John Collinge Realtor RE/MAX Dynamic Properties
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30 Year Mortgage Rates Tick Up to 4.0 %

30 Year Mortgage Rates Tick Up to 4.0 %

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As of today 2/19/2015 a 30 Year Conventional Mortgage is at 4.0 %. It is slowly trending higher but remains extremely attractive. Imagine paying over 18% interest on a 30-year fixed mortgage.

It’s almost unthinkable. But that was the reality for home buyers in October 1981 – a year when the average rate was almost 17%. Think about it. You buy your dream home in 1981 and you pay $200,000.00. After a 10% down payment and adding in for some property insurance, your monthly payment would be right at about $2900.00 per month. A $200,000.00 home today with  10% down and PMI of .52 at the current rate of 4.0% would come in at about $1200.00 per month.
See Chart Below Courtesy of Wells Fargo:
Interest Rate          APR
30-Year Fixed Rate                4.000%          4.030%
30-Year Fixed-Rate FHA         3.750%         4.771%
15-Year Fixed Rate                3.375%          3.481%
7/1 ARM                               3.375%          3.144%
5/1 ARM FHA                        3.375%         3.572%
Larger Loan Amounts in Eligible Areas – Conforming and FHA.
30-Year Fixed Rate               4.125%           4.125%
30-Year Fixed-Rate FHA        3.750%          4.756%
7/1 ARM                              3.625%           3.236%
Courtesy of Wells Fargo
Jumbo Loans– Amounts that exceed conforming loan limits
30-Year Fixed Rate               4.000%           4.016%
7/1 ARM                              3.250%           3.063%
http://www.freddiemac.com/pmms/pmms30.htm  Click this link to see rates for the past 30 years.
John

 

John Collinge is an Anchorage Realtor
907-440-2785