Monthly Archives: October 2012
The average interest rate for a home mortgage over the past 30 years is 8.44%. The rate today is 3.6%. How do these compare? Let’s look at the monthly payment for $200,000 today at 3.6%. The principle and interest payment for a 30 year loan is $909.29 monthly. With the average rate over the past 30 years, 8.44% a home buyer making a payment of $909.29 could only borrow $118,900. The low rates have given home buyers today so much more in terms of buying power.