Mortgage Rates hit record low ...
Posted by Sandra Israelson on Friday, December 4th, 2009 at 11:38am.The average interest rate for 30 year mortgages hit a new record low since Freddie Mac began tracking interest rates in 1971 !! The interest rate for a 30 year fixed rate mortgage dropped to 4.71%. So what does this mean in terms of a consumers buying power? The 4.71% gives a factor of $5.19 per every $1000 borrowed. This means that for a $100,000 loan, your mortgage payments would be just $519.
Of course, you need to remember that the banks will tack on a PMI fee (Private Mortgage Insurance) if you borrow more than 80% of the value of the property. And they will also add in escrow payments for your insurance and property taxes. But the bottom line is that these are great rates making it a terrific time to buy real estate.
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