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For anyone in the market to buy or refinance a home, now is a good time to secure a low rate. Mortgage rates are unchanged today, keeping rates at historically low levels.
The average rate on a 30-year fixed mortgage is 3.16%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.45%. The average rate for a 30-year jumbo mortgage is 3.13% and the average rate for a 5/1 ARM is 2.76%.
Related: Compare current mortgage rates
30-year fixed mortgage rates
The average 30-year fixed-rate benchmark mortgage rate remained at 3.16%. At the same time last week, the 30-year fixed rate was 3.21%. Today’s rate is below the 52-week high of 3.37%.
The 30-year fixed mortgage APR is 3.30%. On the same date last week, it was 3.36%. Here’s why the APR is important.
According to the Forbes Advisor mortgage calculator, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay $ 430 per month in principal and interest (taxes and fees not included) at the current interest rate of Â£ 3.00 16%. You would pay around $ 54,902 in total interest over the life of the loan.
15-year mortgage interest rates
The average interest rate on the 15-year fixed mortgage is 2.45%. At the same time last week, the 15-year fixed rate mortgage was at 2.48%. Today’s rate is higher than the 52-week low of 2.28%.
The APR on a 15-year fixed rate is 2.68%. This time last week it was 2.71%.
A 15-year, $ 100,000 fixed rate mortgage with a current interest rate of 2.45% will cost $ 664 per month in principal and interest. Over the life of the loan, you would pay $ 19,599 in total interest.
Giant mortgage rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.13%. Last week, the average rate was 3.18%. 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 3.13% will pay $ 429 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 $ 3,215, and you would pay approximately $ 407,348 in total interest over the life of the loan.
ARM rate 5/1
The average interest rate on a 5/1 ARM stands at 2.76%, higher than the 52 week low of 2.83%. Last week, the average rate was 2.80%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.76% will pay $ 409 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.
Do I need to get pre-approved for a mortgage?
Getting pre-approved for a mortgage can help you during the home buying process. Mortgage pre-approval is a lender’s offer to lend you money. It can help you appear more attractive to sellers.
To get pre-approved for a mortgage, start by gathering documents. You will need your Social Security card, W-2 forms, pay stubs, bank statements, income tax returns, and any other documents required by your lender.
The lender you select will walk you through the pre-approval process.