Uh-Oh! I Made A Mistake!
Yesterday, I wrote a little story about how today's low mortgage rates were advantageous for both buyers and sellers of real estate. In that story, I noted that mortgage rates for a 30-year fixed loan were 3.66%.
Well, this morning I learned that 30-year fixed mortgage rates had actually fallen to 3.56%! That, according to Freddie Mac, is the lowest rate since 1971. Okay, I was a week behind on my info ... so shoot me!
I also learned that the average 15-year mortgage rate had dropped to 2.86% which is also a new record low.
When I first went into the real estate business many years ago, I bought a book entitled Barron's Financial Tables For Better Money Management, Mortgage Payments. This is a book with page after page of amortization tables. Each page is a different interest rate, and it charts the time of the loan and the amount of money borrowed. In each column, it gives you the monthly principal and interest payment to amortize the loan.
The pages dealing with rates of 6% to 8% are absolutely wear-worn. I got a lot of use from this little book in the 1990's and early 2000's.
The problem with the book is that it charts only mortgage rates of 5% or more (up to interest rates of 21-3/4%, if you can imagine that). I guess nobody ever thought we'd see mortgage rates get as low as they are today. So, with interest rates now at 3.56%, my little book is useless. Nevertheless, I think I'll keep it just in case rates move up at some point.
Well, this morning I learned that 30-year fixed mortgage rates had actually fallen to 3.56%! That, according to Freddie Mac, is the lowest rate since 1971. Okay, I was a week behind on my info ... so shoot me!
I also learned that the average 15-year mortgage rate had dropped to 2.86% which is also a new record low.
When I first went into the real estate business many years ago, I bought a book entitled Barron's Financial Tables For Better Money Management, Mortgage Payments. This is a book with page after page of amortization tables. Each page is a different interest rate, and it charts the time of the loan and the amount of money borrowed. In each column, it gives you the monthly principal and interest payment to amortize the loan.
The pages dealing with rates of 6% to 8% are absolutely wear-worn. I got a lot of use from this little book in the 1990's and early 2000's.
The problem with the book is that it charts only mortgage rates of 5% or more (up to interest rates of 21-3/4%, if you can imagine that). I guess nobody ever thought we'd see mortgage rates get as low as they are today. So, with interest rates now at 3.56%, my little book is useless. Nevertheless, I think I'll keep it just in case rates move up at some point.
-30-
posted by Terry Ward at 6:20 AM
0 Comments:
Post a Comment
<< Home