Freddie Mac reported today that mortgage rates are slightly up from record lows. The average rate for a 30-year fixed mortgage rose to 3.71 percent, up from a record low 3.67 percent a week ago. Rates for 15-year fixed mortgage also rose slightly to 2.98 percent, up from 2.94 percent a week ago.
Translation for the 30-year fixed rate means for every $100,000 borrowed at this rate (3.71 percent) that would be about $371.00/mo. in a principle and interest payment.
For every Million dollars borrowed that would be $3,710/mo. for the principle and interest portion of the mortgage payment.
After tax deductions we estimate that would cut about 20 to 30 percent off of that gross amount, and we estimate a net principle and interest 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 property taxes and homeowners insurance which will depend on the area you’re investing, and your tax bracket.
Check out The Cribline House Pick of the Week or the new Sneak Peek feature of homes that have just come on the market 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.
