How Low are Mortgage Rates?
I was asked this question recently and with some humor replied, “I don’t know. They’re so low I can’t find them!”
One of the bright spots in our economic downturn has been the dramatic reduction of interest rates. We are now seeing mortgage rates at 60 year lows. As an example, a recent 30 year fixed was coming in at 3.875%. If you switch that to a 10 year adjustable rate mortgage it drops to 3.25% and a 3 year ARM comes in at 2.75%.
This article discusses one of the changes in American mortgage philosophy – pay it off quicker. We enjoy the ability to deduct mortgage interest on our personal income taxes. A nice benefit which in the past has encouraged many homeowners to let their debt linger longer. That idea is changing. Paying off quicker is now in vogue. Refinancing to lower interest rates and using the savings to shorten up the payback period is one way of getting rid of debt sooner. In fact savings of over $100,000 can possibly be realized by employing this strategy. Investigating the ideas contained in this article may change your thinking. Something to consider…………