February 15, 2022 — Rates Rise Again – Forbes Advisor

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

To date, the average rate on a 30-year fixed mortgage is 4.20% with an APR of 4.17%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 3.51% with an APR of 3.55%. On a 30-year jumbo mortgage, the average rate is 4.24% with an APR of 4.28%. The average rate on a 5/1 ARM is 2.87% with an APR of 4.03%.

Related: Compare current mortgage rates

30-year fixed mortgage rates

The average rate has increased on a 30-year fixed mortgage from 4.02% a day ago to 4.20%. Today’s rate is the same as the 52-week high of 4.20%.

On a 30-year fixed mortgage, the APR is 4.17%, higher than it was last week. The APR, or annual percentage rate, consists of the interest rate of a loan and the finance charges of a loan. This is the overall cost of your loan.

According to the Forbes Advisor Mortgage Calculator, borrowers with a $100,000 30-year fixed rate mortgage will pay $489 per month in principal and interest (taxes and fees not included) at the current interest rate of 4.20%. The total interest paid over the term of the loan will be approximately $76,046.

15-Year Fixed-Rate Mortgage Rates

The average interest rate on the 15-year fixed mortgage is 3.51%. At this time last week, the 15-year fixed rate mortgage was at 3.34%. Today’s rate is above the 52-week low of 2.28%.

The APR on a 15-year fixed is 3.55%. This time last week it was 3.42%.

At the current interest rate of 3.51%, a 15-year fixed rate mortgage would cost approximately $715 per month in principal and interest per $100,000. You would pay approximately $28,767 in total interest over the life of the loan.

Giant Mortgage Rates

On a 30-year jumbo, the average interest rate stands at 4.24%, higher than it was at this time last week. The average rate was 3.97% at the same time last week. 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 4.24% will pay $491 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 $3,685, and you would pay approximately $576,658 in total interest over the life of the loan.

ARM 5/1 tariffs

On an ARM 5/1, the average rate fell slightly to 2.87% from 2.88% yesterday. The average rate was 2.85% last week. Today’s rate is currently below the 52-week high of 3.43%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.87% will pay $415 a 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

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:

  • Deposit
  • Inspection and evaluation
  • Closing costs
  • Ongoing charges
  • Home furnishings
  • Repairs and renovations

Why APR Matters

The annual percentage rate, or APR, takes into account interest, fees and time. This is the total cost of your loan and includes both the interest rate of the loan and its finance charges.

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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