Great News For Home Buyers and Home Sellers! Mortgage Interest Rates Are Below 5 %.
Consider the benefits. A lower interest rate will reduce the monthly payment for a mortgage loan or provide the ability to finance more in a home purchase and have the same monthly mortgage payment.
An example: using a $300,000 mortgage (calculations are estimates only)
* 5% interest rate equals a mortgage payment (principal and interest) of $1,610
* 4.75% interest rate equals a mortgage payment (principal and interest) of $1,564
This is a is monthly savings of $46.00.
A home buyer now has the benefit of $46.00 monthly savings in the mortgage payment with the lower interest rate. However, if the $1,610 mortgage payment was acceptable, a home buyer could now increase their price range and borrow an an additional $9,000 in the mortgage and still have a mortgage payment at or around $1,610. Lower mortgage interest rates allow for a more affordable home purchase or enables an increase purchase price range.
A fixed interest rate is for the life of the mortgage loan. With mortgage interest rates at, or near historic lows, now is the time to consider to consider a home purchase! And for Qualified First Time Buyers, don't forget the IRS $8,000 Tax Credit!
Whether you are thinking of purchasing a home in Iselin, New Jersey, other Towns in the Middlesex County area or anywhere else, please consult with a REALTOR or Mortgage Consultant who can provide more information and provide assistance with mortgage pre-approval.
And there are benefits to home sellers and potential home sellers too! With any drop in mortgage interest rates, more buyers are able to purchase due to increased affordabilty and lower monthly mortgage payments. Current home owners desiring to move up to a larger home, will now enjoy the same benefits of lower interest rates and may find that their next home is now even more affordable than previously thought.
For following mortgage interest rate information was provided by Jayne Codella, Mortgage Consultant, Wells Fargo Home Mortgage.
For new purchase loans for single family, owner occupied properties with loan amounts of $250,000 to $417,000, with credit scores of 730 or higher and minimum of 10% down.
Conventional Mortgages
4.875% for a 30 Year Fixed 0 points
4.625% with 1 point
4.375% with 2 points
Condos, multi family and lower credit loans will have slightly higher rates. Refinance rates are slightly different depending on equity in the home, rate term or cash out and credit scores.
FHA Mortgages
Loan amounts between $250,000 and $417,000 for purchases of single family or multi family homes. Must be owner occupied.
5% with no points
4.75% with 1.5 points
4.50% with 2.25 points
