Average 15 Yr Mortgage Rate15-year average mortgage rate
04 percent of their historic low of last autumn.
According to the Mortgage Bankers Association, about a fourth of the funding requests in March concerned 15-year fixed-rate mortgages. "Although interest rates rose by 2 full points, buys remained cheap than rent almost anywhere in the country," said Jed Kolko, head house economics for the property website Trulia.com. "And as funding activities shrink, many bankers will switch to lending more for home purchase.
Extremely low interest on 15-year-old credit can make it rewarding for many individuals to get a raw deal when refinancing houses, Bankrate.comanalyst Polyana da Costa said. At a $200,000 debt, which averages 2.56% curiosity, the series commerce would be $1,339.23 as Costa same. It' s about the same as a 30-year mortgage that charges 7%, although it's well over the $881.43 per months needed to repay a 30-year mortgage at 3.35%, she said.
"When you look at the life of the loans, you are saving about $75,000," da Costa said. Having a short-term mortgage "also provides more shelter from a drop in house rates as a 15-year mortgage creates faster equity," said Keith Gumbinger, VP of the mortgage information services HSH Associates. By the end of 2015, the 15-year debt would drop to just over $170,000, he said.
Thats what would keep a house more than worth its mortgage record even if prices fell by a quarter as long as the customer put 10% down, he said. Since the 2008 subprime mortgage crises, interest rate levels have fallen, driven by the Fed's policies to stimulate the sale of residential real estate through the active purchase of mortgage backed securities, which lowers borrowing costs.
"It' hardly believable, but I wouldn't be pleasantly surprised if interest levels were a little lower," da Costa said.