Below 4% 15 and 20-Year Fixed-Rate Loans Now Making Up 1/3rd of Refinance Transactions
Images for this post are temporaraly unavailable.
As interest rates have tracked down, many homeowners are now taking advantage of using 15 and 20-year fully-amortizing, fixed-rate loans. Since these are shorter in duration than 30-year loans, they also feature lower interest rates.
Last week, according to Freddie Mac, while 30-year rates averaged 4.44 percent, 15-year loans were record-low 3.92 percent.
While the monthly principal and interest payment will be more for the 15-year loan ($735.69 versus $503.13 for the 30-year loan), the homeowner with the 15-year fixed rate loan will repay just $132,423 compared to $181,125 for the 30-year loan – a total savings of $48,702.