Mortgage Rates Lowest in 12 Months
Recently, according to Freddie Mac, the average interest rate for a 30-year fixed mortgage dropped to 4.35% with 0.5% in fees and points. This is the lowest rates have been since February 8, 2018 when the average rate was 4.32%.
This is great news for potential home buyers as an interest rate drop of .5% or more can have a meaningful impact on affordability. A drop of .5% will allow buyers to borrow up to 5% more for the same payment.
The monthly principal and interest payment for a $285,000 30-year fixed rate loan at 5.0% is $1530.
The monthly principal and interest payment for a $300,000 30-year fixed rate loan at 4.5% is $1520.
So, your payment is $10 less per month to borrow $15,000 more at the lower rate.
This is also great news for new home buyers who purchased their home over the last six months or so. Rates were substantially higher during this time period and the majority of those recent buyers would benefit from refinancing their existing mortgage to a lower rate.
Click here to Get a Custom Rate and Payment Quote today or call us at 708-531-8388. We are happy to provide a no-cost, no-obligation whatsoever rate quote to help you determine whether buying or refinancing make sense for you.
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