April 5, 2018 by Gary Prager
If you’ve been on the fence trying to decide whether to buy a home or refinance to a lower rate, now might be the time to act. Most experts believe mortgage rates will continue to rise in 2018. According to Freddie Mac research, the average 30-year fixed mortgage rate
was 3.90% APR1
at the end of 2017 but will steadily increase to 4.90% APR1
by the end of 2018. As of today, the average 30-year fixed rate mortgage is already 4.50% APR1
nationally. So what does this all mean for you?
As an example, consider the purchase of a $250,000 home financed with a conventional, fixed rate mortgage for 30 years with 10% down payment. Compare the monthly principal and interest payments: at 4.50% APR1 your mortgage payment would be $1,140.04 per month, compared to $1,194.14 at 4.90% APR1, saving you over $50 per month. However, when you add up interest saved over the life of your loan, you will have pocketed an additional $19,473.54.
Please note, the rate and terms used in this example are for illustrative purposes only.
are subject to change and the actual terms you receive will depend upon your individual circumstances, including but not limited to creditworthiness, property type, and loan-to-value ratio.
Mortgage rates are already increasing faster than expected; don’t get caught waiting and miss out on a substantial savings. If you’re looking to purchase a home, refinance the one you’re in or even move from an adjustable rate to a fixed rate mortgage, we can help.
1APR = Annual Percentage Rate