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It is a good time to set a mortgage rate. The average interest rate on a 30-year fixed-rate mortgage has fallen today, giving buyers and refinancing seekers the option to choose historically low interest rates.
Today, according to Bankrate.com, the average rate on a 30-year fixed-rate mortgage is 3.16%, while the average rate on a 15-year mortgage is 2.42%. For a 30 year jumbo mortgage, the average interest rate is 3.12% and the average interest rate for a 5/1 ARM is 2.80%.
Related: Compare Current Mortgage Rates
30-year fixed-rate mortgages
The average interest rate on a 30-year fixed-rate mortgage fell from 3.22% yesterday to 3.16%. The 52-week high is 3.37%.
The effective annual interest rate for a 30-year term is 3.33%. Last week it was 3.35% this time. The APR is the total cost of your loan.
At today’s interest rate of 3.16%, homebuyers with a 30-year fixed-rate mortgage of $ 100,000 pay $ 430 a month in principal and interest (excluding taxes and fees), according to Forbes Advisor’s mortgage calculator. You would pay a total of approximately $ 54,902 in interest over the life of the loan.
15-year fixed-rate mortgages
Today the interest rate on 15-year fixed-rate mortgages is 2.42% lower than a day ago. Last week it was 2.44%. Today’s rate is above the 52-week low of 2.28%.
With a term of 15 years, the effective annual interest rate is 2.68%. Last week it was 2.71%.
At 2.42% interest, you would be paying $ 663 per month in principal and interest for every $ 100,000 borrowed. Over the life of the loan, you would pay a total of $ 19,345 in interest.
For a 30-year jumbo, the average interest rate is 3.12%, lower than it was at that point last week. The average rate at this point last week was 3.15%. 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 3.12% pay $ 428 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 about $ 3,211 and you would pay a total of about $ 405,879 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM is 2.80%, above the 52-week low of 2.83%. Last week, the average rate was 2.79%.
Borrowers with a 5/1 ARM of $ 100,000 at today’s interest rate of 2.80% pay $ 411 per month in principal and interest.
How To Calculate Mortgage Payments
For a large part of the population, buying a home means working with a mortgage lender to get a mortgage. Figuring out how much you can afford and what you are paying for can be difficult.
You can use a mortgage calculator to estimate your monthly mortgage payment based on factors such as the interest rate, purchase price, and down payment.
Collect these data points to calculate your monthly mortgage payment:
- House price
- Deposit amount
- interest rate
- Repayment 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 your creditworthiness.
You also want to consider closing costs, property taxes, insurance costs, and ongoing maintenance costs.
The type of loan you choose can also affect how much home you can afford. When purchasing a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best for your particular situation.
Obtained pre-approval 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.