August 12, 2022 — Mortgage Rates Rising Trend – Forbes Advisor

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Today, the average rate for a 30-year fixed mortgage is 5.56%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 4.96%. The average rate on a 30-year jumbo mortgage is 5.57% and the average rate on a 5/1 ARM is 4.22%.

Related: Compare current mortgage rates

30-year mortgage rates

Borrowers paid an average rate on a 30-year fixed rate mortgage of 5.56%. This was up from the previous week’s rate of 5.43%.

Currently, the average annual percentage rate (APR) of a 30-year fixed rate mortgage is 5.57%. This is higher than last week when the APR was 5.44%. The APR contains both mortgage interest and lender fees to help paint a more complete picture of loan costs.

To get an idea of ​​how much you’ll pay: a $100,000 mortgage with a 30-year fixed rate loan at the current average interest rate of 5.56% will cost you about $570, including principal and interest ( taxes and fees not included) each month, says the Forbes Advisor Mortgage Calculator. This represents approximately $47,457 in total interest over the life of the loan.

15-year mortgage rates

Today, the 15-year fixed mortgage rate is 4.96%, higher than it was at the same time yesterday. Last week it was 4.76%. Today’s rate is above the 52-week low of 4.60%.

On a 15-year fixed term, the APR is 4.99%. Last week it was 4.78%.

With an interest rate of 4.96%, you would pay $532 per month in principal and interest for every $100,000 borrowed. Over the term of the loan, you will pay $41,594 in total interest.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate stands at 5.57%, higher than it was at this time last week. The average rate was 5.41% 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 giant 30-year fixed rate mortgage with a current interest rate of 5.57% will pay $572 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 $572, and you would pay approximately $47,649 in total interest over the life of the loan.

5/1 Adjustable Rate Mortgage Rates

On an ARM 5/1, the average rate rose to 4.22% from 4.21% yesterday. The average rate was 4.19% last week. Today’s rate is currently below the 52-week high of 4.32%.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 4.22% will pay $490 per month in principal and interest.

Calculate your mortgage payment

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.

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:

  • The price of the house
  • The amount of your deposit
  • The interest rate
  • The term of the loan
  • All taxes, insurance and all 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.

Why APR Matters

APR, or annual percentage rate, is a calculation that includes both a loan’s interest rate and a loan’s finance charge, expressed as an annual cost over the term of the loan. In other words, it is the total cost of credit. APR stands for 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.

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