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Historical Mortgage Rates

HOW LOW CAN THEY GO?

Check out this mortgage interest rate graph which demonstrates just how low mortgage rates are, historically speaking:

For comparison purposes, I always think about the first home my husband and I purchased. The year was 1995, and a 30 year fixed rate was about 8.5%. We paid $150,000 for our home.

In 2012, that same home would sell for about $350,000, with interest rates now just below 4%. The difference in mortgage payments?

Assuming 20% down in both cases, the mortgage payment in 1995 was $922; in 2012 it would be $1296.*

Folks, money has never been this cheap. If the time is right in your life, then the time is right. It’s time to stop renting and buy a home.

Disclosures:
* This is comparing the principal and interest portion of a mortgage payment only. Taxes and Insurance are not factored in.
Chartreproduced with the permission of Mortgage-X.com