Mortgage Interest Rates Take a Plunge

interest ratesWhile the lazy hazy days of summer may be over, mortgage interest rates have decided that they aren’t done diving just yet. This could be the perfect time for you to give Waypoint Real Estate Group a call.

While analysts predicted that in 2014 mortgage interest rates would climb, the tides have taken an unexpected turn in the opposite direction. At the start of the year the average 30-year-fixed-rate mortgage was at 4.69%. However, according to a recent survey of major lenders conducted by interest.com, instead of climbing, mortgage interest rates for a 30-year-fixed-rate have dropped down to 4.01%. What do these percentages mean in terms of numbers? Well compared to this time last year, this means the average borrower would save approximately $30 a month for every $100,000 borrowed. While that may not seem like a big number, think about it in terms of a $300,000 loan. $30 x 3 =$90 saved a month x 12 = $1080 saved per year. Keep in mind these are just the average numbers. Some lenders have lower rates offering even greater savings on mortgage interest rates for those with the patience to shop around. For many, these low rates could make it possible for them to be able to afford their dream home.

Even better news is that home loans are not only cheaper right now, but they are easier to get. According to Ellie Mae Inc, a mortgage tech firm whose software is used by many lenders, the average credit score of an individual approved for a loan at this time is 755. This is a decrease in averages of previous years – 759 in 2013 and 763 in 2012. It is also reported that loans are taking less time in the approval process. The average loan process is being reported at about 39 days by interest.com, that’s about one week less than was reported last year.

If you are ready to move into your dream home but worried about financing, now could be the perfect opportunity for you. Waypoint Real Estate is not just here to help you find the new home of your dreams. We are also here to guide you through the process of locating the right lenders able to hook you up with  mortgage interest rates that works for you. Give Waypoint Real Estate Group a call today to discuss these trends with you and what it means for your home purchasing power.

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