I went to Edina Reality and found a $300K home and set the inputs to have $60K down (creating a $240K loan) over 30 years with a yearly property tax of $3,671 and a yearly property insurance of $900. These inputs were based on real data from this random home I found in Minneapolis. Anyway, below is the difference based on the interest rates:
- Current Rate of 3.94% = Monthly payment of $1518.
- October 2010 Rate of 4.24% = Monthly payment of $1560
- October 2009 Rate of 4.95% = Monthly payment of $1662
- October 2008 Rate of 6.2% = Monthly payment of $1851
- October 2005 Rate of 6.07% = Monthly payment of $1831
- October 2000 Rate of 7.79% = Monthly payment of $2107
- October 1995 Rate of 7.48% = Monthly payment of $2056
- October 1990 Rate of 10.17% = Monthly payment of $2517
- October 1985 Rate of 12.14% = Monthly payment of $2875
- October 1980 Rate of 13.79% = Monthly payment of $3185
Can the interest rate go lower? I looked at the data that included every month from 1971 to now and the current rate is at an all-time low. That doesn't mean it can't go lower (the trend is certainly pointing that way), but the rates are certainly a lot better than they were at pretty much any other time in the recent history.