Mortgage rates have been historically low for some time now. If you've been paying attention to mortgage rates, this may seem underwhelming to you because people have been saying it for the past few years. However, here are some visuals to help bring perspective.
***Disclaimer: this information can vary depending on your situation and the type of mortgage you choose.
Above, you can see that in the past year the highest interest rate was 4.6 percent. Currently, we are at a around 3.6 percent. Let's take a look at buying a $200,000 house with a $160,000 mortgage. At 4.6%, the total interest over 30 years would be $135,283.16 with a monthly payment of $1,028.56. At 3.6%, the total interest over 30 years would be $101,875.72 and the monthly payment would be $935.77. At current interest rates, you would save $33,407.44 over the life of the loan and 92.79 monthly.
Let's take a look at what interest rates have been over the past 10 years.
In the past 10 years, the highest rate has been 6.8%. At 6.8%, the total interest over 30 years would be $215,508.91 with a monthly payment of $1,251.41. That means, an interest rate of 3.6% would save you $113,633.19 over the life of the loan and $315.64 monthly.
Interest rates continuously change so it's difficult to know what will happen in the future. If you have any questions, contact me at 540-246-9067.