Here are some interesting quotes from CNN Money. No wonder home buying affordability is at a 40 year high!
Just when it seemed mortgage rates weren't going to get any lower, they started testing new lows.
In the tumultuous days following Standard & Poor's debt downgrades, rates on 30-year fixed mortgages fell to 4.32%, down from 4.39% last week and closed in on a record low of 4.17%. Rates on 15-year fixed mortgages set a new record falling to 3.5%, down from 3.54%.
The savings for borrowers who lock in rock-bottom rates over the length of a mortgage loan can be sizable. For example, a $200,000, 30-year loan with a 4.32% rate generates a monthly payment of just $992, and total interest payments of $157,153. A 5% rate (ordinarily considered low), generates a $1,074 a month payment and $29,357 more in interest over 30 years.
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