The Last 30 Years of Interest Rates
Interest Rates are at historic lows. Since 1981 the average rate on a home loan was 8.75%. If you were to obtain a loan from Freddie Mac for $500,000 today, you could get an interest rate around 4%. That is less than half of the average rate for the last three decades!
Most experts agree that interest rates cannot drop much further and recommend people who are thinking about buying a home or refinancing a loan do so before they inevitably rise.
How Rates are Determined
There are many different factors that go in to determining what your mortgage rate will be.
Here are some of the variables your Mortgage Advisor will look at: interest rate, term of the loan, loan size, down payment size, your income, your debt relative to your income, your credit score and other features of the loan such as points, fees, loan structure, prepayment penalties and reserve requirements.
The Mortgage Advisors at Samuel Scott Financial Group can help you lock in a low interest for a new home, or save money by refinancing an existing mortgage.
How Much do Interest Rates Impact by Buying Power?
Todd Pianin explains what today’s low rates mean for borrowers:
• Lower monthly mortgage payments
• It’s cheaper to own a home than rent a home in San Diego
• Borrowers can get a lot more home for their money
by Interest Rate
Let the financial experts at Samuel Scott help you lock in a low interest rate and low monthly payments. With rates as low as 4%, many people are finding that it is cheaper to buy a home than to rent a home.
Looking at the Monthly Mortgage Payments by Interest Rates Chart, you can see that at 4% you could take out a $400,000 mortgage for less than $2000/month!
What Interest Rate do you Qualify for?
Fill out the short form below and we will reply within one business day with your personal rate quote. Though during normal hours we are very quick!