September 23, 2021 – No movement on mortgage rates – Forbes Advisor
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Mortgage rates are unchanged today. Buyers – and homeowners looking to refinance – still have the option of taking advantage of a historically low rate.
Today, the average rate for a 30-year fixed mortgage is 3.07%, according to Bankrate.com, while the average rate for a 15-year mortgage is 2.34%. On a 30-year jumbo mortgage, the average rate is 3.05% and the average rate on a 5/1 ARM is 2.79%.
Related: Compare current mortgage rates
30 year fixed rate mortgages
The average rate remained stable on a 30-year fixed mortgage, remaining at 3.07%. The 52 week high is 3.37%.
On a 30-year fixed mortgage, the APR is 3.26%, higher than last week. The APR, or annual percentage rate, includes the interest rate on a loan and the cost of financing a loan. This is the overall cost of your loan.
At an interest rate of 3.07%, a 30-year fixed mortgage would cost $ 425 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 $ 53,140 in total interest over the life of the loan.
15 year fixed rate mortgages
The average interest rate on the 15-year fixed mortgage is 2.34%. At the same time last week, the 15-year fixed rate mortgage was at 2.32%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed rate, the APR is 2.63%. Last week it was 2.61%.
At the current interest rate of 2.34%, a 15-year fixed rate mortgage would cost about $ 659 per month in principal and interest per $ 100,000. You would pay approximately $ 18,671 in total interest over the life of the loan.
On a 30-year jumbo, the average interest rate stands at 3.05%, higher than it was at this time last week. The average rate was 3.01% on 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 3.05% 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.
On a 5/1 ARM, the average rate remained at 2.79%. The average rate was 2.79% last week. Today’s rate is currently below the 52-week high of 3.43%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.79% will pay $ 410 per month in principal and interest.
How to calculate 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.
You can use a mortgage calculator to estimate your monthly mortgage payment based on factors such as your interest rate, purchase price, and down payment.
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 depends on a number of factors including your income, debt, debt ratio, down payment, and credit rating.
You should also factor in closing costs, property taxes, insurance costs, and routine maintenance expenses.
The type of loan you choose can also affect the amount of home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited to your particular situation.
Why APR is important
The APR, or annual percentage rate, is the overall cost of your loan. It includes interest and finance charges on your loan, accounting for interest, fees, and time.
The APR is important because it can help you understand the total cost of your mortgage if you decide to keep it for the duration.