Cribline News Flash – Mortgage Rates Start Off Year Below 4 Percent Despite Fed Rate Increase
30-year fixed-rate mortgage averaged 3.97 percent for the week ending January 7, 2016, down from last week when it averaged 4.01 percent. A year ago at this time, the 30-year FRM averaged 3.73 percent.
15-year FRM this week averaged 3.26 percent, up from 3.24 percent last week. A year ago at this time, the 15-year FRM averaged 3.05 percent.
For a 30-year fixed rate, every $100,000 borrowed at 3.97 percent means that the monthly principle and interest payment would be about $397/mo.
For every Million dollars borrowed that would be $3,970/mo. Tax deductions for interest would shave about 20 to 30 percent off of that amount making the final net payment approximately $278/mo. net for $100,000 borrowed, and about $2,780/mo net for every million dollars borrowed. This does not include property taxes, insurance or any other fees.
Happy house hunting!