I never thought I’d see the day, but mortgage rates have fallen below the 5% mark! Rates have been seen in the upper 4% range, some even down to about 4.75%. This is unheard of and could save the average homeowner hundreds if not thousands of dollars per year!

Take my current home loan for instance – I owe about $235K. Let’s just compare a new 30 year fixed loan: one at 6.375% (my current rate) and one at 4.75%. At 6.375%, my monthly payments would be approximately $1466.86, assuming I didn’t have any points added to my loan for processing, paperwork, etc. At 4.75%, my monthly payments would be approximately $1225.87 – a savings of $240.99 per month. Over the course of a year, I’d be saving $2,891.88.

If refinancing is an option for you, take advantage of the low rates now! These 4% interest rates for home loans won’t last forever. Just hope that you’re not stuck in my situation of not being able to refinance – My refinance was denied!

Since the time of this writing, interest rates have shot up a bit to the 5% range. Still not too bad, especially if your current loan is in the mid 6% and above range. Best of luck to those of you who are looking to refi or get a new home loan.