September 30, 2021 – Mortgage rates rise – Forbes Advisor
Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.
Mortgage rates have gone up today, but if you’re interested in buying a home or refinancing your current home, you still have a chance to secure a historically low rate.
The average rate on a 30-year fixed mortgage is 3.21%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.49%. The average rate for a 30-year jumbo mortgage is 3.21% and the average rate for a 5/1 ARM is 2.79%.
Related: Compare Current Mortgage Rates
30 year fixed rate mortgages
The average rate rose on a 30-year fixed mortgage, reaching 3.21% from 3.17% yesterday. The 52 week high is 3.37%.
On a 30-year fixed mortgage, the APR is 3.38%, higher than last week. The APR, or annual percentage rate, includes the interest rate on a loan and the cost of financing a loan. This is the overall cost of your loan.
At the current interest rate of 3.21%, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay $ 433 per month in principal and interest (taxes and fees not included), says loan calculator Forbes Mortgage Advisor. You would pay around $ 55,885 in total interest over the life of the loan.
15 year fixed rate mortgages
The average interest rate on the 15-year fixed mortgage is 2.49%. At the same time last week, the 15-year fixed rate mortgage was at 2.33%. Today’s rate is higher than the 52-week low of 2.28%.
On a 15-year fixed rate, the APR is 2.75%. Last week it was 2.62%.
At the current interest rate of 2.49%, a 15-year fixed rate mortgage would cost about $ 666 per month in principal and interest per $ 100,000. You would pay approximately $ 19,937 in total interest over the life of the loan.
On a 30-year jumbo, the average interest rate is 3.21%, higher than it was at this time last week. The average rate was 3.04% 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 3.21% will pay $ 433 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 $ 3,248, and you would pay approximately $ 419,138 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM stands at 2.79%, higher than the 52 week low of 2.83%. Last week, the average rate was 2.79%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 2.79% will pay $ 410 per month in principal and interest.
Calculate your mortgage payment
For much 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 for.
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.
Collect these data points to calculate your monthly mortgage payment:
- House price
- Deposit amount
- Interest rate
- term of the loan
- Taxes, insurance and any 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
Explain the annual percentage rate
The APR, or annual percentage rate, is a calculation that includes both the interest rate on a loan and the carrying charges 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 duration. The APR will generally be higher than the interest rate, but there are exceptions.