Mortgage Rates Level Off After Taking a Little Ride

• August 3rd 2009

by Mark Wellborn

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Thirty-year fixed-rate mortgage rates rose slightly last week from 5.2 percent to 5.25 percent. Rates seem to be leveling off some after taking a little bit of a ride in the last few months, dipping to 4.78 percent in late April and then jumping to almost 5.7 percent in mid-June.

Despite the movement, the long-term rates are still a full point lower than they were last year around this time. (Interest rates were at 6.5 percent in July 2008.)

To put this change in perspective, we compare the payments on a two-bedroom, two-bath condo in Logan Circle on the market for $485,000 at today’s interest rates versus what they would’ve been a year ago. The savings come to over $300 a month.

Monthly payment calculations based on a 20 percent down payment and a 30-year fixed rate mortgage at 5.25 percent:

• Loan Amount: $388,000
• Principal and Interest: $2,143
• Real Estate Tax: $350
• Est. Mortgage Insurance: $100
• Condo Fees: $560
• Total Monthly Payments: $3,153

Monthly payment calculations based on a 20 percent down payment and a 30-year fixed rate mortgage at 6.5 percent:

• Loan Amount: $388,000
• Principal and Interest: $2,452
• Real Estate Tax: $350
• Est. Mortgage Insurance: $100
• Condo Fees: $560
• Total Monthly Payments: $3,462

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/mortgage_rates_level_off_after_taking_a_little_ride/1198.