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June 23, 2022—Rates Decline – Forbes Advisor

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30-year fixed mortgage rates fell today.

The average rate on a 30-year fixed mortgage is 5.95%, according to Bankrate.com. On a 15-year fixed mortgage, the average rate is 5.13%. The average rate on a 30-year jumbo mortgage is 5.81%, and the average rate on a 5/1 ARM is 4.26%.

Related: Compare Current Mortgage Rates

30-Year Fixed-Rate Mortgage Rates

The average rate fell on a 30-year fixed mortgage, slipping to 5.95% from 6.11% yesterday. Today’s rate is lower than the 52-week high of 6.11%.

On a 30-year fixed mortgage, the APR is 5.96%, lower 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.

According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay $596 per month in principal and interest (taxes and fees not included) at today’s interest rate of 5.95%. The total interest paid over the life of the loan will be approximately $114,682.

15-Year Mortgage Interest Rates

The average interest rate on the 15-year fixed mortgage is 5.13%. This same time last week, the 15-year fixed-rate mortgage was at 5.29%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 5.16%. Last week it was 5.31%.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 5.13% will cost $798 per month in principal and interest. Over the life of the loan, you would pay $43,565 in total interest.

Jumbo Mortgage Rates

On a 30-year jumbo, the average interest rate is 5.81%, lower than it was at this time last week. The average rate was 5.89% at this time last week. The 30-year fixed rate on a jumbo mortgage is currently higher than the 52-week low of 3.03%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 5.81% will pay $587 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 $4,405, and you’d pay around $835,953 in total interest over the life of the loan.

5/1 ARM Interest Rates

The average interest rate on a 5/1 ARM sits at 4.26%, higher than the 52-week low of 2.82%. Last week, the average rate was 4.09%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 4.26% will pay $493 per month in principal and interest.

Calculating Mortgage Payments

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 fits into your budget.

You can use a mortgage calculator to estimate your monthly mortgage payment based on factors including your interest rate, purchase price and down payment.

Gather these data points to calculate your monthly mortgage payment:

  • interest rate
  • Down payment amount
  • home price
  • loan terms
  • tax
  • Insurance
  • HOA fees

Figuring Out How Much House You Can Afford

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:

  • Your income
  • Your debt
  • Your debt-to-income ratio, or DTI
  • Your down payment
  • Your credit score

How Do I Get 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.

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