Connecticut Real Estate News: Yes Interest Rates Are Still Affordable

mortgage news

You may have heard that mortgage rates are inching up throughout the country. Don’t worry. According to Bankrate, rates are still near historic lows and affordable. Pair this with rising home prices and you have ideal conditions to buy or sell a home. The following examples show what typical monthly rates and payments are for a $250,000 mortage with 20 percent down and no points, if you have an excellent credit score of 740 or above.

fixed-rate-mortgage

Fixed-Rate Mortgage

For most homebuyers, a fixed-rate mortgage is ideal because it grants a constant monthly payment throughout the life of the loan. However, it also has slightly higher interest than other types of loans and stricter qualification requirements. Two terms are typical.

30 years. The national average for this term is 4.61 percent, although in Hartford, the range is from 4.31 to 4.79 percent. Monthly payments run from $1,230 to $1,304.

15 years. The shorter term means higher payments but a lower total cost because of the lower interest rate. The national average is 3.66 percent. The range in Hartford is 3.39 to 3.94 percent, which equals monthly payments of $1,757 to $1,834.

arm

ARM

If you’re having trouble qualifying for a fixed-rate mortgage, then an adjustable-rate mortgage may be better for you. In exchange for the lower interest rate, which is easier to qualify for, your payment remains fixed only for a specified period. It then matches prevailing market conditions, which usually produce higher payments.

For example, a 5/1 ARM means that payments are constant only for the first five years. The national average is 3.61 percent but in Hartford the range is from 2.79 to 3.19 percent. Monthly payments go for $1,021 to $1,140.

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 If you are looking for a loan quote or refinance in Connecticut, Contact Sherriann for all your questions and needs!

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