January 17, 2022 — Mortgage Rates Rise Slightly – Forbes Advisor

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For anyone in the market looking to buy or refinance a home, now is a good time to lock in a low rate. Mortgage rates rose today, but overall rates are at historic lows.

The average rate for a 30-year fixed mortgage is 3.54%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 2.85%. The average rate on a 30-year jumbo mortgage is 3.51% and the average rate on a 5/1 ARM is 2.77%.

Related: Compare current mortgage rates

30-year mortgage rates

The average 30-year benchmark fixed rate mortgage rate rose slightly to 3.54%. Last week, the 30-year fixed was 3.52%. Today’s rate is the same as the 52-week high of 3.54%.

The APR on a 30-year fixed is 3.61%. This time last week it was 3.62%. The APR is the overall cost of your loan.

At an interest rate of 3.54%, a 30-year fixed mortgage would cost $451 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. You would pay approximately $62,461 in total interest over the life of the loan.

15-year mortgage rates

Today, the 15-year fixed mortgage rate is 2.85%, the same as yesterday. Last week it was 2.79%. Today’s rate is above the 52-week low of 2.28%.

On a 15-year fixed term, the APR is 3.02%. Last week it was 2.97%.

At the current interest rate of 2.85%, a 15-year fixed rate mortgage would cost approximately $683 per month in principal and interest per $100,000. You would pay approximately $23,010 in total interest over the life of the loan.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate stands at 3.51%, lower than it was at the same time last week. The average rate was 3.51% at the same time last week. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 2.85%.

Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 3.51% will pay $450 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 $3,372, and you would pay approximately $463,928 in total interest over the life of the loan.

5/1 ARM interest rate

On an ARM 5/1, the average rate rose to 2.77% from 2.75% yesterday. The average rate was 2.74% last week. Today’s rate is currently below the 52-week high of 3.43%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.77% will pay $409 a month in principal and interest.

Calculation of 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.

To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price and other factors.

To calculate your monthly mortgage payment, here is what you will need:

  • house price
  • Deposit amount
  • Interest rate
  • term of the loan
  • Taxes, insurance and all HOA fees

How much to save 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:

  • Deposit
  • Inspection and evaluation
  • Closing costs
  • Ongoing charges
  • Home furnishings
  • Repairs and renovations

Get pre-approved for a mortgage

Getting pre-approved for a mortgage can help you through the home buying process. A mortgage pre-approval is a lender’s offer to lend you money. It can help you appear more attractive to sellers.

To get pre-approved for a mortgage, start by gathering documents. You will need your Social Security card, W-2 forms, pay stubs, bank statements, tax returns, and any other documents required by your lender.

The lender you select will guide you through the pre-approval process.

About Ernest Decker

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