Now That’s Cheap – Home Mortgage Rates Through the Years

Elgin, IL – The home buyers today are used to seeing cheap rates on mortgage loans.  According to Freddie Mac’s article, “Mortgage Rates, From Dirt Cheap to Cheap” released on March, 21, 2014, mortgage rates on a $200,000 along with the year and interest rates for the time frame:

  • 1970s
    Average 30-year fixed-rate mortgage: 8.86%
    Approximate payment on a $200,000 mortgage: $1,589
  • 1980s
    Average 30-year fixed-rate mortgage: 12.70%
    Approximate payment on a $200,000 mortgage: $2,166
  • 1990s
    Average 30-year fixed-rate mortgage: 8.12%
    Approximate payment on a $200,000 mortgage: $1,484
  • 2000s
    Average 30-year fixed-rate mortgage: 6.29%
    Approximate payment on a $200,000 mortgage: $1,237
  • 2014
    Average 30-year fixed-rate mortgage: 4.36%
    Approximate payment on a $200,000 mortgage: $997

Keep in mind, these payments are principle and interest only.  They do not include property taxes, insurance, home owner’s assessments or Private Mortgage Insurance, which can double the payment each month.  But still, a 40 year old home buyer today would be accustomed to interest rates being well under 7% for almost 15 years.  Although the gas prices probably ate up the money for the mortgage, they still have a chance to own their own home in 2014.

Jennifer@ElginFoxValley.com

 

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