The historically low mortgage rates sank even lower in November, setting records for both 30-year and 15-year fixed rate loans.
According to Freddie Mac, the 30-year fell to 3.31% from 3.34% in mid-November. The 15-year rate averaged 2.63% compared to 2.65%. The current conditions mean it may make sense for current mortgage borrowers and new home buyers to look at shorter-term loans.
An example of how the numbers add up follows:
Homeowners currently paying off 30-year loans with rates of 4% spend $1,098/month in mortgage payments on a $200,000 balance, paying total interest of $143,739.
Refinancing at 2.63% for 15 years would cost them $250/month more, but they would end up paying just $42,250 in total interest and their payment years would end earlier.
Refinancing into another 30-year loan at 3.31% would cost homeowners only $877/month, saving $221 from the existing loan. But the total interest paid would come to $115,725 over the life of the loan. This is a difference of more than $73,000 compared with the 15-year mortgage.
Please contact your Broker at Breckenridge Associates Real Estate to learn more about the incredible opportunities available today in Breckenridge and Summit County, Colorado. 800.774.7970 or 970.453.2200. Click here for the latest news about Breckenridge Real Estate.
Please contact your Broker at Breckenridge Associates Real Estate to learn more about the incredible opportunities available today in Breckenridge and Summit County, Colorado. 800.774.7970 or 970.453.2200. Click here for the latest news about Breckenridge Real Estate.
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