September 20, 2022—Mortgage Rates Advance – Forbes Advisor

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The current average rate on a 30-year fixed mortgage is 6.39%, compared to 6.16% a week earlier.

For borrowers who want a shorter mortgage, the average rate on a 15-year fixed mortgage is 5.70%, up 0.29% from the previous week.

If you want to lock in a lower rate by refinancing, compare your existing mortgage rate to today’s refinance rates.

Related: Compare Current Mortgage Rates

Mortgage Rates for September 20, 2022

30-Year Mortgage Rates

Today’s 30-year-fixed rate mortgage–the most popular mortgage product–is 6.39%, up 0.23% from a week earlier. Over the past 52 weeks, the lowest rate was 5.26% and the highest was 6.41%.

The interest rate is just one fee included in your mortgage. You’ll also pay lender fees, which differ from lender to lender. Both interest rate and lender fees are captured in the annual percentage rate, or the APR. This week the APR on a 30-year fixed-rate mortgage is 6.40%. Last week, the APR was 6.17%.

Let’s say your home loan is $100,000 and you have a 30-year, fixed-rate mortgage with the current rate of 6.39%, your monthly payment will be about $625, including principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. That’s around $124,946 in total interest over the life of the loan.

15-Year Mortgage Rates

The average interest rate on the 15-year fixed mortgage is 5.70%. This same time last week, the 15-year fixed-rate mortgage was at 5.41%. Today’s rate is higher than the 52-week low of 4.62%.

The APR on a 15-year fixed is 5.72%. It was 5.43% this time last week.

At today’s interest rate of 5.70%, a 15-year fixed-rate mortgage would cost approximately $828 per month in principal and interest per $100,000. You would pay around $48,992 in total interest over the life of the loan.

Jumbo Mortgage Rates

The current average interest rate on a 30-year fixed-rate jumbo mortgage is 6.37%. Last week, the average rate was 6.17%. Over the past year, the rate on a 30-year jumbo mortgage has been as high as 6.42% and as low as 5.19%.

If you lock in today’s rate of 6.17% on a 30-year, fixed-rate jumbo mortgage, you will pay $624 per month in principal and interest per $100,000 in financing. That means that on a $750,000 loan, the monthly principal and interest payment would be around $4,681, and you’d pay around $933,566 in total interest over the life of the loan.

5/1 ARM Interest Rates

Currently, the average interest rate on a 5/1 ARM is 4.88%, up from the 52-week low of 4.11%. Last week, the average rate was 4.61%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 4.88% will spend $530 per month in principal and interest.

Where Are Mortgage Rates Headed This Year?

Rates for home loans have soared this year, rising from 3.22% in early January to 6.39% this week for the most popular 30-year, fixed-rate mortgage. What happens next is anyone’s guess: a Forbes Advisor survey of experts predicts the year-end average anywhere from 5% to nearly 7%. If you are seeking a mortgage right now, consult multiple lenders and lock in a rate as soon as a competitive offer comes along.

What’s an APR, and Why Is It Important?

The annual percentage rate, or APR, encompasses the mortgage interest rate and lender fees over the total life of the loan. It’s important because it can give homebuyers a more complete picture of total costs, not just the interest rate.

Comparing APR among lenders is a better way to see overall costs because it will show you everything from interest rate to fees.