According to Freddie Mac, 30-year-fixed-rate mortgage average fell further to 4.87 percent with an average 0.7 point for the week ending Oct. 8 from 4.94 percent last week. “Such low rates are spurring mortgage demand,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.
“Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005. Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.
Here is the break down on a purchase of $450,000
3.5% for FHA loan down payment = $15,750
1% deposit = $4,500
Loan amount = $429,750- monthly payments @ 5.5% = $2,440.77
@5.0% = $2,306.99
@4.87% = $2,272.97
That’s a difference of $167.80 a month between 5.5% and 4.87%. Which could be the difference between qualifying for your dream house or not. Remember interest rates affect your monthly payments for the life of the loan or until you refinance. These numbers do not include property taxes which are approx. 1.5% of the purchase price.
Considering the $8000 tax rebate and the drop in prices plus the end-of-the-year specials I strongly encourage buyers to get moving.
To see all the houses for sale in San Diego visit – www.SanDiegoForeclosureGuide.com
Start your search today or contact me and I will set-up a custom search for you.
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Thanks
Janet McCarthy
858-243-5719
