Welcome to Thursday, 28 September 2017.
It being Thursday, it's time to update you on what market rates were for mortgage loans over the past week in the US of A.
Every week on Thursdays, Freddie Mac compiles the stats for what mortgage activity happened over the past week, and reports what the average interest rate was and what costs the borrowers paid for that money, as follow:
30-year mortgages over the past week averaged 3.83%, and for that money, borrowers paid 0.6% in fees. That means that, for every $100,000 borrowed, people paid in points and fees a total of $600, and the monthly payment over the next 30 years will be $467.67.
15-year mortgages for the lender are less risky, so the interest rate is lower, this past week averaging 3.13%. Cost for that money was 0.5%. For every $100,000 borrowed, people paid in points and fees a total of $500, and the monthly payment over the coming 15 years will be $731.20.
5/1 ARMs are different. Adjustable Rate Mortgages are fixed for the first five years, then adjust to the marketplace each year over the final 25 years. This past week, borrowers of 5/1 ARMs signed at 3.20%, at a cost of 0.50% in costs. In real money terms, that's $500 for each $100,000 borrowed, resulting in a monthly payment of $432.47. Again, that payment is fixed for the first five years before an adjustment.
Not bad, considering that when the Bank of the United States was created in 1791, interest rates were about 7.00%. I'm happy .
Call me as you need. I"m always here for you if you're thinking about buying or selling your home or real estate investments.
Enjoy the day,
WK Real Estate