Friday, June 22, 2012

Mortgage Rates At Historic Lows

My credit union is advertising 3.706% APR for 30 year fixed rate mortgages.  More impressive, I notice that along with 15 year mortgages (which have always been a good idea for those with lots of money to spend each month) they are also advertising 10 year fixed rate mortgages, at 3.107% APR.  For a $100,000 mortgage (which would be a pretty nice middle class home in the Boise Metro area), that's $960 a month--a perfectly reasonable payment if you had a good job.  (I know that good jobs still exist in this area, even if I am age unqualified for them.)


  1. Here's a little tip. Get a 30-year mortgage, and pay it off according to a 10-year schedule. That way, if you ever get stuck, you can revert back to the 30-year schedule.

  2. Yes, I did that when I was younger, and had a private sector job.

  3. "The Monthly Mortgage Payment (P&I) is based on a 10-year term with a loan amount of $100,000, purchase price of $134,000 (25% down payment) of an owner-occupied conforming property. The calculations assume excellent credit, member-paid closing costs, including points and .50% origination fee."

    in other words, $33,500 down payment plus a $500 origination fee is required. THAT is a big chunk of change.

  4. The $500 isn't; the down payment might be a bit hefty for someone buying their first house, no question!

    You troublemaker, reading the fine print!