August 31, 2022—Rates Rise Again – Forbes Advisor

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Today’s average rate on a 30-year fixed mortgage is 6.03%, up 0.11% from the previous week.

Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, as they typically have a lower rate than that of a 30-year, fixed-rate home loan. The average rate on a 15-year fixed mortgage is 5.23%. However, a 15-year mortgage means you are paying off the house in half the amount of time compared to a 30-year term, so your monthly payments will be higher.

If you want to refinance your existing mortgage, check out the latest mortgage refinance rates.

Related: Compare Current Mortgage Rates

Mortgage Rates for August 31, 2022

30-Year Mortgage Rates

Today, the average rate for the benchmark 30-year fixed mortgage rose to 6.03% from 5.98% yesterday. At this time last week, the 30-year fixed was 5.92%. Today’s rate is lower than the 52-week high of 6.11%.

On a 30-year fixed mortgage, the APR is 6.04%, 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 6.03%, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay $601 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be about $116,533.

15-Year Mortgage Interest Rates

The average interest rate on the 15-year fixed mortgage is 5.23%. This same time last week, the 15-year fixed-rate mortgage was at 5.13%. Today’s rate is higher than the 52-week low of 4.62%.

On a 15-year fixed, the APR is 5.26%. Last week it was 5.15%.

With an interest rate of 5.23%, you would pay $803 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $44,509 in total interest.

Jumbo Mortgage Rates

The current average interest rate on a 30-year, fixed-rate jumbo mortgage is 6.05%— 0.10% up from last week. The 30-year jumbo mortgage rate had a 52-week low of 5.19% and a 52-week high of 6.07%.

A 30-year jumbo mortgage at today’s fixed interest rate of 6.05% will cost you $603 per month in principal and interest per $100,000. On a $750,000 jumbo mortgage, the monthly principal and interest payment would be approximately $4,521.

5/1 Adjustable-Rate Mortgage Rates

Today’s average interest rate on a 5/1 ARM is 4.49%, up 0.11% from a week earlier. In the past 52 weeks, the lowest 5/1 ARM rate was 4.04% and the high was 4.49%.

Borrowers with the current rate of 4.49% will spend $506 on principal and interest per month on a $100,000 loan.

How to Calculate Mortgage Payments

Get to know your budget before you look for a house. This will give you an idea of the type of house you can afford. Start by using a mortgage calculator to get a rough estimate.

Simply input the following information:

  • Home price
  • Down payment amount
  • Interest rate
  • Loan term
  • Taxes, insurance and any HOA fees

How Much House Can I Afford?

The first step on your homebuying journey should be to calculate affordability. You’ll want to find out how much you can afford based on things like income, debt and savings.

Here are a few important factors that go into home affordability:

  • Income
  • Debt
  • Debt-to-income ratio (DTI)
  • Down payment
  • Credit score

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