Freddie Mac reports that rates on fixed mortgages again fell to their lowest levels in decades this past week, with the average interest on 15-year loans dipping to 3.57 percent from 3.63 percent a week earlier, and the average interest for 30-year loans sliding to 4.17 percent from 4.24 percent. That is the lowest since 1971.
Can rates go lower? Sure they can. My crystal ball won't tell me. Maybe the economic winds will blow more towards lower rates. Maybe not.
Can you imagine buying a home for $300,000 at 4% and paying a monthly mortgage payment that includes Interest and Principal for only $1,432.25 in November 2010? Definitely more affordable today.
Can you imagine buying a home for $300,000 at 6.5% and paying a monthly mortgage payment that includes Interest and Principle for only $1,896.20 in November 2006? Not cheaper.
Drum Roll please !!! Total 30yr payment on the 4% loan = $515,608.52
Total 30yr payment on the 6.5% loan = $682.633.47
So which loan do you want? I have left out many variables that go into getting a mortgage, and I won't cover them at this writing. Please seek out a Mortgage Banking Professional for all your mortgage needs.
Till next time
NY REAL ESTATE NURSE
