July 28, 2022 — Mortgage Rates Cooling – Forbes Advisor

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The average rate for a 30-year fixed mortgage is 5.60% with an APR of 5.61%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.89% with an APR of 4.91%. On a 30-year jumbo mortgage, the average rate is 5.56% with an APR of 5.56%. The average rate on a 5/1 ARM is 4.23% with an APR of 5.81%.

Related: Compare current mortgage rates

30-Year Fixed-Rate Mortgage Rates

The average rate fell on a 30-year fixed mortgage, slipping to 5.60% from 5.76% yesterday. The 52-week high is 6.11%.

The 30-year fixed mortgage APR is 5.61%. At the same time last week, it was 5.97%. Here’s why APR is important.

At an interest rate of 5.60%, a 30-year fixed mortgage would cost $582 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. In total interest, you would pay 49,185 over the life of the loan.

15-year mortgage rates

Today, the 15-year fixed mortgage rate is at 4.89%, lower than it was a day ago. Last week it was 5.05%. Today’s rate is above the 52-week low of 4.60%.

On a 15-year fixed term, the APR is 4.91%. Last week it was 5.08%.

At the current interest rate of 4.89%, a 15-year fixed rate mortgage would cost approximately $533 per month in principal and interest per 100,000. You would pay approximately $41,781 in total interest over the life of the loan.

Giant Mortgage Rates

The average interest rate on the 30-year fixed rate jumbo mortgage is 5.56%. Last week, the average rate was 5.97%. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 6.11%.

Borrowers with a 30-year fixed rate jumbo mortgage with a current interest rate of 5.56% will pay 580 per month in principal and interest per 100,000. This means that on a loan of 750,000, the monthly payment of the principal and interest would be around 580, and you would pay around 48,992 in total interest over the life of the loan.

5/1 ARM interest rate

The average interest rate on a 5/1 ARM is 4.23%, higher than the 52-week low of 3.79%. Last week, the average rate was 4.32.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 4.23% will pay $491 per month in principal and interest.

How to calculate mortgage payments

For a large portion of the population, buying a home means working with a mortgage lender to secure a mortgage. It can be difficult to determine how much you can afford and what you are paying.

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.

Gather these data points to calculate your monthly mortgage payment:

  • The price of the house
  • The amount of your deposit
  • The interest rate
  • The term of the loan
  • All taxes, insurance and all HOA fees

What you can afford depends on a number of factors, including your income, debt, debt-to-equity ratio, down payment, and credit score.

You should also factor in 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 shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited for your particular situation.

Why APR Matters

The APR, or annual percentage rate, is the overall cost of your loan. It includes interest and finance charges for your loan, taking 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 total cost of a mortgage if you hold it for the full term. The APR will generally be higher than the interest rate, but there are exceptions.

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