Just when I thought mortgage interest rates were at an all-time low, I get surprised by rates under 4%. A year ago, rates were hovering between 4.25% and 4.50% for a 30-year fixed rate loan. As of March 5, 2015, Freddie Mac reported rates are around 3.75%.

Here are some calculations using the average home price in San Antonio $212,222 (per SABOR and as of January 2015) for a 30-year fixed rate conventional loan with 10% down payment.

At 4.50%

  • PITI* = $1,664.21
  • $Total paid over life of the loan = $348,396.40

At 3.75%

  • PITI*= $1,580.99
  • Total paid over life of the loan = $318,438.52

Difference

  • PITI* = $83.22
  • Total paid over life of the loan = $29,957.88

Here are the statistics from Freddie Mac for the week ending Feb. 26:

  • 30-year fixed-rate mortgages: averaged 3.75 percent with an average 0.6 point, down from last week when it averaged 3.80 percent. A year ago, the 30-year FRM averaged 4.28 percent.
  • 15-year fixed-rate mortgages: averaged 3.03 percent with an average 0.6 point, down from last week when it averaged 3.07 percent. A year ago, the 15-year FRM averaged 3.32 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgages: averaged 2.96 percent this week with an average 0.5 point, down from last week when it averaged 2.99 percent. A year ago, the 5-year ARM averaged 3.03 percent.
  • 1-year Treasury-indexed adjustable-rate mortgages: averaged 2.44 percent this week with an average 0.4 point, unchanged from last week. A year ago, the 1-year ARM averaged 2.52 percent.
 
Calculations derived using Alamo Title’s Alamo Agent program
 

*The acronym PITI stands for Principal, Interest, Taxes and Insurance which are the components of most home mortgage payments. For these calculations, homeowners insurance was estimated using 68% and property taxes were estimated using rate of 2.7.