January 10, 2022—No Movement On Mortgage Rates – 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 remained unchanged today, keeping rates 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 2.93%. On a 30-year jumbo mortgage, the average rate is 3.46% 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 Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage stayed at 3.46%. One week ago, the 30-year fixed was 3.32%. The 52-week low is 2.83%.

The 30-year fixed mortgage APR is 3.57%. At this time last week, it was 3.44%. Here’s why APR is important.

According to the Forbes Advisor mortgage calculator, 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) at today’s interest rate of 3.46%. In total interest, you’d pay $60,853 over the life of the loan.

15-Year Fixed 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 2.60%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 2.93%. This time last week, it was 2.81%.

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 3.46%. Last week, the average rate was 3.31%. 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 3.46% will pay 447 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 3,351, and you’d pay around $456,400 in total interest over the life of the loan.

5/1 Adjustable-Rate Mortgage Rates

The average interest rate on a 5/1 ARM sits at 2.73%, higher than the 52-week low of 2.82%. 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.

Calculating Mortgage Payments

For much of the population, buying a home means working with a mortgage lender to get a mortgage. It can be tricky 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.

To calculate your monthly mortgage payment, here’s what you’ll need:

  • Home price
  • Down payment amount
  • Interest rate
  • Loan term
  • Taxes, insurance and any HOA fees

Figuring Out How Much House You Can Afford

The amount of house you can afford depends on more than just your income and debt.

Here are a few fundamental factors that go into what you can afford:

  • Income
  • Debt
  • Debt-to-income ratio, or DTI
  • Down payment
  • Credit score

Why 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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