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Currently, the average rate on a 30-year fixed mortgage is 6.58%, compared to 6.67% a week ago.
For borrowers who want to pay off their home faster, the average rate on a 15-year fixed mortgage is 5.87%, down 0.16% from the previous week.
Homeowners who want to lock in a lower rate by refinancing should compare their existing mortgage rate with current market rates to make sure it’s worth the cost to refinance.
Related: Compare Current Mortgage Rates
Mortgage Rates for January 12, 2023
30-Year Mortgage Rates
Borrowers paid an average rate on a 30-year fixed-rate mortgage of 6.58%. This was down from the previous week’s rate of 6.67%.
Currently, the average annual percentage rate (APR) on a 30-year fixed-rate mortgage is 6.59%. This is lower than last week when the APR was 6.68%. The APR contains both mortgage interest and the lender fees to help give a more complete picture of loan costs.
To get an idea how much you’ll pay: a $100,000 mortgage with a 30-year fixed-rate loan at the current average interest rate of 6.58% will cost you about $637, including principal and interest (taxes and fees not included) each month, the Forbes Advisor mortgage calculator shows. That’s around $129,442 in total interest over the life of the loan.
15-Year Fixed Mortgage Rates
Today’s 15-year, fixed-rate mortgage is 5.87%, down 0.16% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 6.03%.
The APR on a 15-year fixed is 5.89%. It was 6.06% a week earlier.
A 15-year, fixed-rate mortgage with today’s interest rate of 5.87% will cost $837 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $50,633 in total interest.
Jumbo Mortgage Rates
The current average interest rate on a 30-year, fixed-rate jumbo mortgage is 6.58%— 0.07% down from last week.
A 30-year jumbo mortgage at today’s fixed interest rate of 6.58% will cost you $637 per month in principal and interest per $100,000. On a $750,000 jumbo mortgage, the monthly principal and interest payment would be approximately $4,785.
5/1 ARM Interest Rates
On a 5/1 ARM, the average rate remained at 5.50%. The average rate was 5.49% last week.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 5.50% will pay $568 per month in principal and interest.
How to Calculate Mortgage Payments
One of the first steps in buying a house is budgeting. To get a rough idea of how much owning a home will cost, start by using a mortgage calculator to crunch the numbers.
Just input the following data to get an idea of how much a house will cost:
- Home price
- Down payment amount
- Interest rate
- Loan term
- Taxes, insurance and any HOA fees
How Much House Can I Afford?
The first step on your homebuying journey should be to calculate affordability. You’ll want to find out how much you can afford based on things like income, debt and savings.
Here are a few important factors that go into home affordability:
- Income
- Debt
- Debt-to-income ratio (DTI)
- Down payment
- Credit score
