Great News For Home Buyers and Home Sellers! Mortgage interest rates are below 5 %.

Consider the benefits. A lower interest rate will reduce the monthly payment for a mortgage loan or provide the ability to finance more in a home purchase and have the same monthly mortgage payment.

An example: using a $300,000 mortgage (calculations are estimates only)
   * 5% interest rate equals a mortgage payment (principal and interest) of $1,610
   * 4.75% interest rate equals a mortgage payment (principal and interest) of $1,564
This is a is monthly savings of $46.00.
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Now is the Time to Think About Saving Money!

Mortgage Interest Rates continue to fall! As reported yesterday by Freddie Mac , "the average rate on 30 year fixed mortgages dropped to 5.19% from the year's previous low of 5.47%".

And that is the average rate for mortgages across the Country. I have already saw interest rate quotes below 5%, but I need to confirm that. Selling real estate for 37 years now, seeing mortgage interest rates for a 30 year fixed mortage at or around 5% is a rarity, an almost once in a lifetime type of event! Interest rates this low create opportunities for not only first time home buyers, but also provides opportunities for current homeowners in refinancing and perhaps the opportunity to consider purchasing a vacation home or investment property.

What are the savings? Just a very short while ago, mortgage rates on a fixed rate mortgage for 30 years were hovering between 6% and 6.375%. For a $300,000 mortgage for 30 years at 6.375%, the mortgage payment for principal and interest is $1,872. With rates at 5%, the payment is $1,611. That is a monthly savings of $261 and $3,132 in annual savings on monthly mortgage payments

For buyers thinking about purchasing their first home, for homeowners desiring to move up to a larger home or considering refinancing, now is the time to move beyond the thinking mode.