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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.
Today, the average rate on a 30-year fixed mortgage is 4.23%, according to Bankrate.com, while the average rate on a 15-year mortgage is 3.55%. On a 30-year jumbo mortgage, the average rate is 4.25%, and the average rate on a 5/1 ARM is 2.89%.
Related: Compare Current Mortgage Rates
30-Year Mortgage Rates
The average rate rose on a 30-year fixed mortgage, inching up to 4.23% from 4.22% yesterday. Today’s rate is the same as the 52-week high of 4.23%.
The APR on a 30-year fixed is 4.17%. This time last week, it was 4.01%. APR is the all-in cost of your loan.
At today’s interest rate of 4.23%, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay 491 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be approximately $76,677.
15-Year Mortgage Rates
The average interest rate on the 15-year fixed mortgage sits at 3.55%. This same time last week, the 15-year fixed-rate mortgage was at 3.36%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed, the APR is 3.55%. Last week it was 3.42%.
With an interest rate of 3.55%, you would pay 717 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $29,121 in total interest.
Jumbo Mortgage Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage sits at 4.25%. Last week, the average rate was 4.00%. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 3.03%.
Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 4.25% will pay 492 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 3,690, and you’d pay around $578,238 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 2.89%, higher than the 52-week low of 2.82%. Last week, the average rate was 2.86%.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.89% will pay 416 per month in principal and interest.
How to Calculate Mortgage Payments
If you can’t or don’t want to pay cash, mortgage lenders and mortgages will be part of your home buying process. It’s important to figure out what you’ll likely pay each month to see if it fits into your budget.
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
- 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.
Explaining Annual Percentage Rate
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.