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Best Record Set This Year: Mortgage Rates Hit All-Time Low

by Mark Wellborn

Best Record Set This Year: Mortgage Rates Hit All-Time Low: Figure 1

This week UrbanTurf is taking a look back at the best that DC’s residential real estate market had to offer in 2009. From the best deals to the best trends to, of course, the best listings, we believe we have sussed out the cream of the crop.

Shortly after Thanksgiving, long-term mortgage rates sank to 4.71 percent, an unprecedented level since Freddie Mac started keeping track of rates back in 1970. While the 4.71 percent rate is somewhat misleading, as the lowest rates are offered only to the most creditworthy customers who can make sizable down payments, this historically low milestone probably provides more impetus for people to buy homes than any tax credit or government-related homebuyer program.

What the low rate signifies to people is savings, and the savings are fairly staggering.

Two years ago, interest rates were approaching 7 percent. Back then, the monthly payments on a $499,000 home (where you put 20 percent down) would’ve been around $2,650. If you were lucky enough to lock in the low, low rate a few weeks ago on the same property, you would be paying about $600 less per month. Over the life loan, that is a savings of over $200,000.


Next Up: Best Deal of 2009: The $419,000 Three-Bedroom

Previous Best Of 2009 entries:

See other articles related to: mortgage rates, best of 2009

This article originally published at http://dc.urbanturf.com/articles/blog/best_record_set_this_year_mortgage_rates_hit_all-time_low/1600

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