Today brings great news to homebuyers needing mortgage financing as rates for 15-year fixed-rate loans have reached an all time low. This news is a breath of fresh air for today’s homebuying market after the recent recession and subsequent increase in foreclosure rates.
Mortgage rates are not only falling for 15-year fixed-rate loans, they are falling for all mortgage types. However, more people will opt for a 15-year fixed-rate loan, due to the lower balance held a shorter-term loan. The balance on a shorter-term loan is less than the balance on a 30-year fixed loan by an average of $75,000.
A mortgage with a shorter term “provides more protection against a downturn in home prices, since a 15-year loan builds equity more quickly,” according to Keith Gumbinger, Vice President of mortgage information service, HSH Associates.
Bankrate.com analyst Polyana da Costa notes that he wouldn’t be surprised if mortgage rates go even lower.
Premier Mortgage Lending is excited for our customers who will now find it easier to get back in the real estate market with these attractive rates.
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