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Current Mortgage Interest Rates: December 15, 2021—Mortgage Rates Remain At Historical Lows

Mortgage rates stayed flat today. Buyers—and homeowners looking to refinance—still have the ability to pick up a historically low rate.

Today, the average rate on a 30-year fixed mortgage is 3.29%, according to Bankrate.com, while the average rate on a 15-year mortgage is 2.54%. On a 30-year jumbo mortgage, the average rate is 3.24%, and the average rate on a 5/1 ARM is 2.74%.

Loan Term Rate Change Rate Last Week
30-year fixed 3.29% 0.01% 3.28%
15-year fixed 2.54% 0.01% 2.55%
30-year jumbo 3.24% 0.01% 3.25%
5/1 ARM 2.74% 0.01% 2.75%
Source: Bankrate.com

30-Year Fixed-Rate Mortgage Rates

The average rate for the benchmark 30-year fixed-rate mortgage stayed at 3.29%. This time last week, the 30-year fixed was 3.28%. Today’s rate is lower than the 52-week high of 3.37%.

The 30-year fixed mortgage APR is 3.41%. At this time last week, it was 3.40%. Here’s why APR is important.

At today’s interest rate of 3.29%, borrowers with a 30-year fixed-rate mortgage of $100,000 will pay 437 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total interest paid over the life of the loan will be approximately $57,466.

15-Year Mortgage Rates

The average interest rate on the 15-year fixed mortgage sits at 2.54%. This same time last week, the 15-year fixed-rate mortgage was at 2.55%. Today’s rate is higher than the 52-week low of 2.28%.

On a 15-year fixed, the APR is 2.74%. Last week it was 2.74%.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 2.54% will cost 669 per month in principal and interest. Over the life of the loan, you would pay $20,361 in total interest.

Jumbo Mortgage Rates

The average interest rate on the 30-year fixed-rate jumbo mortgage is 3.24%. Last week, the average rate was 3.25%. 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 3.24% will pay 435 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 3,260, and you’d pay around $423,576 in total interest over the life of the loan.

5/1 ARM Rates

On a 5/1 ARM, the average rate remained at 2.74%. The average rate was 2.75% last week. Today’s rate is currently lower than the 52-week high of 3.43%.

Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.74% will pay 408 per month in principal and interest.

Calculate Your Mortgage Payment

For much of the population, buying a home means working with a mortgage lender to get a mortgage. It can be challenging to figure out how much you can afford and what you’re paying for.

To estimate your monthly mortgage payment, you can use a mortgage calculator. It will provide you with an estimate of your monthly principal and interest payment based on your interest rate, down payment, purchase price, and other factors.

To calculate your monthly mortgage payment, here’s what you’ll need:

  • Home price
  • Down payment amount
  • Interest rate
  • Loan term
  • Taxes, insurance, and any HOA fees

Figuring Out How Much House You Can Afford

The amount of house you can afford depends on a number of factors, including your income and debt.

Here are a few basic 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 entire term. Keep in mind that the APR is often higher than the interest rate.

Source: forbes.com ~ By: Mitch Strohm ~ Image: Canva Pro

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