Every Thursday morning, the weekly averages from around the country are released, so that we can see the trends.
Today is Thursday, so here are the numbers.
Over the past week, the interest rate on the average Freddie Mac approved 30-year mortgage loan was 4.37%. For that loan, the average cost paid to the lender was 0.7% of the amount borrowed.
Let's make that easier to understand. The average 30-year loan requires the average borrower to pay a principal and interest payment of $498.99 every month for every $100,000 borrowed. For that loan, the consumer paid $700 for every $100,000.
15-year mortgages are less risky for the lenders, so don't cost as much. This week, the average borrower was able to buy an interest rate of 3.39%. That means monthly principal and interest payments of $709.49 for fifteen years for every $100,000 borrowed. Consumers paid the same $700 for every $100,000 borrowed as a closing fee.
Comparing that to what you could have found one year ago, we get a little nostalgic. 30-year loans showed interest rates at 3.51%, while 15-year mortgages were at 2.76%. For either loan, 0.8% fees -- a little higher -- meant that closing fees cost an average of $800 for every $100,000 borrowed.
What's the difference between the monthly payments then as opposed to now? Monthly payments on 30-year loans last year, on average over the week, were $49.39 less. 15-year borrowers would have saved $30.39 on their monthly payments. Take those savings over 15 or 30 years, and you have some real whoop-out money.
The following chart from Freddie Mac shows you how we've trended over the past year.
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Enjoy the day,