May 5, 2022—Mortgage Rates Cut – Forbes Advisor
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30-year fixed mortgage rates fell today.
The average rate for a 30-year fixed mortgage is 5.54% with an APR of 5.55%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.76% with an APR of 4.80%. On a 30-year jumbo mortgage, the average rate is 5.45% with an APR of 5.47%. The average rate on a 5/1 ARM is 3.78% with an APR of 4.88%.
Related: Compare current mortgage rates
30-year fixed mortgage rates
The average rate on the benchmark 30-year fixed-rate mortgage slipped to 5.54%. Last week, the 30-year fixed was 5.50%. Today’s rate is below the 52-week high of 5.58%.
The APR on a 30-year fixed is 5.55%. This time last week it was 5.51%. The APR is the overall cost of your loan.
At the current interest rate of 5.54%, borrowers with a $100,000 30-year fixed rate mortgage will pay $570 a month in principal and interest (taxes and fees not included), according to the Forbes Mortgage Calculator Advisor. The total interest paid over the life of the loan will be approximately $105,308.
15-year mortgage rates
The average interest rate on the 15-year fixed mortgage is 4.76%. At this time last week, the 15-year fixed rate mortgage was at 4.74%. Today’s rate is above the 52-week low of 2.28%.
The APR on a fixed 15-year term is 4.80%. This time last week it was 4.77%.
A $100,000 15-year fixed rate mortgage with a current interest rate of 4.76% will cost $778 per month in principal and interest. Over the term of the loan, you will pay $40,103 in total interest.
Giant Mortgage Rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 5.45%. Last week, the average rate was 5.38%. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 3.03%.
Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 5.45% will pay $565 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 $4,235, and you would pay approximately $774,571 in total interest over the life of the loan.
ARM 5/1 tariffs
On a 5/1 arm, the average rate rose to 3.78% from 3.77% yesterday. The average rate was 3.67% last week. Today’s rate is currently above the 52-week high of 3.74%.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 3.78% will pay $465 a month in principal and interest.
How to calculate mortgage payments
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’ll likely pay each month to see if it’s within your budget.
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 is what you will need:
- 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
Saving for a house
You may know you need to save enough for a down payment, but it takes more money than that to get through the home buying process. Also, after buying, you need to furnish your new home and track potential repairs.
Here are six things to prepare for when saving for a home:
- Inspection and evaluation
- Closing costs
- Ongoing charges
- Home furnishings
- Repairs and renovations
Explain the annual percentage rate of charge
APR, or annual percentage rate, is a calculation that includes both the interest rate of a loan and the finance charge of a loan, expressed as an annual cost over the life of the loan. In other words, it is the total cost of credit. APR stands for 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.