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.
The average rate on a 30-year fixed mortgage is 3.18%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.45%. The average rate on a 30-year jumbo mortgage is 3.19%, and the average rate on a 5/1 ARM is 3.20%.
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30-year Fixed-rate Mortgages
The average rate for the benchmark 30-year fixed-rate mortgage rose to 3.18%. Last week, the 30-year fixed was 3.10%. The 52-week high is 3.40%.
On a 30-year fixed mortgage, the APR is 3.35%, higher 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 3.18%, a 30-year fixed mortgage would cost $431 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you’d pay $55,295 over the life of the loan.
15-year Fixed-rate Mortgages
The average interest rate on the 15-year fixed mortgage sits at 2.45%. This same time last week, the 15-year fixed-rate mortgage was at 2.38%. Today’s rate is higher than the 52-week low of 2.32%.
On a 15-year fixed, the APR is 2.74%. Last week it was 2.68%.
At today’s interest rate of 2.45%, a 15-year fixed-rate mortgage would cost approximately $664 per month in principal and interest per $100,000. You would pay around $19,599 in total interest over the life of the loan.
Jumbo Mortgages
On a 30-year jumbo, the average interest rate sits at 3.19%, higher than it was at this time last week. The average rate was 3.09% 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 3.19% will pay $432 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 $3,239, and you’d pay approximately $416,184 in total interest over the life of the loan.
5/1 ARMs
On a 5/1 ARM, the average rate stayed at 3.20%. The average rate was 3.24% last week. Today’s rate is currently lower than the 52-week high of 3.32.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 3.20% will pay $432 per month in principal and interest.
Calculate Your Mortgage Payment
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.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.
Gather these data points to calculate your monthly mortgage payment:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Taxes, insurance and any HOA fees
How Much to Save for a House
You may know you have to save enough for a down payment, but it takes more money than that to get through the homebuying process. Plus, after you buy, you have to furnish your new home and keep up with potential repairs.
Here are six things to prepare for when saving up for a house:
- Down payment
- Inspection and appraisal
- Closing costs
- Ongoing costs
- Home furnishings
- Repairs and renovations
How Do 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.