Interest rates

August 25, 2022 — Mortgage Rates Rise – Forbes Advisor

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The average rate for a 30-year fixed mortgage jumped 0.32% last week to 5.96%.

Meanwhile, the average rate for a 15-year fixed mortgage rose 0.18% over the same period to 5.12%.

For existing homeowners, compare your current mortgage rates with today’s refinance rates.

Related: Compare current mortgage rates

30-year fixed mortgage interest rate

Borrowers will pay more interest this week, with the average 30-year fixed-rate mortgage rate at 5.96%, up from 5.64% a week ago. The lowest rate was 5.26% over the past 52 weeks and the highest was 6.11% over the same period.

The annual percentage rate (APR), which includes interest and all lender fees, on a 30-year fixed rate mortgage is 5.97%. The APR was 5.65% last week.

If your mortgage is $100,000 and you have a 30-year fixed rate mortgage with the current rate of 5.96%, you will pay approximately $597 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator says. This represents approximately $114,913 in total interest over the life of the loan.

15-year fixed mortgage rates

The average interest rate on the 15-year fixed mortgage is 5.12%. At this time last week, the 15-year fixed rate mortgage was at 4.94%. Today’s rate is above the 52-week low of 4.62%.

The APR on a 15-year fixed is 5.14%. It was 4.96% this time last week.

A $100,000 15-year fixed rate mortgage with a current interest rate of 5.12% will cost $797 per month in principal and interest. Over the term of the loan, you will pay $43,471 in total interest.

Giant Mortgage Rates

The current average interest rate on a 30-year fixed rate jumbo mortgage is 5.99%. Last week, the average rate was 5.67%. Over the past year, the rate on a giant 30-year mortgage has hit 6.11% and hit 5.19%.

If you lock in the current rate of 5.67% on a giant 30-year fixed-rate mortgage, you’ll pay $599 a month in principal and interest for every $100,000 of financing. This means that on a $750,000 loan, the monthly principal and interest payment would be approximately $4,492, and you would pay approximately $867,051 in total interest over the life of the loan.

5/1 ARM interest rate

Currently, the average interest rate on a 5/1 ARM is 4.38%, up from a 52-week low of 3.94%. Last week, the average rate was 4.24%.

Borrowers with a 5/1 ARM of $100,000 with a current interest rate of 4.38% will be spending $500 per month in principal and interest.

How many houses can I afford?

Everyone’s budget and financial goals vary. The price of the house you can afford depends on a number of factors, including what you earn and what you owe. You’ll also want to consider how much you want to save for retirement, school, and other expenses later.

Here are some basic factors that go into what you can afford:

  • Revenue
  • Debt
  • Debt ratio (DTI)
  • Advance payment
  • Credit score

What is an APR and why is it important?

APR, or annual percentage rate, is a calculation that includes both the interest rate of a loan and the finance charge of a loan, expressed as an annual cost over the life of the loan. In other words, it is the total cost of credit. APR stands for Interest, Fees, and Time.

Since APRs include both the interest rate and some fees associated with a home loan, the APR can help you understand the total cost of a mortgage if you hold it for the full term. The APR will generally be higher than the interest rate, but there are exceptions.