It's Thursday! Time for the mortgage interest rate update from Freddie Mac! Every Thursday throughout the year, as it has since 1991, Freddie Mac publishes its report on what borrowers paid for average mortgage interest rates throughout the country over the past week. Today's average covers Monday through Friday of this past week, and includes both 30-year and 15-year loan numbers, as well as 5/1 ARMS.
The Numbers:
This past week, the average borrower on a 30-year fixed rate qualifying loan got a 3.66% annual rate of interest, and paid 0.6% as a fee for that rate. For that same loan over 15 years, the average fee was the same for a rate at 2.89%.
So what does that mean for you?
Had you secured a mortgage on your home this past week, amortizing it over the next 30 years, you'd have paid $600 as a fee for every $100,000 you borrowed. Your 3.66% rate on that loan would have resulted in a monthly payment of $458.02 for every $100,000 you borrowed. Doing the math, if you borrowed $300,000 against your home, you'd have paid $1800 as a fee at closing to get a monthly payment of $1374.07 a month for the next 360 months. If you chose the 15-year option, the same fee would have applied, but the interest rate would be less at 2.89%. For every $100,000 you borrowed, your monthly payment would be $685.30 for 180 months. Doing the arithmetic, a $300,000 loan amount would result in a payment of $2055.91. When I began selling real estate in the early 1980's, interest rates were around 18%. Your payment for that same 30-year loan at $300,000 would have been $4521.26. Wow! Kind of makes you want to buy a home. Call me as you need. I'm always here for you.
Mike Moger WK Real Estate
Office: 303.541.1920
Mobile: 303.859.4467
mmoger@wkre.com
www.MikeMoger.com
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