Low Mortgage Rates

Mortgage rates are at historic lows.

Though some buyers are waiting for home prices to hit rock bottom before entering the market, buyers that are looking to take advantage of long-term savings realize that now is the perfect time.

Mortgage rates are lower now than they have ever been in more than 40 years. 

Below is a chart that lists:

1. A sampling of recent fixed mortgage rates (May 2012, October 2011, June 2011, Mar. 2011, Sept. 2010, Feb. 2010, May 2004, Dec. 1999 and Jan. 1995).
2. How the rates would affect the monthly payments on a $350,000 home.
3. How much more you’d pay monthly if you were to buy at higher mortgage rates, compared to the Jan. 1995 rate.
4. How much more you’d pay after 30 years if you were to buy at a higher interest rate.

 

Month	1. Rate	2. Monthly payment ($350,000 home, 30 year, fixed rate)	3. Comparative savings, monthly	4. Comparative savings, 30 year
May 2012	3.84	$1,638.83	$1,215.21	$437,476
October 2011	3.94	$1,658.87	$1,195.17	$430,261
June 2011	4.50	$1,773.40	$1,080.60	$389,016
Mar. 2011	4.87	$1,851.17	$1,002.87	$361,033
Sept. 2010	4.35	$1,742.34	$1,111.70	$400,212
Feb. 2010	4.99	$1,876.74	$977.30	$351,828
May 2004	6.27	$2,159.56	$694.48	$250,012
Dec. 1999	7.91	$2,546.25	$307.79	$110,804
Jan. 1995	9.15	$2,854.04

Source: freddiemac.com
*These payments do not include taxes or insurance.

With interest rates so low, now is a great time to buy. Why wait? Timing the market is never a sure bet because you only know the market hit bottom when you see it in the rearview mirror. Taking advantage of low mortgage rates is guaranteed if you act when they are still low.

This is good news for sellers too. With low rates, more buyers will be able to enter the market.

Borrowers are advised to consult a mortgage professional to determine mortgage availability and current interest rates.