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.
- PITI* = $1,664.21
- $Total paid over life of the loan = $348,396.40
- PITI*= $1,580.99
- Total paid over life of the loan = $318,438.52
- 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.
*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.