All, Loans
Mortgage Rates Drop To 52 Year Lows
March 26, 2009 by admin · Leave a Comment
Mortgage rates have drop to a 52-year low this week. according to a report by bankrate.com which was released Thursday, all of this, after the government announced that it would be buying more than $1 trillion in bad debt.
The average 30 year fixed rate mortgage rate dropped to 5.19% this week, down from 5.29% last week. According to Bankrate.com, the previous low was 5.28%, which was available in January and June of 2003. According to Bankrate.com, the last time mortgage rates ever hit this low was in 1956!
To help you visualize what type of savings these low rates amount to, take a look at the following example. A 30 year fixed rate mortgage averaged around 6.77% in late October, 2008. If you were to obtain a $200,000 home loan at a 6.77% rate, your monthly payments would’ve been $1,299.86. With the mortgage rates being 5.19%, that same $200,000 mortgage will cost you $1,096.99. That’s a saving of over $200 per month or $2,400 a year.
The rate for 15 year fixed rate mortgages also dropped to 4.80% from 4.86%.
