You can borrow more money now thanks to the low interest rates!

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.

Posted on October 8, 2012, in Uncategorized. Bookmark the permalink. Leave a comment.

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