February 21, 2013
Intro to Business
30-Year Fixed Mortgage Rates
Wall Street Journal
Thursday, February 21, 2013
3.85% = Current Fixed Rate for 30 Year Fixed Mortgage
The 30 year fixed mortgage loan seems to be one of the most popular loans people take out because people get to pay back the money over a stretched period of time. The interest rate on a fixed mortgage rate stays the same throughout the life of the loan. Each monthly payment is equal to the interest on the principal and some of the principal amount. Since some of the principal amount was paid off when the loan was taken out, the interest payment on the remaining principal will be a little less each month. The payment is the same each month so some the principal amount is paid off each month. This loan is so popular because of fixed interest rate and lower monthly payments; however because the term is so long, you will have to pay more interest. These rates have been up and down for months now, but on February 21, 2013, according to The Wall Street Journal, the 30-year mortgage rates were at 3.85%. The way these rates are measured is through percentages because it makes it easier to understand its changes. The periodicity of the 30-year mortgage loan rates happen on a daily basis.
Despite the current struggles of our country and the fluctuation in the economy, people will always need to buy houses. Many Americans cannot afford to buy a house in one payment. Since 1929, Americans were provided with different options in order to make their decision of buying a home more comfortable and affordable. A 30-year mortgage rate on a home is vital to the development of new families. This allows families to start a healthy line of credit with minimal risk. Also for new homeowners, government grants can help cut the cost of housing. A 30-year fixed mortgage rate along with a government grant can help new homeowners afford...