It is official: mortgage rates have dropped to their lowest levels since 1951. This makes borrowing money to buy a home the cheapest it has been in the past 60 years. Whether you are buying your first home or upgrading to a home better suited for you, it is definitely the right time to buy.
By briefly looking at recent mortgage rates, potential borrowers can see that these rates really are extremely low. According to www.data360.org, the average 30 year fixed rate in September of 2006, just 5 years ago, was 6.40%. Let’s first look at a scenario using the mortgage rate from 2006:
Loan amount - $150,000
Loan Term – 30 years
Rate – September 2006 6.40%
*Repayable Amount - $337,773
Let’s look at the same scenario with TODAY’s 30 year fixed rate:
Loan amount - $150,000
Loan Term – 30 years
Rate – 4.125%
*Repayable Amount - $261,710
This scenario illustrates that a borrower would SAVE $76,063 when comparing today’s mortgage rate to the mortgage rate in 2006.
These rates will not be around forever, so if saving money is important to you, I suggest you stop by an Ocean Communities Branch near you.
*Repayable Amount – This figure assumes that a borrower will make their monthly payment on its due date each month for the entire loan term.
