NBC Segment on Mortgage Interest Rates

NBC Nightly News just aired a segment on mortgage interest rates and a renewed refi craze. 30 year rates are down from 4.5% this time last year to 3.81%. The experts crystal ball is that rate will remain low but now is the time to act if you are thinking about a refi. Does a refi make sense to you with these interest rates? Talk to a lender and see what your break-even point is. Thinking about buying a home?  I used this mortgage calculator to run these comparisons:

A $300,000 house with 10% down at 4.0% for 30 years has a monthly principle & interest payment of $1289.

A $300,000 house with 10% down at 4.5% for 30 years has a monthly principle & interest payment of $1368

A $300,000 house with 10% down at 5.0% for 30 years has a monthly principle & interest payment of $1449.

A $325,000 house with 10% down at 4.0% for 30 years has a monthly principle & interest payment of $1396.

A $325,000 house with 10% down at 4.5% for 30 years has a monthly principle & interest payment of $1482

A point increase has a bigger impact on the payment than a $25,000 price increase.

Here’s the full segment:

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