Mortgage Rates at a 4 year Low!!!
This post was written by georgine on December 12, 2008
Posted Under: Buyer Resources, Market Data, Philadelphia Insider
Posted Under: Buyer Resources, Market Data, Philadelphia Insider
Besides it being a Buyer’s Market, the existence of a once in a lifetime interest-free $7500 loan, and a for a limited time a free home warranty from the Atacan Group, now, as if you needed another incentive to buy a house, rates are at an average super low, 5.5%. Never in all my years in real estate as I seen a better time to buy.
This raises another question, if I am not ready to move yet, Should I Refianace? This chart below courtesy of Dr. Dan Taylor, CFA should be of great assistance in helping you make a determination.
| Original loan: $150,000 | ||||||
| Refinancing amount: $148,638 | ||||||
| Loan maturity (years): | 28 | 30 | 30 | 30 | 30 | 30 |
| Interest rate: | 8% | 7.5% | 7% | 6.5% | 6% | 5.5% |
| Monthly payment: | $1,100.65 | $1,039.30 | $988.89 | $939.49 | $891.16 | $843.95 |
| Total payments: | $369,818 | $374,147 | $356,001 | $338,217 | $320,817 | $320,817 |
| Total interest expense: | $221,180 | $225,509 | $207,363 | $189,580 | $172,180 | $155,184 |
| Estimated closing costs: | 0 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 |
| Payment savings: | 0 | $61.35 | $111.75 | $161.15 | $209.49 | $256.70 |
| Months to recoup: | 0 | 41 | 23 | 16 | 12 | 10 |
Reader Comments
I have never seen rates this low ever.
You should lock now and do it! You can always refi if it goes to 4%.
I know. I am making a shirt and will wear this table…