What it means for You when Rates Drop
25 Dec 2023
When mortgage rates fall, your monthly payment drops significantly. A $400,000 loan costs about $300 less per month at 6.5% versus 7.5%, and refinancing existing mortgages can unlock those savings.
When mortgage rates fall, your monthly payment drops significantly. A $400,000 loan costs about $300 less per month at 6.5% versus 7.5%, and refinancing existing mortgages can unlock those savings.
Mortgage rates have dropped. Now what does it really mean for the average consumer? So let's take a 3 to $50,000 whole loan and mortgage rates that peaked around 8% back in October, now down to around 7% for an average 30 year fixed. Well, the $350,000 loan, the principal interest payment was 25.68. Now it's dropped to 23.28. That's 240amonth savings. And if that's exciting, that's great. But keep in mind you're not alone. That's exciting for millions of potential home buyers that are now entering back into the market. But keep in mind, a rate drop like that doesn't instantly mean somebody's under contract and closing on, but it does mean the time's ticky, that window's closing before things get kind of crazy again like we saw a couple years ago. And then if we got mortgages, we're generally able to save at an additional half percent on rates. We could take that 7% down to a 6.5%. For decent qualified buyers. That takes that principal interest at A2212, an extra $115 a month off. Call us today for help on your home loan.
