A news alert on my phone just came through and says that the average rate on a 30 year mortgage falls to a record low of 3.94% — this is unprecedented and if you are thinking of buying it would be a shame to miss this opportunity. When I bought my first house several years ago the interest rate was 16%. So, lets look at what the difference in monthly payments would be. These numbers are without insurance, flood, and taxes, just the basic mortgage amount.
For a $200,000. loan, 30 years at 3.94% the monthly payment would be $947.93. The same loan at 16% the monthly payment would be $2689.51. If you have the cash for the down payment and the closing costs this is the time to buy.
Disclaimer: this rate needs to be verified because it may not apply to you, credit scores, job history, and other factors may effect the possibility you can obtain this rate. This is accurate at the time this is written on October 6, 2011 at 8:05am. Please contact a mortgage professional and independently verify if this will apply to you.