$$ Savings in interest rates for Fort Collins borrowers

With the recent takeover of Fannie Mae & Freddie Mac, the interest rates for homes took a nose dive which is a great thing for borrowers.  Here is a quick snapshot of the potential savings for a homeowner that purchases a home with today’s interest rates compared to last week…and possibly next week or next month.

Last week in Fort Collins, a borrower with solid credit could have received a 6.5% interest rate and that same borrower can get an interest rate of 5.93% (according to Fannie Mae’s average) though there is a range of 5.625% to 5.875% in Fort Collins for a 30-year fixed, but for this exercise I’ll be a little conservative so the actual $$ savings could be greater.

Loan amt    Mort. (P&I) @ 6.5%      Mort. (P&I) @ 5.93%      $ saved/mo

 $100K                  $632                                  $595                           $37

 $150K                  $948                                  $893                           $55

 $200K                  $1,264                               $1,190                        $74

 $250K                  $1,580                               $1,488                        $92

 $300K                  $1,896                               $1,785                        $111

 $350K                  $2,212                               $2,083                        $129

 $400K                  $2,528                               $2,380                        $148

 $450K                  $2,844                               $2,678                        $166

 $500K                  $3,160                               $2,975                        $185

 $600K                  $3,792                               $3,570                        $222

 $700K                  $4,424                               $4,165                        $259

 $800K                  $5,057                               $4,760                        $297

 $900K                  $5,689                               $5,356                        $333

 $1Mil                    $6,321                               $5,951                        $370

So as you can see, a borrower can save a significant amount of money each month by locking in a low interest rate.  I’d suggest not waiting too long as these rates will begin to climb soon.

If you know of someone in the Fort Collins or surrounding area that could benefit from this information please send them this blog or have them contact me directly at: RealtorMike@MikeMalvey.com and visit www.SearchFortCollinsMLS.com to look for available homes in the Fort Collins area.

Your comments and feedback are always welcomed.  We just surpassed 14, 600 views on my blog!!  Thanks for your interest.