Long-term mortgage rates fell for the third straight week as Freddie Mac reported 3.66 percent as the average on a 30-year fixed-rate mortgage on Thursday. Rates were 4.41 percent a year ago.
Freddie Mac’s chief economist Frank Nothaft attributed the drop to falling oil prices and dropping long-term treasury yields, but noted the strength of the economy and the low unemployment rate of 5.6 percent, the lowest since June 2008.
Given the disparity between current rates and rates last January, UrbanTurf decided to take a look at what the difference in monthly mortgage payments would be for someone that purchased a home last year versus someone buying the same house at today’s rates. If you bought a house around this time last year, cover your ears.
To calculate the below, we looked at purchasing a $500,000 house with a 20 percent down payment, with taxes and insurance omitted. For a 30-year fixed-rate mortgage at the average rate, here’s what you’d save:
January 2014: The average mortgage rate was 4.41 percent.
Monthly mortgage payment: $2,206
Total outlay on mortgage (monthly payment x 360 months): $794,160
January 2015: The average mortgage rate is 3.66 percent.
Monthly mortgage payment: $2,015
Total outlay on mortgage (monthly payment x 360 months): $725,400
So, the difference between a rate of 3.66 percent and 4.41 percent is about $191 a month or $68,760 over the life of the loan.
We’re tracking the path of long-term rates since January 2010 in this chart:
The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.
See other articles related to: mortgage rates
This article originally published at https://dc.urbanturf.com/articles/blog/3.66_percent_mortgage_rates_at_lowest_level_since_may_2013/9410.
Most Popular... This Week • Last 30 Days • Ever
The large new residential building is just the latest development pitched near the ba... read »
The Washington Nationals great didn't move out of the area, though.... read »
UrbanTurf put together a quick primer on the ins and outs of a home auction.... read »
Foulger Pratt has plans to turn the 12-story office building at 1133 19th Street NW i... read »
As the Capitol Riverfront neighborhood nears its development capacity, a new effort p... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
This Week's Find is one of the more interesting homes in DC's Foxhall neighborhood. ... read »
The mall will be reimagined as a 7-story, 325-unit apartment project with 25,000 squa... read »
While DC's rising home prices have been the story for years, there are some areas of ... read »
Brookfield Properties and the Menkiti Group have filed a second-stage planned unit de... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro