15 YEAR MORTGAGE RATES DROPPING QUICKLY According to Freddie Macs weekly survey of 125 banks nationwide, the conventional 30-year fixed rate mortgage rate now average 4.23% -- near the 4-month low. Not since June have mortgage rates been as low as are they are today. Home buyers have regained some their lost purchase power from the summer; and homeowners are benefitting from a second chance to refinance. At todays rates, the typical HARP mortgage saves 27 percent. Thats a big number. Furthermore, for homeowners looking to own their home sooner, current 15-year mortgage rates are incredibly low as compared to 30-year ones. The 15-year fixed rate mortgage rate now averages 3.31% nationwide -- 0.92 percentage points lower than a comparable 30-year product which is more than double the historical interest rate spread. At todays rates, mortgage applicants using 15-year mortgages will save $50,000 in mortgage interest over the life of their loan for every $100,000 borrowed. A home buyer borrowing at the conforming loan limit of $625,500 in Orange County, California, therefore, will save more than a quarter-million dollars by going with a 15-year loan. Even if 2014 Conforming Loan Limits get congresionally-reduced, the math on the loan still works. The 15-year loan program remains a relative bargain.
Posted on: Tue, 15 Oct 2013 02:51:49 +0000
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