December 27, 2021—Mortgage Rates Hold Steady – 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 remained the same today, keeping rates at historical lows.

The average rate on a 30-year fixed mortgage is 3.23%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.53%. The average rate on a 30-year jumbo mortgage is 3.18%, and the average rate on a 5/1 ARM is 2.74%.

Related: Compare Current Mortgage Rates

30-Year Fixed-Rate Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage stayed at 3.23%. This time last week, the 30-year fixed was 3.25%. The 52-week low is 2.83%.

The APR on a 30-year fixed is 3.37%. This time last week, it was 3.38%. APR is the all-in cost of your loan.

At today’s interest rate of 3.23%, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay 434 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $56,279 over the life of the loan.

15-Year Mortgage Interest Rates

Today, the 15-year fixed mortgage rate is 2.53%, the same as it was at this time yesterday. Last week, it was 2.54%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 2.74%. Last week it was 2.74%.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 2.53% will cost 668 per month in principal and interest. Over the life of the loan, you would pay $20,276 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 3.18%, lower than it was at this time last week. The average rate was 3.19% at this time last week. 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 3.18% will pay 431 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 3,235, and you’d pay roughly $414,709 in total interest over the life of the loan.

5/1 Adjustable-Rate Mortgage Rates

On a 5/1 ARM, the average rate stayed at 2.74%. The average rate was 2.74% 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 2.74% will pay 408 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

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.

Why APR Is 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 can help you understand the total cost of a mortgage if you keep it for the entire term. Keep in mind that the APR is often higher than the interest rate.

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