Interest rates

July 20, 2022—Rates have risen – Forbes Advisor

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Today’s average rate on a 30-year fixed mortgage is 5.93, up 0.13 from the previous week.

Borrowers may be able to save on interest charges by switching to a 15-year fixed rate mortgage, as they generally have a lower rate than a 30-year fixed rate mortgage. The average rate for a 15-year fixed mortgage is 5.05. However, a 15-year mortgage means you pay off the house in half the time of a 30-year term, so your monthly payments will be higher.

Related: Compare current mortgage rates

30-Year Fixed-Rate Mortgage Rates

Today, the average benchmark 30-year fixed mortgage rate rose to 5.93 from 5.82 yesterday. At this time last week, the 30-year fixed rate was 5.80. Today’s rate is below the 52-week high of 6.11%.

On a 30-year fixed mortgage, the APR is 5.94, higher than it was last week. The APR, or annual percentage rate, consists of the interest rate of a loan and the finance charges of a loan. This is the overall cost of your loan.

According to the Forbes Advisor Mortgage Calculator, homebuyers with a $100,000 30-year fixed rate mortgage will pay $591 per month in principal and interest (taxes and fees not included) at the current interest rate of 5. 93. You will pay approximately 50,633 interest in total over the life of the loan.

15-year mortgage rates

Today, the 15-year fixed mortgage rate is 5.05, higher than it was a day ago. Last week it was 4.95. Today’s rate is above the 52-week low of 4.60%.

The APR on a fixed 15 year is 5.08. This time last week it was 4.98.

At the current interest rate of 5.05, a 15-year fixed rate mortgage would cost approximately $537 per month in principal and interest per $100,000. You would pay approximately 42,343 interest in total over the life of the loan.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate stands at 5.94, higher than it was at this time last week. The average rate was 5.81 at the same time last week. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 6.11%.

Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 5.94 will pay $592 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 $592, and you would pay approximately $50,730 in total interest over the term of the loan.

5/1 Adjustable Rate Mortgage Rates

On an ARM 5/1, the average rate rose to 4.32 from 4.26 yesterday. The average rate was 4.26 last week. Today’s rate is currently a 52-week high.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 4.32 will pay $496 per month in principal and interest.

How to calculate mortgage payments

For a large portion 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.

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.

Gather these data points to calculate your monthly mortgage payment:

  • Interest rate
  • Deposit amount
  • house price
  • term of the loan
  • Taxes
  • Insurance
  • HOA fees

What you can afford depends on a number of factors, including your income, debt, debt-to-equity ratio, down payment, and credit score.

You should also factor in closing costs, property taxes, insurance costs and ongoing maintenance costs.

The type of loan you choose can also affect how much home you can afford. When shopping for a loan, consider whether a conventional mortgage, FHA loan, VA loan, or USDA loan is best suited for your particular situation.

What is APR?

The APR, or annual percentage rate, is the overall cost of your loan. It includes interest and finance charges for your loan, taking 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 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.