Friday, January 9, 2009

Record Breaking Low Mortgage Rates Strike Again!

Photo by fpsurgeon on Flickr.

Government sponsored mortgage lender Freddie Mac said Thursday that fixed rates on 30-year mortgages averaged 5.01% for the week ending Jan. 8th. That's down from 5.10% last week and well below 5.87%, which is where the rate stood at this time last year. The 30-year fixed rate mortgage has not been lower since Freddie Mac started conducting the survey in 1971.

I know some of you may be thinking...yea, yea, yea...blah, blah, we haven't' heard this before. Well, I'm going to conduct a little math lesson to show you your cost savings if you purchase a home now.

Loan Amount =$300,000
30 year fixed rate (Current)= 5.01%
30 yr fixed rate (Oct 2008) = approx. 6.51%

Approx. 30 Yr. = 383,344 - 280,428 = $102,916
Cost Savings

Avg. Yearly Cost Savings = 102,916 / 30 = $3,431

Avg. Monthly Cost Savings = 3,431 / 12 = $286

I love math because it says it all!!

Mortgage rates dip to new all-time low [CNNMoney]

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