Mortgage rates fell 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. Today, the average rate on a 30-year fixed mortgage is 3.16%, according to Bankrate.com, while the average rate on a 15-year mortgage is 2.45%. On a 30-year jumbo mortgage, the average rate is 3.13%, and the average rate on a 5/1 ARM is 2.76%.
Related: Compare Current Mortgage Rates
Mortgage Rates: 28th of October, 2021
30-Year Mortgage Rates
The average rate for the benchmark 30-year fixed-rate mortgage fell to 3.16%. One week ago, the 30-year fixed was 3.21%. Today’s rate is lower than the 52-week high of 3.37%. The APR on a 30-year fixed is 3.30%. This time last week, it was 3.37%. APR is the all-in cost of your loan. At today’s interest rate of 3.16%, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay $430 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay about $54,902 in total interest over the life of the loan.
15-Year Fixed-Rate Mortgage Rates
Today, the 15-year fixed mortgage rate sits at 2.45%, lower than it was one day ago. Last week, it was 2.48%. Today’s rate is higher than the 52-week low of 2.28%. On a 15-year fixed, the APR is 2.68%. Last week it was 2.71%. With an interest rate of 2.45%, you would pay $664 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $19,599 in total interest.
Jumbo Mortgage Rates
On a 30-year jumbo, the average interest rate is 3.13%, lower than it was at this time last week. The average rate was 3.18% at this time last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 2.85%. Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 3.13% will pay $429 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 $3,215, and you’d pay around $407,348 in total interest over the life of the loan.
5/1 ARM Rates
The average interest rate on a 5/1 ARM is 2.76%, higher than the 52-week low of 2.83%. Last week, the average rate was 2.80%. Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.76% will pay $409 per month in principal and interest.
How to Calculate Mortgage Payments
Mortgages and mortgage lenders are often a necessary part of purchasing a home, but it can be difficult to understand what you’re paying for—and what you can actually afford. You can use a mortgage calculator to estimate your monthly mortgage payment based on factors including your interest rate, purchase price and down payment. To calculate your monthly mortgage payment, here’s what you’ll need:
- The home price
- Your down payment amount
- The interest rate
- The loan term
- Any taxes, insurance and any HOA fees
What You Can Afford to Buy
The amount of house you can afford depends on more than just your income and debt. Here are a few primary factors that go into what you can afford:
- Income
- Debt
- Debt-to-income ratio, or DTI
- Down payment
- Credit score
Getting Preapproved for a Mortgage
Mortgage preapproval represents a lender’s offer to loan you money based on your financial circumstances and specific terms. You can start the preapproval process by gathering documents your lender will need, including your:
- Social Security card
- Recent W-2 forms
- Pay stubs
- Bank statements
- Tax returns
The lender you select will then guide you through the preapproval process.
