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Mortgage rates have remained stable today, giving buyers and homeowners (who wish to refinance) a chance to secure some of the lowest rates on record.
To date, the average rate on a 30-year fixed mortgage is 3.21% with an APR of 3.37%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.48% with an APR of 2.71%. On a 30-year jumbo mortgage, the average rate is 3.18% with an APR of 3.28%. The average rate on a 5/1 ARM is 2.80% with an APR of 3.92%.
Related: Compare current mortgage rates
30-year fixed mortgage interest rates
The average 30-year fixed-rate benchmark mortgage rate remained at 3.21%. At the same time last week, the 30-year fixed rate was 3.17%. The 52 week low is 2.83%.
The APR on a 30-year fixed rate is 3.37%. This time last week it was 3.34%. The APR is the overall cost of your loan.
At the current interest rate of 3.21%, homebuyers with a $ 100,000, 30-year fixed rate mortgage will pay $ 433 per month in principal and interest (taxes and fees not included), calculator says Forbes Mortgage Advisor. You would pay around $ 55,885 in total interest over the life of the loan.
15-year mortgage interest rates
Today, the 15-year fixed mortgage rate stands at 2.48%, the same as it was at this time yesterday. Last week it was 2.42%. Today’s rate is higher than the 52-week low of 2.28%.
The APR on a 15-year fixed rate is 2.71%. This time last week it was 2.66%.
At the current interest rate of 2.48%, a 15-year fixed rate mortgage would cost about $ 666 per month in principal and interest per $ 100,000. You would pay approximately $ 19,853 in total interest over the life of the loan.
Giant mortgage rates
On a 30-year jumbo, the average interest rate is 3.18%, higher than it was at this time last week. The average rate was 3.14% at the same date last week. 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 3.18% will pay $ 431 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 $ 3,235, and you would pay approximately $ 414,709 in total interest over the life of the loan.
Variable rate mortgage rates 5/1
The average interest rate on a 5/1 ARM stands at 2.80%, 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 2.80% will pay $ 411 per month in principal and interest.
Calculation of 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.
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, here’s what you’ll need:
- Interest rate
- Deposit amount
- House price
- term of the loan
- HOA fees
What you can afford to buy
How much home you can afford doesn’t just depend on your income and debt.
Here are some main factors that determine what you can afford:
- Debt-to-income ratio, or DTI
- Advance payment
- Credit score
Explain the annual percentage rate
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.