase – Forbes Advisor

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For anyone in the market to buy or refinance a home, it’s a good time to lock in a low rate. Mortgage rates rose today, but rates overall are at historical lows.

As of today, the average rate on a 30-year fixed mortgage is 4.22% with an APR of 4.17%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 3.54% with an APR of 3.55%. On a 30-year jumbo mortgage, the average rate is 4.25% with an APR of 4.28%. The average rate on a 5/1 ARM is 2.87% with an APR of 4.03%.

Related: Compare Current Mortgage Rates

30-Year Fixed Mortgage Rates

The average rate rose on a 30-year fixed mortgage, inching up to 4.22% from 4.20% yesterday. The 52-week high is 4.22%.

The APR on a 30-year fixed is 4.17%. This time last week, it was 4.00%. APR is the all-in cost of your loan.

According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay 490 per month in principal and interest (taxes and fees not included) at today’s interest rate of 4.22%. You’d pay about $76,467 in total interest over the life of the loan.

15-Year Fixed Mortgage Rates

Today, the 15-year fixed mortgage rate sits at 3.54%, higher than it was yesterday. Last week, it was 3.38%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 3.55%. Last week it was 3.46%.

At today’s interest rate of 3.54%, a 15-year fixed-rate mortgage would cost approximately 717 per month in principal and interest per $100,000. You would pay around $29,033 in total interest over the life of the loan.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage is 4.25%. Last week, the average rate was 3.99%. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 3.03%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 4.25% will pay 492 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 3,690, and you’d pay roughly $578,238 in total interest over the life of the loan.

5/1 Adjustable-Rate Mortgage Rates

On a 5/1 ARM, the average rate remained at 2.87%. The average rate was 2.85% 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 2.87% will pay 415 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 tricky to figure out how much you can afford and what you’re paying for.

You can use a mortgage calculator to estimate your monthly mortgage payment based on factors including your interest rate, purchase price and down payment.

Gather these data points to calculate your monthly mortgage payment:

  • Home price
  • Down payment amount
  • Interest rate
  • Loan term
  • Taxes, insurance and any HOA fees

Figuring Out How Much House You Can Afford

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

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

  • Income
  • Debt
  • Debt-to-income ratio, or DTI
  • Down payment
  • Credit score

Explaining Annual Percentage Rate

The APR, or annual percentage rate, is the all-in cost of your loan. It includes your loan’s interest and finance charges, accounting for interest, fees and time.

APR is important because it can help you understand the complete cost of your home loan if you decide to keep it for the entire term.

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