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According to Bankrate.com, the average rate on a 30-year fixed-rate mortgage is 3.08% with an APR of 3.30%. The 15-year fixed-rate mortgage has an average interest rate of 2.42% with an APR of 2.71%. For a 30-year jumbo mortgage, the average interest rate is 3.04% with an APR of 3.16%. The average rate on a 5/1 ARM is 2.82% with an APR of 3.96%.
30-year fixed-rate mortgages
Today, the average interest rate on the benchmark 30-year fixed-rate mortgage rose to 3.08%. A week ago, the 30-year fixed value was 3.10%. Today’s rate is below the 52-week high of 3.37%.
The 30-year APR for fixed-rate mortgages is 3.30%. At that time last week it was 3.30%. Here’s why the APR is important.
At today’s rate of 3.08%, borrowers on a 30-year fixed-rate mortgage of $ 100,000 pay 426 a month in principal and interest (excluding taxes and fees), as the Forbes Advisor mortgage calculator shows. In total, you would pay $ 53,335 over the life of the loan.
15-year fixed-rate mortgages
The average interest rate on the 15-year fixed-rate mortgage is 2.42%. At the same time last week, the 15 year fixed rate mortgage was 2.40%. Today’s price is above the 52-week low of 2.32%.
With a term of 15 years, the effective annual interest rate is 2.71%. Last week it was 2.70%.
At today’s interest rate of 2.42%, a 15-year fixed-rate mortgage would cost about 663 a month in principal and interest per $ 100,000. You would pay a total of around $ 19,345 in interest over the life of the loan.
The average interest rate on the 30-year fixed-rate jumbo mortgage is 3.04%. Last week the average rate was 3.07%. The 30-year fixed interest rate on a jumbo mortgage is currently above the 52-week low of 2.85%.
Borrowers on a 30 year jumbo fixed rate mortgage with a current rate of 3.04% pay 424 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 approximately $ 3,178, and you would pay a total of approximately $ 394,164 in interest over the life of the loan.
The average interest rate on a 5/1 ARM is 2.82%, above the 52-week low of 2.85%. Last week the average rate was 2.84%.
Borrowers with a 5/1 ARM of $ 100,000 at today’s interest rate of 2.82% pay 412 per month in principal and interest.
How To Calculate Mortgage Payments
Mortgages and mortgage lenders are often a necessary part of buying a home, but understanding what you are paying for – and what you can actually afford – can be difficult.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment, and other expenses.
To calculate your monthly mortgage payment you will need the following:
- The house price
- Your deposit amount
- The interest rate
- The repayment term
- All taxes, insurance and HOA fees
Saving for a house
You may know that you need to save enough to pay a down payment, but it takes more money to go through the home buying process. Also, once you buy it, you need to set up your new home and keep up with potential repairs.
Here are six things to prepare for when saving for a home:
- Inspection and evaluation
- Closing costs
- Running costs
- Repairs and renovations
Why should I get pre-approved for a mortgage?
Pre-approval for a mortgage can help you buy a home. Mortgage pre-approval is an offer from a lender to lend you money. It can help you appear more attractive to sellers.
To get pre-approval for a mortgage, first collect documents. You’ll need your Social Security card, W-2 forms, pay slips, bank statements, tax returns, and any other documents your lender will need.
The lender you choose will guide you through the pre-approval process.