Don’t Risk Missing Out On Historic Mortgage Interest Rates
November 23rd, 2009 categories: For Buyers, For Homeowners, Housing Market, Mortgage Info
Something rather amazing happened earlier this month: The average interest rate on a 30-year fixed-rate mortgage fell to 4.83 percent. That’s the lowest this figure has been in six months. This rate is also barely above the record low of 4.61 percent that we saw in March.
And even if you didn’t take out a mortgage loan earlier this month, the interest rates are still at impressively low levels. Bankrate.com, an online source of financial news, reported that, according to its sources, the average rate on a 30-year fixed-rate mortgage stood at 5.02 percent on Nov. 22.
These amazing rates only reinforce my stance that this is a great time for Chicago residents to buy a condominium or single-family home in one of the city’s most desirable neighborhoods. Buyers today can find great prices on residences in Lincoln Park, Lincoln Square, Roscoe Village, Lakeview and Ravenswood. And with the low interest rates as a bonus, they’ll be paying even less for more home.
Here’s what a difference low mortgage interest rates can make: Say you take out a $300,000 mortgage loan for a condo in Lincoln Park. If you pay off that loan with a 30-year fixed-rate mortgage with an interest rate of 5.02 percent, you’ll pay $1,614.13 a month.
Now, if you take out that same mortgage loan with an interest rate of 6.3 percent, you’ll pay $1,856.92. That’s a difference of $242.79 a month, or $2,913.48 a year. It doesn’t take much number crunching to see how this can add up to a significant difference during the years in which you own your house.
No one can predict what mortgage interest rates are going to do next. They might fall lower in mid-December. Or maybe they’ll start rising early next month.
But we do know where mortgage interest rates stand today: They’re at nearly historic lows. If you do take out a mortgage loan today, you’ll know that you’re borrowing money at rates that very few homeowners have ever been lucky enough to nab. Combine that with the fact that homeowners, even in Chicago’s top neighborhoods, are still in a negotiating mood, and you have an environment that makes this one of the best times to be a homebuyer.
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Today, while I was at work, my cousin stole my iphone and tested to see if it can survive a thirty foot drop, just so she can be a youtube sensation. My apple ipad is now broken and she has 83 views. I know this is entirely off topic but I had to share it with someone!