February 8, 2022—Mortgage Rates Hit Near Rock Bottom Lows – Forbes Advisor

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The rate on a 30-year fixed mortgage declined today, providing buyers and homeowners interested in refinancing a chance to lock in a historically low rate.

Today, the average rate on a 30-year fixed mortgage is 3.97%, according to Bankrate.com, while the average rate on a 15-year mortgage is 3.30%. On a 30-year jumbo mortgage, the average rate is 3.95%, and the average rate on a 5/1 ARM is 2.85%.

Related: Compare Current Mortgage Rates

30-Year Fixed-Rate Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage fell to 3.97%. This time last week, the 30-year fixed was 3.77%. The 52-week high is 3.98%.

On a 30-year fixed mortgage, the APR is 3.98%, higher than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s 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 476 per month in principal and interest (taxes and fees not included) at today’s interest rate of 3.97%. You’d pay around $71,247 in total interest over the life of the loan.

15-Year Mortgage Interest Rates

Today, the 15-year fixed mortgage rate sits at 3.30%, lower than it was at this time yesterday. Last week, it was 3.16%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 3.39%. This time last week, it was 3.25%.

At today’s interest rate of 3.30%, a 15-year fixed-rate mortgage would cost approximately 705 per month in principal and interest per $100,000. You would pay around $26,918 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 3.95%. Last week, the average rate was 3.75%. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 2.94%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 3.95% will pay 475 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 3,559, and you’d pay around $531,251 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 2.85%. The average rate was 2.84% 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 2.85% will pay 414 per month in principal and interest.

Calculate Your Mortgage Payment

Mortgages and mortgage lenders are often a necessary part of purchasing a home, but it can be difficult to understand what you’re paying for—and what you can actually afford.

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

Gather these data points to calculate your monthly mortgage payment:

  • The home price
  • Your down payment amount
  • The interest rate
  • The loan term
  • Any taxes, insurance and any 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.

Should I Get Preapproved for a Mortgage?

Mortgage preapproval represents a lender’s offer to loan you money based on your financial circumstances and specific terms.

You can start the preapproval process by gathering documents your lender will need, including your:

    • Social Security card
    • Recent W-2 forms
    • Pay stubs
    • Bank statements
    • Tax returns

The lender you select will then guide you through the preapproval process.

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