Freddie Mac this morning reported that the average rate on a 30-year fixed-rate mortgage fell to 3.75 percent last week from 3.78 percent the prior week, a new low.
The average rate on a 15-year fixed-rate mortgage fell to 2.97 percent from 3.04 percent the previous week, also a new low.
Translation for the 30-year fixed rate, This means for every $100,000 borrowed at this rate (3.75 percent) that would be about $375.00/mo. in a principle and interest payment.
For every Million dollars borrowed that would be $3,750/mo. for principle and interest payment.
After the tax deductions that would cut about 20 to 30 percent off of that, and estimate a net payment of about $280/mo. for $100,000 borrowed, and less than $2,800/mo. net for every million dollars borrowed.
You’ll have to add in taxes and insurance which will depend on the area you’re investing, and your tax bracket.
Check out The Cribline House Pick of the Week to see how owning a home can often cost much less than renting!
Share with your friends and follow us on Twitter if you aren’t already.