June 3, 2021 — Lower mortgage rates – Forbes Advisor
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For anyone in the market to buy or refinance a home, now is a good time to secure a low rate. Mortgage rates have fallen today and remain at historically low levels.
To date, the average rate on a 30-year fixed mortgage is 3.13% with an APR of 3.32%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.40% with an APR of 2.69%. On a 30-year jumbo mortgage, the average rate is 3.12% with an APR of 3.22%. The average rate on a 5/1 ARM is 3.15% with an APR of 4.00%.
30 year fixed rate mortgages
The average rate on the 30-year fixed-rate benchmark mortgage slipped to 3.13%. A week ago, the 30-year fixed rate was 3.12%. Today’s rate is below the 52-week high of 3.47%.
The 30-year fixed mortgage APR is 3.32%. At the same date last week, it was 3.30%. Here’s why the APR is important.
According to the Forbes Advisor mortgage calculator, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay $ 429 per month in principal and interest (taxes and fees not included) at the current interest rate of £ 3.00 13%. In total interest, you would pay $ 54,313 over the life of the loan.
15 year fixed rate mortgages
The average interest rate on the 15-year fixed mortgage is 2.40%. At the same time last week, the 15-year fixed rate mortgage was at 2.42%. Today’s rate is higher than the 52-week low of 2.32%.
On a 15-year fixed rate, the APR is 2.69%. Last week it was 2.70%.
At the current interest rate of 2.40%, a 15-year fixed rate mortgage would cost about $ 662 per month in principal and interest per $ 100,000. You would pay approximately $ 19,177 in total interest over the life of the loan.
On a 30-year jumbo, the average interest rate stands at 3.12%, the same as at the same date last week. The average rate was 3.10% 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 3.12% will pay $ 428 per month in principal and interest in every $ 100,000. This means that on a $ 750,000 loan, the monthly principal and interest payment would be approximately $ 3,211, and you would pay approximately $ 405,879 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM is 3.15%, higher than the 52 week low of 2.85%. Last week, the average rate was 3.14%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 3.15% will pay $ 430 per month in principal and interest.
Calculate your mortgage payment
Mortgages and mortgage lenders are often an integral part of buying a home, but it can be difficult to figure out what you’re paying and what you can actually afford.
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:
- The price of the house
- The amount of your deposit
- The interest rate
- The term of the loan
- All taxes, insurance and HOA fees
How much to save for a house
You might know you need to save enough for a down payment, but it takes more money than that to complete the home buying process. Also, after you buy, you need to furnish your new home and track potential repairs.
Here are six things to prepare to save for a home:
- Advance payment
- Inspection and assessment
- Closing costs
- Ongoing charges
- Home furnishings
- Repairs and renovations
Why APR is important
The annual percentage rate, or APR, takes into account interest, fees and time. This is the total cost of your loan and includes both the interest rate on the loan and its finance charges.
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.