July 7, 2021—No Motion On Mortgage Charges – Forbes Advisor
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Mortgage rates haven’t moved today. If you are interested in buying a home or refinancing your current home, you still have the option to secure a historically low interest rate.
According to Bankrate.com, the average interest rate on a 30-year fixed-rate mortgage is currently 3.11% with an APR of 3.30%. The 15-year fixed-rate mortgage has an average interest rate of 2.42% with an APR of 2.70%. For a 30-year jumbo mortgage, the average interest rate is 3.08% with an APR of 3.19%. The average rate on a 5/1 ARM is 2.87% with an APR of 3.97%.
30-year fixed-rate mortgages
The average interest rate on a 30-year fixed-rate mortgage remained unchanged at 3.11%. Today’s rate is below the 52-week high of 3.37%.
For a 30-year fixed-rate mortgage, the APR is 3.30%, which is 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 3.11% interest, a 30-year fixed-rate mortgage would cost $ 428 per month in principal and interest (excluding taxes and fees) per $ 100,000, according to Forbes Advisor’s mortgage calculator. You would pay a total of approximately $ 53,922 in interest over the life of the loan.
15-year fixed-rate mortgages
The average interest rate on the 15-year fixed-rate mortgage is 2.42%. At the same time last week, the 15 year fixed rate mortgage was 2.45%. Today’s price is above the 52-week low of 2.32%.
The effective annual interest rate for a 15-year term is 2.70%. Last week at this time it was 2.75%.
At today’s interest rate of 2.42%, a 15-year fixed-rate mortgage would cost about 663 a month in principal and interest per $ 100,000. You would pay a total of around $ 19,345 in interest over the life of the loan.
For a 30-year jumbo, the average interest rate is 3.08%, lower than at that time last week. The average rate at this point last week was 3.14%. 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 3.08% pay 426 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 $ 3,194, and you would pay a total of about $ 400,013 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM is 2.87%, above the 52-week low of 2.85%. Last week the average rate was 3.33%.
Borrowers with a 5/1 ARM of $ 100,000 at today’s interest rate of 2.87% pay 415 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.
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 you will need the following:
- 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.
Should I get pre-approved for a mortgage?
Mortgage pre-approval is a lender’s offer to lend you money based on your financial circumstances and specific terms and conditions.
You can start the pre-approval process by gathering documents that your lender will need, including your:
- Social security card
- Current W-2 forms
- Pay slips
- Bank statements
- tax returns
The lender you choose will then guide you through the pre-approval process.