Looking for a Home? Mortgage Rates Hit All-Time Low
PARMA HEIGHTS, Ohio — Mortgage interest rates have hit an all-time low, dipping to 3.78 percent on a 30-year fixed loan.
“You’re not going to buy a house cheaper than now,” said Tony Crea from Assad & Crea Realty Group in Parma Heights.
The drop in rates can be considerable for homeowners who are paying higher interest on their property.
Crea said a home buyer could sell his or her $100,000 house with a 5.75% interest rate and buy a $130,000 home in the same community at 3.78 without seeing their monthly payment change.
“[Interest rates] are historically low, and they’re staying low, which is creating a unique opportunity for everyone,” said Jeff Paul, President of Midwest Mortgage in Parma Heights.
Paul told Fox 8 News people whose homes are under water, or worth less than the mortgage, are also eligible for the low rates because of a new government program called HARP, or Home Affordable Refinance Program.
“They’re allowing you to exceed the value of the home on the loan, and although the loan is much higher than the value of the home, they’re able to refinance and take advantage of the low rates,” said Paul.
Crea said anyone who’s paying 2% more than 3.78 on their mortgage should consider refinancing. He also had advice for home buyers: Homes that used to sit for months or even a couple of years are now being snapped up.
“In the last couple of weeks, we’ve sold several houses; several multiple bids,” he said. How long can historically low-interest rates last? Paul says the economy is turning around and that leads him to believe rates will begin to rise after the November election.