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
Cell (317) 258-8334
