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Today’s average rate on a 30-year fixed mortgage is 6.87%, up 0.16% from the previous week.
Borrowers may be able to save on interest costs by going with a 15-year fixed mortgage, as they typically have a lower rate than that of a 30-year, fixed-rate home loan. The average rate on a 15-year fixed mortgage is 5.95%. However, a 15-year mortgage means you are paying off the house in half the amount of time compared to a 30-year term, so your monthly payments will be higher.
If you want to refinance your existing mortgage, check out the latest mortgage refinance rates.
Related: Compare Current Mortgage Rates
Mortgage Rates for January 2, 2023
30-Year Fixed Mortgage Rates
Today’s average rate on a 30-year, fixed-rate mortgage is 6.87%, which is 0.16% higher than last week. In a 52-week span, the lowest rate was 6.57% while the highest was 7.41%.
The interest plus lender fees, called the annual percentage rate (APR), on a 30-year fixed mortgage is 6.89%. The APR was 6.73% last week.
To get an idea about how much you might pay in interest, consider that the current 30-year, fixed-rate mortgage of 6.87% on a $100,000 loan will cost $657 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. The total amount you’ll pay in interest during the loan’s lifespan is $136,374.
15-Year Fixed Mortgage Rates
Today, the 15-year fixed mortgage rate sits at 5.95%, higher than it was at this time yesterday. Last week, it was 5.81%. Today’s rate is higher than the 52-week low of 5.75%.
The APR on a 15-year fixed is 6.00%. It was 5.86% this time last week.
A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 5.95% will cost $841 per month in principal and interest. Over the life of the loan, you would pay $51,408 in total interest.
Jumbo Mortgage Rates
Today’s average interest rate on a 30-year fixed-rate jumbo mortgage climbed 0.13% from last week to 6.93%. That’s 0.35% higher than the 52-week low of 6.58%.
Borrowers with a 30-year, fixed-rate jumbo mortgage with today’s interest rate of 6.93% will pay approximately $661 per month in principal and interest per $100,000. On a $750,000 jumbo mortgage, the monthly principal and interest payment would be approximately $4,960.
5/1 ARM Interest Rates
Today’s average interest rate on a 5/1 ARM is 5.49%, up 0.08% from a week earlier. In the past 52 weeks, the lowest 5/1 ARM rate was 5.40% and the high was 5.60%.
Borrowers with the current rate of 5.49% will spend $567 on principal and interest per month on a $100,000 loan.
How Much House Can I Afford?
Everyone’s budget and financial goals vary. How much house you can afford comes down to 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 down the road.
Here are a few basic factors that go into what you can afford:
- Income
- Debt
- Debt-to-income ratio (DTI)
- Down payment
- Credit score
What’s an APR, and Why Is It Important?
The APR, or annual percentage rate, includes the mortgage interest rate and lender fees over the life of the loan. This is an important figure because it gives borrowers a better snapshot of what they will pay for a mortgage as it shows the total cost of a mortgage if you keep it for the entire term.
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