Although still quite low, interest rates have climbed again. Wednesday Freddie Mac put the 30 year fixed rate at 4.40%. Last week they reported the rate at 4.39%, and two weeks ago at 4.17%. While 4.40% is still an extremely attractive rate, we believe it shows a trend, one that will likely continue.
The 15 year fixed rate mortgage loan interest rate has also climbed; from 3.57% a few weeks ago to 3.77% last week. Again, although higher than recent rates, these are still VERY good interest rates; in fact they remain historically low since April this year.
Source: San Francisco Chronicle read MORE
What is this in real world numbers? For a home selling for $250,000 an increased interest rate from 4.17% to 4.40% could cost you an additional $12,144.86 in interest alone. Other costs will likely increase also, costs such Mortgage Insurance are directly tied to the pay-back amount, not just the purchase price of your new home. This scenario is an example only (but accurate). Your savings and costs depend on many variables such as down payment, term on loan, late payments, impounds, etc.
Like to know more? You are welcomed to use our mortgage calculators at Yuba Sutter Homes and Loans.com. To find the numbers for your situation call (530 315-2808) or email us today. We can figure in the variables that only an experienced professional can provide.
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