These record low mortgage rates can result in considerable savings for homeowners. To show you the savings, take the 30-year interest rate from a few months ago, 4.6%, the difference between the 4.6% and the new 3.94% would decrease your monthly payment by $40 for every $100,000 borrowed. Total your payments over the life of the loan and you would save almost $14,000 for every $100,000 borrowed. These drastic savings are why NOW is the most affordable homes have ever been. If you look at it this way, for every 1% drop in interest rates, it will decrease your monthly payment by almost 10%. Average that 10% drop over 30 years and that's a substantial savings. Take the example above. If you bought a home for $300,000, you would most likely put $50,000 or more down on the house, leaving a $250,000 mortgage. If you could like in todays rate over the previous 4.6% your savings in payment over the 30 year life of your mortgage would total nearly $35,000.
If you are a homeowner or have been thinking of buying a home, and have questions about interest rates and mortgages, send me an email or give me a call.
Matt Ullrich
303.941.2452.mobile
303.415.2251.office
ullrich@boulderco.com
RE/MAX of Boulder, INC
