Currently, mortgage interest rates have fallen to as low as 5.5% with only a 1% origination and no discount points. Or, rates as low as 5.85% with no origination on a 30 year fixed-rate loan.
Want a 15 year loan? There is better news. It’s only 4.9% with 1% origination and a 5.20% with 0% origination.
Suddenly the 15 year payment is getting close to the payment they would have had on a 30 year in June of 2007. This is for the “closer to perfect scenario” but rates are still nearing there all time low.
Here is the better news! The average principal and interest payment on a $250,000 loan has dropped by $131.83 per month since August 2, 2007, according to calculations based on Freddie Mac averages. The trend below shows the movement in rates since January 2007.
This is big news. So if you have hesitated to list your house due to the recent bad news about the market, a home buyer can pay more for your house and have a smaller payment on the new loan. I can’t wait to prove the economists and analysts wrong when we “Knock it Out of the Park” in 2008!
*Rates are subject to change due to market fluctuations and borrower’s eligibility