Headline says it all — mortgages are at their lowest rate since most organizations started recording them. For example, says Bankrate, the 30-year fixed-rate mortgage fell to 4.32 percent, “the lowest rate level the fixed rate has reached since Bankrate started the weekly mortgage survey 26 years ago.”
And Freddie Mac says its average 30-year fixed-rate mortgage was 4.09 percent. Again, the lowest level evah.
What does that mean? Fun with math!
- 30-year loan on $250K home at 4.32%: $196,442 total interest
- 30-year loan on $250K home at 4.52% (which was the rate a year ago):
$207,087 total interest ($10,645 more)
- 30-year loan on $250K home at 5.97% (which was the rate five years ago):
$287, 861 total interest ($91,419 more!)