Mortgage Rates for Home Loans FALL for Seventh Straight Week
The average rate for a 30-year loan has slipped to 4.55% down from 4.60%. The 15 year rate has dropped to 3.74% down From 3.78%.
What the low interest rates mean for the buyer is:
A $250,000 mortgage at 5.05% the payment for a 30 year amortiized loan is $1,349.
The same $250,000 mortgage with at 4.55% is $1,274. ($76 per month less)
That $76 will support a $15,000 mortgage.
So by getting a 1/2% lower interest rate you would be able to increase your mortgage to $265,000 and have the same mothly payment.
With the same scenario a $350,000 at a 1/2% lower interest rate will support a $20,698 larger mortgage. So you could increase your buying power from $350,000 to $370,698 and have the same monthly payment for the 30 year life of your loan.
With low interest rates and house prices down NOW is the time to take advantage of the opportunity to buy real estate.