January 19, 2022—Mortgage Rates Remain At Historical Lows – Forbes Advisor

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Mortgage rates stayed flat today. If you’re looking to buy or refinance a home, you still have a chance to pick up a historically low rate.

Today, the average rate on a 30-year fixed mortgage is 3.58%, according to Bankrate.com, while the average rate on a 15-year mortgage is 2.93%. On a 30-year jumbo mortgage, the average rate is 3.59%, and the average rate on a 5/1 ARM is 2.77%.

Related: Compare Current Mortgage Rates

30-Year Fixed Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage stayed at 3.58%. This time last week, the 30-year fixed was 3.52%. Today’s rate is the same as the 52-week high of 3.58%.

The 30-year fixed mortgage APR is 3.65%. At this time last week, it was 3.60%. Here’s why APR is important.

At today’s interest rate of 3.58%, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay 454 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be about $63,268.

15-Year Fixed Mortgage Rates

The average interest rate on the 15-year fixed mortgage sits at 2.93%. This same time last week, the 15-year fixed-rate mortgage was at 2.84%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 3.08%. This time last week, it was 3.01%.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 2.93% will cost 687 per month in principal and interest. Over the life of the loan, you would pay $23,700 in total interest.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage is 3.59%. Last week, the average rate was 3.51%. 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 3.59% will pay 454 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 3,406, and you’d pay approximately $476,026 in total interest over the life of the loan.

5/1 Adjustable-Rate Mortgage Rates

The average interest rate on a 5/1 ARM sits at 2.77%, higher than the 52-week low of 2.82%. Last week, the average rate was 2.74%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.77% will pay 409 per month in principal and interest.

Calculate Your Mortgage Payment

If you can’t or don’t want to pay cash, mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’ll likely pay each month to see if it fits into your budget.

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

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

What you can afford depends on a number of factors, including your income, debt, debt-to-income ratio, down payment and credit score.

You also want to consider closing costs, property taxes, insurance costs and ongoing maintenance expenses.

The type of loan you choose can also affect how much house you can afford. When shopping for a loan, think about whether a conventional mortgage, FHA loan, VA loan or USDA loan is best for your particular situation.

Why APR Is Important

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.

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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