’30-year Mortgage Rates Fall Below 4% for the First Time’
For the first time ever, 30-year mortgage rates fall below 4%. Not to be confused with 15year fixed-rates which hit a 50 year low of 3.26% a few weeks ago, the 30-year mortgages dropped below 4% for the first time in history. The interest rate loan fell to 3.94% this week, the lowest rate since Freddie Mac began tracking it.
These record low mortgage rates can result in considerable savings for homeowners. To show you the savings, take the 30-year interest rate from a few months ago, 4.6%, the difference between the 4.6% and the new 3.94% would decrease your monthly payment by $40 for every $100,000 borrowed. Total your payments over the life of the loan and you would save almost $14,000 for every $100,000 borrowed.
These drastic savings are why NOW is the most affordable homes have ever been. If you look at it this way, for every 1% drop in interest rates, it will decrease your monthly payment by almost 10%. Average that 10% drop over 30 years and that’s a substantial savings. Take the example above. If you bought a home for $300,000, you would most likely put $50,000 or more down on the house, leaving a $250,000 mortgage. If you could like in todays rate over the previous 4.6% your savings in payment over the 30 year life of your mortgage would total nearly $35,000.
If you have been thinking about buying a home or re-financing, I would like to hear from the public how the low mortgage rates have affected you. Comments?
’30-year Mortgage Rates Fall Below 4% for the First Time’
These drastic savings are why NOW is the most affordable homes have ever been. If you look at it this way, for every 1% drop in interest rates, it will decrease your monthly payment by almost 10%. Average that 10% drop over 30 years and that’s a substantial savings. Take the example above. If you bought a home for $300,000, you would most likely put $50,000 or more down on the house, leaving a $250,000 mortgage. If you could like in todays rate over the previous 4.6% your savings in payment over the 30 year life of your mortgage would total nearly $35,000.
If you have been thinking about buying a home or re-financing, I would like to hear from the public how the low mortgage rates have affected you. Comments?
Bill Allen, re/max of boulder, ballen@boulderco.com