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May 30, 2022—Mortgage Rates Inch Down – Forbes Advisor

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30-year fixed mortgage rates fell today.

The average rate on a 30-year fixed mortgage is 5.27% with an APR of 5.28%, according to Bankrate.com. The 15-year fixed mortgage has an average rate of 4.60% with an APR of 4.63%. On a 30-year jumbo mortgage, the average rate is 5.20% with an APR of 5.21%. The average rate on a 5/1 ARM is 3.90% with an APR of 4.83%.

Related: Compare Current Mortgage Rates

30-Year Mortgage Rates

Today, the average rate for the benchmark 30-year fixed mortgage fell to 5.27%. One week ago, the 30-year fixed was 5.44%. The 52-week high is 5.64%.

On a 30-year fixed mortgage, the APR is 5.28%, 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.

At today’s interest rate of 5.27%, homebuyers with a 30-year fixed-rate mortgage of $100,000 will pay $$553 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. In total interest, you’d pay $99,240 over the life of the loan.

15-Year Mortgage Interest Rates

The average interest rate on the 15-year fixed mortgage sits at 4.60%. This same time last week, the 15-year fixed-rate mortgage was at 4.73%. Today’s rate is higher than the 52-week low of 2.28%.

The APR on a 15-year fixed is 4.63%. This time last week, it was 4.75%.

With an interest rate of 4.60%, you would pay $770 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $38,621 in total interest.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage is 5.20%. Last week, the average rate was 5.33%. 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 5.20% will pay $$549 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $$4,118, and you’d pay approximately $732,599 in total interest over the life of the loan.

5/1 ARM Interest Rates

On a 5/1 ARM, the average rate dropped to 3.90% from 3.91% yesterday. The average rate was 3.92% last week. Today’s rate is currently lower than the 52-week high of 3.92%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 3.90% will pay $$472 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.

Here’s what you’ll need in order to calculate your monthly mortgage payment:

  • home price
  • Down payment amount
  • interest rate
  • loan terms
  • Taxes, insurance and any HOA fees

How Much House Can I Afford?

The amount of house you can afford depends on a number of factors, including 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

Why APR Is Important

APR, or annual percentage rate, is a calculation that includes both a loan’s interest rate and a loan’s finance charges, expressed as an annual cost over the life of the loan. In other words, it’s the total cost of credit. APR accounts for interest, fees and time.

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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