January 27, 2022—Mortgage Rates Trend Higher – Forbes Advisor

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It’s a good time to lock in a mortgage rate. The average rate on a 30-year fixed mortgage rose today, but rates are still at historical lows.

The average rate on a 30-year fixed mortgage is 3.73%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 3.10%. The average rate on a 30-year jumbo mortgage is 3.73%, and the average rate on a 5/1 ARM is 2.80%.

Related: Compare Current Mortgage Rates

30-Year Fixed-Rate Mortgage Rates

The average rate rose on a 30-year fixed mortgage, inching up to 3.73% from 3.70% yesterday. Today’s rate is the same as the 52-week high of 3.73%.

The 30-year fixed mortgage APR is 3.77%. At this time last week, it was 3.74%. Here’s why APR is important.

At today’s interest rate of 3.73%, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay 462 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $66,313 over the life of the loan.

15-Year Fixed-Rate Mortgage Rates

Today, the 15-year fixed mortgage rate is 3.10%, higher than it was one day ago. Last week, it was 3.03%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 3.21%. Last week it was 3.18%.

With an interest rate of 3.10%, you would pay 695 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $25,172 in total interest.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage sits at 3.73%. Last week, the average rate was 3.68%. 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 3.73% will pay 462 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 3,465, and you’d pay approximately $497,350 in total interest over the life of the loan.

5/1 ARM Interest Rates

The average interest rate on a 5/1 ARM sits at 2.80%, higher than the 52-week low of 2.82%. Last week, the average rate was 2.78%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.80% will pay 411 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 challenging to figure out how much you can afford and what you’re paying for.

To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price and other factors.

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

How Much to Save for a House

You may know you have to save enough for a down payment, but it takes more money than that to get through the homebuying process. Plus, after you buy, you have to furnish your new home and keep up with potential repairs.

Here are six things to prepare for when saving up for a house:

  • Down payment
  • Inspection and appraisal
  • Closing costs
  • Ongoing costs
  • Home furnishings
  • Repairs and renovations

Getting Preapproved for a Mortgage

Getting preapproved for a mortgage can help you during the homebuying process. Mortgage preapproval represents a lender’s offer to loan you money. It can help you appear more attractive to sellers.

To get preapproved for a mortgage, start by gathering documents. You’ll need your Social Security card, W-2 forms, pay stubs, bank statements, tax returns and any other documents your lender requires.

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

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