May 23, 2022—Rate Cut – Forbes Advisor
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30-year fixed mortgage rates fell today.
The average rate for a 30-year fixed mortgage is 5.47%, according to Bankrate.com, while the average rate for a 15-year mortgage is 4.79%. On a 30-year jumbo mortgage, the average rate is 5.34% and the average rate on a 5/1 ARM is 3.87%.
Related: Compare current mortgage rates
30-Year Fixed-Rate Mortgage Rates
The average 30-year benchmark fixed-rate mortgage rate fell to 5.47%. This time last week, the 30-year fixed rate was 5.49%. The 52 week low is 3.00%.
The APR on a 30-year fixed is 5.48%. This time last week it was 5.50%. The APR is the overall cost of your loan.
According to the Forbes Advisor Mortgage Calculator, borrowers with a $100,000 30-year fixed rate mortgage will pay $566 per month in principal and interest (taxes and fees not included) at the current interest rate of 5.47% . In total interest, you would pay $103,727 over the life of the loan.
15-year fixed mortgage rates
The average interest rate on the 15-year fixed mortgage is 4.79%. At this time last week, the 15-year fixed rate mortgage was at 4.85%. Today’s rate is above the 52-week low of 2.28%.
The APR on a 15-year fixed is 4.81%. This time last week it was 4.89%.
With an interest rate of 4.79%, you would pay $780 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $40,382 in total interest.
Giant Mortgage Rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 5.34%. 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 giant 30-year fixed-rate mortgage with a current interest rate of 5.34% will pay $558 a 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 $4,183, and you would pay approximately $756,036 in total interest over the life of the loan.
ARM 5/1 tariffs
On a 5/1 ARM, the average rate remained at 3.87%. The average rate was 3.84% last week. Today’s rate is currently above the 52-week high of 3.86%.
Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 3.87% will pay $470 per 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.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.
Here’s what you’ll need to calculate your monthly mortgage payment:
- Interest rate
- Deposit amount
- house price
- term of the loan
- HOA fees
How many houses can I afford?
The amount of home you can afford depends on a number of factors, including your income and debt.
Here are some basic factors that go into what you can afford:
- Your income
- Your debt
- Your debt ratio, or DTI
- Your deposit
- Your credit score
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.