January 5, 2022—Mortgage Rates Advance – 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 3.37% with an APR of 3.49%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.66% with an APR of 2.86%. On a 30-year jumbo mortgage, the average rate is 3.35% with an APR of 3.44%. The average rate on a 5/1 ARM is 2.75% with an APR of 4.07%.

Related: Compare Current Mortgage Rates

30-Year Fixed Mortgage Rates

The average rate rose on a 30-year fixed mortgage, inching up to 3.37% from 3.32% one day ago. The 52-week low is 2.83%.

The APR on a 30-year fixed is 3.49%. This time last week, it was 3.39%. APR is the all-in cost of your loan.

According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay 442 per month in principal and interest (taxes and fees not included) at today’s interest rate of 3.37%. You’d pay approximately $59,055 in total interest over the life of the loan.

15-Year Fixed Mortgage Rates

Today, the 15-year fixed mortgage rate is 2.66%, higher than it was yesterday. Last week, it was 2.56%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 2.86%. This time last week, it was 2.77%.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 2.66% will cost 674 per month in principal and interest. Over the life of the loan, you would pay $21,383 in total interest.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage is 3.35%. Last week, the average rate was 3.23%. 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 3.35% will pay 441 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 3,305, and you’d pay around $439,927 in total interest over the life of the loan.

5/1 ARM Rates

The average interest rate on a 5/1 ARM is 2.75%, higher than the 52-week low of 2.83%. Last week, the average rate was 2.74%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.75% will pay 408 per month in principal and interest.

How to Calculate Mortgage Payments

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.

Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.

Here’s what you’ll need in order to calculate your monthly mortgage payment:

  • 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.

APR can help you understand the total cost of a mortgage if you keep it for the entire term. Keep in mind that the APR is often higher than the interest rate.

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