If you’re looking to purchase a property in the United States, there has never been a better time to start the ball rolling. Not only are prices much lower than they have been over the past few years, but mortgage rates are at an all time low. That means you’ll end up paying considerably less interest on any money you borrow from the bank. Throughout the course of this short post, we’re going to provide you with some information that should help you to understand why the best time to buy is right now.
Average mortgage rate – 30 years
After much industry research, we’ve determined the average rate for a thirty-year mortgage in the US currently stands at close to 4.12%. By global standards, that is incredibly low. In the UK, the average homeowner can expect to pay almost 3% more than you can get at home right now.
Average mortgage rate – 15 years
When you take out a shorter mortgage, you can expect interest rates to drop even further. Over fifteen years, the average mortgage rate at the moment is just over 3.24%. While most people might struggle to pay the money back in such a short time, high-earners could benefit immensely from a shorter mortgage.
Average mortgage rate – 5 years
No bank in the country is going to give you a new mortgage with a term of only five years. However, those looking to remortgage could get a good deal if they choose that solution. Indeed, 5-year adjustable rate mortgages now average at around 2.97% interest.
As you can clearly see, failing to take the bull by the horns now could cost you dearly in the future. You must take full advantage of these rate reductions while they’re available.
Infographic By KWNYC