Today’s Low Interest Home Rates Have Historic Significance

If you have been paying any attention to the real estate lending industry the past couple of years, then you have certainly heard experts talking about the low interest rates home loans can have. Mortgage interest rates have been such an exciting subject because interest rates for home loans have hit historically significant lows. This makes for plenty of conversation and speculation amongst those who work in the lending and real estate industries.

Lower Interest Rates: Home Loans

During February 2010, interest rates home loans can have on 30-year mortgages dropped below 5%. The interest rates on 15-year home loans dropped below 4.5%. Why are these interest rates home loans can have so historically significant? Consider that before 2010, the lowest interest rate on a 30-year mortgage since 2000 was around 5.25% in the summer of 2003. Ten years before that the interest rates for 30-year home mortgages were closer to 7.5%.

The Real Difference in Today’s Interest Rates for Home Loans

Sure, interest rates are lower now than they have been in decades, but what exactly does that mean to the average consumer? Well, they don’t have to spend as much money when using loans to buy houses. That’s certainly good news. If you were to use a 7.5% interest mortgage to purchase a home in 1993, then you would have spent $15,000 in interest alone. With a 4.5% rate, though you would have spent $5,000. That’s an automatic savings of $10,000 just for buying a home while interest rates are low.

Finding Low Interest Rate Home Loans Today

The only problem with today’s lower interest home rates is that fewer lenders are wiling to give loans to consumers who don’t have near-perfect credit. The lower interest rates home loans can have are terrific for those who can qualify, but many potential home buyers have had difficulty getting loans at all.