March 2, 2022—Mortgage Rates Hold Steady – Forbes Advisor

Mortgage rates didn’t move today. If you’re interested in buying a home or refinancing your current home, you still have a shot at locking in a historically low rate.

As of today, the average rate on a 30-year fixed mortgage is 4.29% with an APR of 4.23%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 3.48% with an APR of 3.46%. On a 30-year jumbo mortgage, the average rate is 4.31% with an APR of 4.35%. The average rate on a 5/1 ARM is 2.94% with an APR of 4.03%.

30-Year Fixed-Rate Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage remained at 4.29%. This time last week, the 30-year fixed was 4.23%. 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.

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

15-Year Fixed Mortgage Rates

The average interest rate on the 15-year fixed mortgage is 3.48%. This same time last week, the 15-year fixed-rate mortgage was at 3.45%. 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 3.43%.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 3.48% will cost 714 per month in principal and interest. Over the life of the loan, you would pay $28,502 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 4.31%, 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 4.31% will pay 495 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 3,716, and you’d pay around $587,739 in total interest over the life of the loan.

5/1 Adjustable-Rate Mortgage 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.

Calculating 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 fits into your budget.

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.

Here’s what you’ll need in order to calculate your monthly mortgage payment:

• Home price
• Down payment amount
• Interest rate
• Loan term
• 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.

Why APR Is Important

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 is important because it can help you understand the full cost of your home loan if you decide to keep it for the entire term.