March 1, 2022—Rates Trend Higher – Forbes Advisor

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The rate on a 30-year fixed mortgage increased today. Yet rates are still historically low overall.

The average rate on a 30-year fixed mortgage is 4.29%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 3.49%. The average rate on a 30-year jumbo mortgage is 4.32%, and the average rate on a 5/1 ARM is 2.94%.

Related: Compare Current Mortgage Rates

30-Year Fixed-Rate Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage inched up to 4.29%. This time last week, the 30-year fixed was 4.22%. The 52-week low is 3.00%.

On a 30-year fixed mortgage, the APR is 4.23%, higher than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.

At today’s interest rate of 4.29%, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay 494 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay around $77,942 in total interest over the life of the loan.

15-Year Fixed-Rate Mortgage Rates

The average interest rate on the 15-year fixed mortgage sits at 3.49%. This same time last week, the 15-year fixed-rate mortgage was at 3.46%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 3.46%. This time last week, it was 3.45%.

With an interest rate of 3.49%, you would pay 714 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $28,590 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 4.32%, higher than it was at this time last week. The average rate was 4.25% at this time last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 3.03%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 4.32% will pay 496 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around 3,720, and you’d pay around $589,326 in total interest over the life of the loan.

5/1 ARM Rates

On a 5/1 ARM, the average rate stayed at 2.94%. The average rate was 2.93% last week. Today’s rate is currently lower than the 52-week high of 3.43%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.94% will pay 418 per month in principal and interest.

Calculate Your Mortgage Payment

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 fits into your budget.

You can use a mortgage calculator to estimate your monthly mortgage payment based on factors including your interest rate, purchase price and down payment.

To calculate your monthly mortgage payment, here’s what you’ll need:

  • The home price
  • Your down payment amount
  • The interest rate
  • The loan term
  • Any taxes, insurance and any HOA fees

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

You also want to consider closing costs, property taxes, insurance costs and ongoing maintenance expenses.

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

What Is APR?

Annual percentage rate, or APR, takes into account interest, fees and time. It’s the total cost of your loan and includes both the loan’s interest rate and its finance charges.

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.

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