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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 have fallen today and remain at historically low levels.
The average rate on a 30-year fixed mortgage is 3.10%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.43%. The average rate for a 30-year jumbo mortgage is 3.05% and the average rate for a 5/1 ARM is 2.74%.
Related: Compare current mortgage rates
30-year fixed mortgage rates
The average rate fell on a 30-year fixed mortgage, slipping to 3.10% from 3.19% yesterday. Today’s rate is below the 52-week high of 3.37%.
The 30-year fixed mortgage APR is 3.25%. At the same date last week, it was 3.34%. Here’s why the APR is important.
At an interest rate of 3.10%, a 30-year fixed mortgage would cost $ 427 per month in principal and interest (taxes and fees not included) per $ 100,000, according to the Forbes Advisor mortgage calculator. You would pay around $ 53,726 in total interest over the life of the loan.
15-year mortgage rates
Today, the 15-year fixed mortgage rate stands at 2.43%, lower than it was at this time yesterday. Last week it was 2.49%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed rate, the APR is 2.65%. Last week it was 2.72%.
With an interest rate of 2.43%, you would pay $ 664 per month in principal and interest for every $ 100,000 borrowed. Over the life of the loan, you would pay $ 19,430 in total interest.
Giant mortgage rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.05%. Last week, the average rate was 3.17%. 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 3.05% will pay $ 424 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 $ 3,182, and you would pay approximately $ 395,625 in total interest over the life of the loan.
ARM rate 5/1
The average interest rate on a 5/1 ARM stands at 2.74%, higher than the 52 week low of 2.83%. Last week, the average rate was 2.76%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.74% will pay $ 408 per month in principal and interest.
Calculate your mortgage payment
For much of the population, buying a home means working with a mortgage lender to secure a mortgage. It can be difficult to determine how much you can afford and what you are paying for.
To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price, and other factors.
To calculate your monthly mortgage payment, here’s what you’ll need:
- The price of the house
- The amount of your deposit
- The interest rate
- The term of the loan
- All taxes, insurance and HOA fees
What you can afford to buy
How much Home you can afford depends on a number of factors, including your income and your debt load.
Here are some main factors that determine what you can afford:
- Debt-to-income ratio, or DTI
- Advance payment
- Credit score
Why APR is important
The APR, or annual percentage rate, is a calculation that includes both the interest rate on a loan and the carrying charges on a loan, expressed as an annual cost over the life of the loan. In other words, it is the total cost of credit. APR takes into account interest, fees and time.
Since the APR includes both the interest rate and some fees associated with a home loan, the APR can help you understand the full cost of a mortgage if you keep it for its duration. The APR will generally be higher than the interest rate, but there are exceptions.