June 3, 2022 — Mortgage Rates Cooling – Forbes Advisor
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30-year fixed mortgage rates fell today.
The average rate for a 30-year fixed mortgage is 5.43%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 4.65%. The average rate on a 30-year jumbo mortgage is 5.37% and the average rate on a 5/1 ARM is 3.89%.
Related: Compare current mortgage rates
30-Year Fixed-Rate Mortgage Rates
The average rate on the benchmark 30-year fixed-rate mortgage fell to 5.43% from 5.55% yesterday. Last week, the 30-year fixed was 5.27%. The 52-week high is 5.64%.
The APR on a 30-year fixed is 5.44%. This time last week it was 5.28%. The APR is the overall cost of your loan.
At an interest rate of 5.43%, a 30-year fixed mortgage would cost $563 per month in principal and interest (taxes and fees not included) per $100,000, according to the Forbes Advisor mortgage calculator. You would pay approximately $102,826 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Rates
Today, the 15-year fixed mortgage rate is at 4.65%, which is lower than it was at the same time yesterday. Last week it was 4.60%. Today’s rate is above the 52-week low of 2.28%.
The APR on a 15-year fixed is 4.68%. This time last week it was 4.63%.
A $100,000 15-year fixed rate mortgage with a current interest rate of 4.65% will cost $773 per month in principal and interest. Over the term of the loan, you will pay $39,083 in total interest.
Giant Mortgage Rates
The average interest rate on the 30-year fixed rate jumbo mortgage is 5.37%. Last week, the average rate was 5.20%. The 30-year fixed rate on a jumbo mortgage is currently above the 52-week low of 3.03%.
Borrowers with a 30-year fixed-rate jumbo mortgage with a current interest rate of 5.37% will pay $560 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 $4,197, and you would pay approximately $761,081 in total interest over the life of the loan.
5/1 ARM interest rate
The average interest rate on a 5/1 ARM is 3.89%, higher than the 52-week low of 2.82%. Last week, the average rate was 3.90%.
Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 3.89% will pay $471 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’s within your budget.
Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.
To calculate your monthly mortgage payment, here is what you will need:
- 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
What is an APR and why is it important?
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 is important because it can help you understand the total cost of your home loan if you decide to keep it for the full term.