January 7, 2022—Rates Rose – Forbes Advisor

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

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 3.46% with an APR of 3.57%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.73% with an APR of 2.92%. On a 30-year jumbo mortgage, the average rate is 3.45% with an APR of 3.54%. The average rate on a 5/1 ARM is 2.73% with an APR of 4.07%.

Related: Compare Current Mortgage Rates

30-Year Fixed-Rate Mortgage Rates

Today, the average rate for the benchmark 30-year fixed mortgage rose to 3.46%. One week ago, the 30-year fixed was 3.29%. The 52-week low is 2.83%.

On a 30-year fixed mortgage, the APR is 3.57%, 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.

At today’s interest rate of 3.46%, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay 447 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay approximately $60,853 in total interest over the life of the loan.

15-Year Fixed-Rate Mortgage Rates

The average interest rate on the 15-year fixed mortgage is 2.73%. This same time last week, the 15-year fixed-rate mortgage was at 2.57%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 2.92%. This time last week, it was 2.78%.

At today’s interest rate of 2.73%, a 15-year fixed-rate mortgage would cost approximately 678 per month in principal and interest per $100,000. You would pay around $21,981 in total interest over the life of the loan.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage sits at 3.45%. Last week, the average rate was 3.26%. 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 3.45% will pay 446 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 3,347, and you’d pay around $454,897 in total interest over the life of the loan.

5/1 ARM Rates

The average interest rate on a 5/1 ARM is 2.73%, 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 2.73% will pay 407 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.

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.

What’s an APR and Why Is It Important?

APR, or annual percentage rate, is a calculation that includes both a loan’s interest rate and a loan’s finance charges, expressed as an annual cost over the life of the loan. In other words, it’s the total cost of credit. APR accounts for interest, fees and time.

APR is important because it can help you understand the total cost of your home loan if you decide to keep it for the entire term.

Source

Leave a Reply

Your email address will not be published.