Interest rates

June 7, 2022 — Mortgage Rates Jump – Forbes Advisor

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30-year fixed mortgage rates rose today.

The average rate for a 30-year fixed mortgage is 5.57% with an APR of 5.58%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.75% with an APR of 4.77%. On a 30-year jumbo mortgage, the average rate is 5.51% with an APR of 5.52%. The average rate on a 5/1 ARM is 3.90% with an APR of 4.88%.

Related: Compare current mortgage rates

30-year fixed mortgage rates

The average rate on the benchmark 30-year fixed-rate mortgage rose slightly to 5.57% from 4.67% yesterday. A week ago, the 30-year fixed was 5.42%. The 52 week low is 3.00%.

The 30-year fixed mortgage APR is 5.58%. At the same time last week, it was 5.43%. Here’s why APR is important.

According to the Forbes Advisor Mortgage Calculator, borrowers with a $100,000 30-year fixed rate mortgage will pay $572 per month in principal and interest (taxes and fees not included) at the current interest rate of 5.57% . The total interest paid over the term of the loan will be approximately $105,988.

15-year mortgage interest rate

Today, the 15-year fixed mortgage rate is 4.75%, higher than it was a day ago. Last week it was 4.66%. Today’s rate is above the 52-week low of 2.28%.

The APR on a 15-year fixed is 4.77%. This time last week it was 4.69%.

At the current interest rate of 4.75%, a 15-year fixed rate mortgage would cost approximately $778 per month in principal and interest per $100,000. You would pay approximately $40,010 in total interest over the life of the loan.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate stands at 5.51%, higher than it was at this time last week. The average rate was 5.33% at the same time last week. 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 5.51% will pay $568 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 $4,263, and you would pay approximately $784,725 in total interest over the life of the loan.

5/1 Adjustable Rate Mortgage Rates

On an ARM 5/1, the average rate fell to 3.90% from 3.91% yesterday. The average rate was 3.89% last week. Today’s rate is currently below the 52-week high of 3.92%.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 3.90% will pay $472 per month in principal and interest.

How to calculate mortgage payments

Mortgages and mortgage lenders are often a necessary part of buying a home, but figuring out what you’re paying and what you can actually afford can be tricky.

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.

Gather these data points to calculate your monthly mortgage payment:

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

Saving 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:

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

Explain the annual percentage rate of charge

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.

The APR can help you understand the total cost of a mortgage if you keep it for the full term. Keep in mind that the APR is often higher than the interest rate.