I have been hearing a lot of questions lately about mortgage interest rates, so I thought information is always the best way to help people. Here are some interesting numbers for you (everything here is Principal and Interest only, Taxes and Insurance would be added in as well):
Average Rate Right Now on a 30 Year Fixed Rate Mortgage: 4.6%
Average Monthly Payment on a $250,000 home (P&I Only): $1,281.61
Average Monthly Payment on $250,000 at 4.7%: $1,296.59
Average Monthly Payment on $250,000 at 4.9%: $1,326.82
Average Monthly Payment on $250,000 at 5.1%: $1,357.37
For rates jumping 0.5% in this example means an extra $75.76 per month in payments on the same value of home. That equals $909.12 per year. Over the life of a 30 year loan, that equals $27,273.60.
I want to make sure you understand two very important takeaways from these numbers. Number one, a half of a percent increase can mean a good chunk of change over the life of your loan. Number two, we still have a long ways to go before we are above historically low interest rates. What do I mean by that? I actually started in banking in 2005. At that time people were FREAKING OUT about interest rates going as low as 5%. It was almost impossible to conceive of rates being so low. I simply point this out to say that we are still among the cheapest mortgage rates that have ever been. Getting down into the 3% range is simply something that we are very lucky to have seen. Perspective is key here.
The long and short of this is that I tell everyone I talk to that I want to add value to them. Give me the chance to prove it. If there is something that you need help with, let me see if I can help. I have even had people just start talking to me and I give advice. I love to help!
Call me today. You can reach me at 515.639.0047 or RyanLynch@KW.com. I am good at what I do, and I want to help you.
~Ryan Lynch
