Mortgage Rates and Interest Payments are Falling
Posted by Brian Sims on Wednesday, August 24th, 2011 at 4:17pm.Amid the volatile stock market, economic gridlock in Washington and stagnant home sales, mortgage rates have continued to fall and save buyers thousands of dollars in interest.
Below is a chart showing how mortgage rates in 2011 have continued to drop for 30-year and 15-year fixed mortgages. Data is courtesy of www.FreddieMac.com
So, how does this translate into real numbers for your budget? Consider this, an average home buyer who purchases a $250,000 home today will save nearly $50,000 in interest payments on a 30 year mortgage versus a buyer who bought the same house in February for the same price.
Mortgage rates in February were about 5.05% and mortgage rates today are about 4.15%. A buyer who makes a 3.5% down payment will save about $130 per month on their mortgage today. That translates into $46,000 in savings over the course of a 30 year mortgage!
The saying in real estate "you make your money when you buy" is more true today than ever. If you or someone you know is looking for a great deal on a home, then please give me a call at 678-739-8686 or drop me an email at Brian@HirshRealEstate.com.
I would love to earn your business and help you take advantage of this market!
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