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Today’s average rate on a 30-year fixed mortgage is 5.63%, down 0.37% from the previous week.
Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, as they typically have a lower rate than that of a 30-year, fixed-rate home loan. The average rate on a 15-year fixed mortgage is 4.89%. However, a 15-year mortgage means you are paying off the house in half the amount of time compared to a 30-year term, so your monthly payments will be higher.
Related: Compare Current Mortgage Rates
30-Year Mortgage Rates
The average rate fell on a 30-year fixed mortgage, slipping to 5.63% from 5.68% yesterday. The 52-week low is 3.00%.
On a 30-year fixed mortgage, the APR is 5.65%, lower than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.
According to the Forbes Advisor mortgage calculator, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay $576 per month in principal and interest (taxes and fees not included) at today’s interest rate of 5.63%. In total interest, you’d pay $107,350 over the life of the loan.
15-Year Fixed-Rate Mortgage Rates
The average interest rate on the 15-year fixed mortgage sits at 4.89%. This same time last week, the 15-year fixed-rate mortgage was at 5.20%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed, the APR is 4.92%. Last week it was 5.22%.
At today’s interest rate of 4.89%, a 15-year fixed-rate mortgage would cost approximately $785 per month in principal and interest per $100,000. You would pay around $41,314 in total interest over the life of the loan.
Jumbo Mortgage Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage is 5.50%. Last week, the average rate was 5.89%. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 3.03%.
Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 5.50% will pay $568 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 around $4,258, and you’d pay roughly $783,030 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Rates
On a 5/1 ARM, the average rate inched down to 4.26% from 4.27% yesterday. The average rate was 4.28% last week. Today’s rate is currently lower than the 52-week high of 4.32%.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 4.26% will pay $493 per month in principal and interest.
How to Calculate Mortgage Payments
Mortgages and mortgage lenders are often a necessary part of purchasing a home, but it can be difficult to understand what you’re paying for—and what you can actually afford.
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:
- Interest rate
- Down payment amount
- Home price
- Loan term
- HOA fees
What You Can Afford to Buy
The amount of house you can afford depends on more than just your income and debt.
Here are a few primary factors that go into what you can afford:
- Your income
- Your debt
- Your debt-to-income ratio, or DTI
- Your down payment
- Your credit score
Explaining Annual Percentage Rate
Annual percentage rate, or APR, takes into account interest, fees and time. It’s the total cost of your loan and includes both the loan’s interest rate and its finance charges.
APR is important because it can help you understand the complete cost of your home loan if you decide to keep it for the entire term.