Mortgage interest rates have fallen over the past couple of months for home loans. While 30 year fixed rates peaked around the mid-6%’s for Conventional and FHA loans, we have now seen them recede to the mid-5%’s. Today, mortgage interest rates are at 5.50%.
What does that mean for you?
It means if you plan on having a $200,000 mortgage on a 30 year fixed, your payment would be approximately $130 a month less today then if you would have purchased a home two months ago. That’s an annual savings of approximately $1,600.
The Federal Government recently took over “sponsorship” of the mortgage agencies, Fannie Mae and Freddie Mac, and this has been a large contributor to the recent drop in mortgage interest rates.
It’s a great time to get out there and start looking at buying a home!
Nick Sivertsen, Summit Mortgage nick@nicksivertsen.com
