For those looking to purchase Boston Real Estate, now may be the time to do it, as mortgage rates have hit a historically low level. According to Freddie Mac, for the first time since 1991, mortgage rates have fallen below the 4% line, with the average rate on the 15-year fixed loan at 3.95 %. Additionally, for the first time since the 1950’s, 30-year fixed loan rates fell to 4.49%. This could mean that your home could be paid off in half the time and for thousands of dollars less!
The lower rates on short-term loans, however, are not likely to affect the refinancing market. Most people would need lower monthly payments to be able to afford a 15-year fixed mortgage as opposed to the more common 30-year loan. Due to the weakened economy, fewer people are able to refinance. In 2003, refinancing was more common, with about 33% of mortgages shifting from a 30-year loan to a 15-year loan. Now, with the higher levels of unemployment and less equity in people’s homes, refinancing has fallen to about 20%, according to Credit Suisse.
And while these low rates are good news, it is important to note that not all homeowners will qualify for rates this low. Typically one must have a certain credit score to qualify. It’s important to conduct thorough research before buying a home or an apartment, and a qualified Boston realtor can help you with that. Contact one of our realtors today or browse our online selection of Boston real estate for sale.
If you’re looking for a Boston rental, we can help with that, too!
