August 21, 2019
Mortgage rates have fallen in the last week and this is a great thing for prospective home buyers. Oftentimes the jargon about rates can be overwhelming and seem unimpressive. What does a near 1-point drop in rates over the past year even mean? How does this make your home more affordable? Keep reading to see how we crunched the numbers.
The difference between mortgage rates today 3.75% and a year ago 4.59% (on a 30-year fixed) may not seem significant, but let us show you how the numbers work in your favor. On a $300,000 30-year fixed loan today versus last year you would save $210 per month in interest payments (nice), around $2,500 per year savings (super nice). And over the course of 30 years, you would save a whopping $75,600 (what?!) from a 0.84% mortgage rate drop year over year. Essentially for every 1% in mortgage rates moving you’re looking at a 30% swing in the cost of the home and right now that swing is totally in your favor.
Did we mention we have some great houses for sale?