February 21, 2022—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.

As of today, the average rate on a 30-year fixed mortgage is 4.20% with an APR of 4.13%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 3.42% with an APR of 3.41%. On a 30-year jumbo mortgage, the average rate is 4.19% with an APR of 4.22%. The average rate on a 5/1 ARM is 2.93% with an APR of 4.03%.

Related: Compare Current Mortgage Rates

30-Year Fixed Mortgage Rates

The average rate stayed flat on a 30-year fixed mortgage, remaining at 4.20%. The 52-week high is 4.23%.

On a 30-year fixed mortgage, the APR is 4.13%, lower 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 an interest rate of 4.20%, a 30-year fixed mortgage would cost 489 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. The total interest paid over the life of the loan will be about $76,046.

15-Year Fixed-Rate Mortgage Rates

The average interest rate on the 15-year fixed mortgage is 3.42%. This same time last week, the 15-year fixed-rate mortgage was at 3.51%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 3.41%. Last week it was 3.55%.

At today’s interest rate of 3.42%, a 15-year fixed-rate mortgage would cost approximately 711 per month in principal and interest per $100,000. You would pay around $27,973 in total interest over the life of the loan.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate sits at 4.19%, lower than it was at this time last week. The average rate was 4.24% at this time last week. 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 4.19% will pay 488 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 3,663, and you’d pay approximately $568,771 in total interest over the life of the loan.

5/1 ARM Interest Rates

On a 5/1 ARM, the average rate stayed at 2.93%. The average rate was 2.87% 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 2.93% will pay 418 per month in principal and interest.

Calculating Mortgage Payments

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.

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.

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

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

Annual percentage rate, or APR, takes into account interest, fees and time. It’s the total cost of your loan and includes both the loan’s interest rate and its finance charges.

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

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