July 20, 2021 – Mortgage rates drop again – Forbes Advisor
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The rate on a 30-year fixed mortgage has come down today, giving buyers and homeowners interested in refinancing a chance to lock in to a historically low rate.
To date, the average rate on a 30-year fixed mortgage is 3.03% with an APR of 3.25%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 2.37% with an APR of 2.67%. On a 30-year jumbo mortgage, the average rate is 2.98% with an APR of 3.10%. The average rate on a 5/1 ARM is 2.81% with an APR of 3.96%.
30 year fixed rate mortgages
The average rate fell on a 30-year fixed mortgage, slipping to 3.03% from 3.08% yesterday. The 52 week low is 2.83%.
The 30-year fixed mortgage APR is 3.25%. At the same date last week, it was 3.28%. 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 423 per month in principal and interest (taxes and fees not included) at the current interest rate of 3.03% . In total interest, you would pay $ 52,361 over the life of the loan.
15 year fixed rate mortgages
Today, the 15-year fixed mortgage rate is 2.37%, lower than it was yesterday. Last week it was 2.40%. Today’s rate is higher than the 52-week low of 2.32%.
On a 15-year fixed rate, the APR is 2.67%. Last week it was 2.69%.
At the current interest rate of 2.37%, a 15-year fixed rate mortgage would cost about $ 661 per month in principal and interest per $ 100,000. You would pay approximately $ 18,924 in total interest over the life of the loan.
The average interest rate on the 30-year fixed rate jumbo mortgage is 2.98%. Last week, the average rate was 3.03%. 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 2.98% will pay 421 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 3,154, and you would pay approximately $ 385,421 in total interest over the life of the loan.
On a 5/1 ARM, the average rate remained at 2.81%. The average rate was 2.82% 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 2.81% will pay 411 per month in principal and interest.
Calculate your mortgage payment
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.
Here’s what you’ll need to calculate your monthly mortgage payment:
- Interest rate
- Deposit amount
- House price
- term of the loan
- HOA fees
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 you can do to save money for a home:
- Advance payment
- Inspection and assessment
- Closing costs
- Ongoing charges
- Home furnishings
- Repairs and renovations
What is an APR and why is it important?
The APR, or annual percentage rate, is a calculation that includes both the interest rate on a loan and the finance charge 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 entire term. The APR will generally be higher than the interest rate, but there are exceptions.