How low mortgage interest rates positively affect house payments
Are you planning on buying a home in the Austin Texas area or possibly refinancing your existing mortgage? If so, right now is the perfect time to make your move because historically low interest rates make 2020 a perfect time to buy or refinance.
If you’ve ever wondered how low mortgage interest rates, this article will provide you with tips on how low interest rates affect your house payment.
“If you’re in the market to buy a house in Austin, or elsewhere in Central Texas, today’s average mortgage rates are something to celebrate compared to almost any year since 1971…
Mortgage rates change frequently. Over the last 45 years, they have ranged from a high of 18.63% (1981) to a low of 3.31% (2012). While it’s not likely that the average 30-year fixed mortgage rate will return to its record low, the current average rate of 3.45% is pretty close — all to your advantage.”
To put this in perspective, the following chart from the same article shows how average mortgage rates by decade have impacted the approximate monthly payment of a $200,000 home over time
| Date | Average Rate | Approximate monthly payment on a $200,000 mortgage |
|---|---|---|
| 1970s | 8.86% | $1,589 |
| 1980s | 12.70% | $2,166 |
| 1990s | 8.12% | $1,484 |
| 2000s | 6.29% | $1,237 |
| 2010s | 3.99% | $954 |
| February 27, 2020 | 3.45% | $894 |
Source – Freddie Mac
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