June 25, 2021 – No movement on mortgage rates – Forbes Advisor
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Mortgage rates haven’t budged today. If you’re interested in buying a home or refinancing your current home, you still have a chance to secure a historically low rate.
Today, the average rate for a 30-year fixed mortgage is 3.16%, according to Bankrate.com, while the average rate for a 15-year mortgage is 2.45%. On a 30-year jumbo mortgage, the average rate is 3.14% and the average rate on a 5/1 ARM is 3.33%.
30 year fixed rate mortgages
The average rate remained stable on a 30-year fixed mortgage, remaining at 3.16%. The 52 week high is 3.37%.
On a 30-year fixed mortgage, the APR is 3.33%, lower 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 3.16%, borrowers with a fixed rate mortgage of $ 100,000 over 30 years will pay 430 per month in principal and interest (taxes and fees not included), says mortgage calculator Forbes Advisor. You would pay around $ 54,902 in total interest over the life of the loan.
15 year fixed rate mortgages
Today, the 15-year fixed mortgage rate is 2.45%, the same as yesterday. Last week it was 2.45%. Today’s rate is higher than the 52-week low of 2.32%.
On a 15-year fixed rate, the APR is 2.71%. Last week it was 2.72%.
At the current interest rate of 2.45%, a 15-year fixed rate mortgage would cost about $ 664 per month in principal and interest per $ 100,000. You would pay approximately $ 19,599 in total interest over the life of the loan.
On a 30-year jumbo, the average interest rate stands at 3.14%, lower than it was at this time last week. The average rate was 3.19% 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 3.14% will pay $ 429 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 $ 3,219, and you would pay approximately $ 408,818 in total interest over the life of the loan.
The average interest rate on a 5/1 ARM stands at 3.33%, higher than the 52 week low of 2.85%. Last week, the average rate was 3.20%.
Borrowers with an ARM 5/1 of $ 100,000 with a current interest rate of 3.33% will pay 440 per month in principal and interest.
Calculation of mortgage payments
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.
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’s what you’ll 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
What you can afford depends on a number of factors including your income, debt, debt ratio, down payment, and credit rating.
You should also factor in closing costs, property taxes, insurance costs, and routine maintenance expenses.
The type of loan you choose can also affect the amount of home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited to your particular situation.
Why should I get pre-approved for a mortgage?
Pre-approval of a mortgage is a lender’s offer to lend you money based on your financial situation and specific conditions.
You can start the pre-approval process by gathering the documents your lender will need, including your:
- Social security card
- Recent W-2 forms
- Bank statements
- Income tax returns
The lender you select will then walk you through the pre-approval process.