Mortgage Rates –Increasing in 2011? – Patrick Bowers, Mortgage Broker

Morse Lake Information & News

For 2010, we have been blessed with “historically” low interest rates, but will this trend continue into 2011?

The Mortgage Bankers Association has recently forecast that “Rates on the 30-year fixed-rate mortgage will average 4.4% in the fourth quarter of 2010…and climbing to 5.1% by the end of next year”.

While .7% may not seem like a lot, it can have majority implications over 30 years.  For example, a $150,000 loan amount over 30 years at 4.4% will give a borrower a monthly principal and interest payment of $751.14.  At 5.1%, this monthly payment increases roughly $65/month to $814.42.  Even scarier is that over 30 years, a borrower will pay roughly $23,000 more for their mortgage at 5.1% vs. 4.4%.

Whether your purchasing Noblesville real estate or refinancing a Downtown Indianapolis Condo, there is no better time than now to get off the fence and jump into action!

Patrick Bowers

Private Mortgage Banker
“Where your American Dream starts”
3077 E. 98th Street, Suite 150
Indianapolis, IN 46280
Cell (317) 258-8334