Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.
Mortgage rates have gone down today. If you’re interested in buying a home or refinancing your current home, you still have a chance to secure a historically low rate.
To date, the average rate on a 30-year fixed mortgage is 3.00% with an APR of 3.24%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.28% with an APR of 2.63%. On a 30-year jumbo mortgage, the average rate is 2.97% with an APR of 3.10%. The average rate on a 5/1 ARM is 2.79% with an APR of 3.90%.
30 year fixed rate mortgages
The average rate on the 30-year fixed-rate benchmark mortgage slipped to 3.00%. Last week, the 30-year fixed rate was 3.04%. The 52 week low is 2.83%.
The APR on a 30-year fixed rate is 3.24%. This time last week it was 3.28%. The APR is the overall cost of your loan.
At an interest rate of 3.00%, a 30-year fixed mortgage would cost $ 422 per month in principal and interest (taxes and fees not included) per $ 100,000, according to the Forbes Advisor mortgage calculator. You would pay approximately $ 51,777 in total interest over the life of the loan.
15 year fixed rate mortgages
Today, the 15-year fixed mortgage rate is 2.28%, the same as a day ago. Last week it was 2.34%.
The APR on a 15-year fixed rate is 2.63%. This time last week it was 2.66%.
With an interest rate of 2.28%, you would pay 656 per month in principal and interest for every $ 100,000 borrowed. Over the life of the loan, you would pay $ 18,167 in total interest.
Giant mortgages
The average interest rate on the 30-year fixed rate jumbo mortgage is 2.97%. Last week, the average rate was 3.02%. 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 a current interest rate of 2.97% will pay $ 420 per month in principal and interest per $ 100,000. This means that on a $ 750,000 loan, the monthly principal and interest payment would be approximately $ 3,150, and you would pay approximately $ 383,967 in total interest over the life of the loan.
5/1 arm
On a 5/1 ARM, the average rate fell slightly to 2.79% from 2.80% yesterday. The average rate was 2.78% last week. Today’s rate is currently below the 52-week high of 3.43.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.79% will pay $ 410 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’re likely to pay each month to see if it’s within your budget.
You can use a mortgage calculator to estimate your monthly mortgage payment based on factors such as your interest rate, purchase price, and down payment.
Collect these data points to calculate your monthly mortgage payment:
- House price
- Deposit amount
- Interest rate
- term of the loan
- Taxes, insurance and any HOA fees
What you can afford depends on a number of factors including your income, debt, debt ratio, down payment, and credit rating.
You should also factor in closing costs, property taxes, insurance costs, and routine maintenance expenses.
The type of loan you choose can also affect the amount of home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited to your particular situation.
Explain the annual percentage return
The APR, or annual percentage rate, is the overall cost of your loan. It includes interest and finance charges on your loan, accounting for interest, fees, and time.
The APR is important because it can help you understand the total cost of your mortgage if you decide to keep it for the duration.