December 24, 2021 – Mortgage rates remain unchanged – Forbes Advisor
Editor’s Note: We earn a commission through affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.
Mortgage rates haven’t moved today. If you’re looking to buy a home or refinance your existing home, you still have the option to secure yourself at a historically low interest rate.
According to Bankrate.com, the average interest rate on a 30-year fixed-rate mortgage is currently 3.23% with an APR of 3.37%. The 15-year fixed-rate mortgage has an average interest rate of 2.53% with an APR of 2.74%. For a 30-year jumbo mortgage, the average interest rate is 3.18% with an APR of 3.28%. The average rate on a 5/1 ARM is 2.74% with an APR of 4.07%.
Related: Compare the current mortgage rates
30 years of fixed mortgage rates
The average rate for the 30-year fixed-rate mortgage benchmark remained at 3.23%. At this time last week, the 30-year fixed value was 3.28%. The 52-week low is 2.83%.
For a 30-year fixed-rate mortgage, the APR is 3.37%, lower than last week. The APR, or APR, includes the interest rate on a loan and the cost of financing a loan. It’s the total cost of your loan.
At today’s rate of 3.23%, homebuyers with a 30-year fixed-rate mortgage of $ 100,000 pay 434 a month in principal and interest (excluding taxes and fees), according to Forbes Advisor’s mortgage calculator. The total interest paid over the life of the loan is approximately $ 56,279.
Fixed mortgage rates for 15 years
The average interest rate on the 15-year fixed-rate mortgage is 2.53%. At the same time last week, the 15 year fixed rate mortgage was 2.54%. Today’s price is above the 52-week low of 2.28%.
The effective annual interest rate for a 15-year term is 2.74%. Last week around this time it was 2.74%.
At today’s interest rate of 2.53%, a 15-year fixed-rate mortgage would cost approximately 668 a month in principal and interest per $ 100,000. You would pay a total of around $ 20,276 in interest over the life of the loan.
Jumbo mortgage rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 3.18%. Last week, the average rate was 3.24%. 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 3.18% pay 431 per month in principal and interest per $ 100,000. That means that on a $ 750,000 loan, the monthly principal and interest payment is approximately 3,235 and you would pay around $ 414,709 in total interest over the life of the loan.
5/1 Adjustable mortgage rates
For a 5/1 ARM, the average rate stayed at 2.74%. The average rate last week was 2.75%. Today’s price is currently below the 52-week high of 3.43%.
Borrowers with a 5/1 ARM of $ 100,000 at today’s interest rate of 2.74% pay 408 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.
To estimate your monthly mortgage payment, you can use a mortgage calculator. It gives you an estimate of your monthly principal and interest payment based on your interest rate, your down payment, your purchase price, and other factors.
Here’s what you’ll need to calculate your monthly mortgage payment:
- Interest rate
- Deposit amount
- House price
- Repayment term
- HOA fees
What you can afford to buy
How much house you can afford doesn’t just depend on your income and debts.
Here are a few main factors that determine what you can afford:
- Debt-To-Income Ratio, or DTI
- down payment
Explanation of the annual percentage
Annual effective rate (APR), or annual percentage, is a calculation that includes both the interest rate on a loan and the cost of financing a loan, expressed as an annual cost over the life of the loan. In other words, it’s the total cost of the loan. APR accounts for interest, fees and time.
The APR is important as it can help you understand the total cost of your home loan if you choose to keep it for the entire term.