Where Are Interest Rates Heading in Detroit?

Your Local Real Estate Expert - Michael Perna

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Today, we have some great news for you. Over the last few weeks, interest rates have been coming down. If you've received a home loan sometime in the last few months, you've probably noticed that rates are hovering between 4.25% and 4.4%.

Let's say you have a $200,000 home loan with an interest rate of 4.25%. Your principal and interest payment would be roughly $989 a month on a 30-year fixed mortgage. Recently, I've seen closings with interest rates as low as 3.6%! If you locked in this rate now, instead of the 4.25% rate, your monthly payment would only be around $907, for a savings of about $80 a month! Over the course of a year you could save $960, and about $2,000 over two years!

If you have an FHA loan, we have some good news for you. FHA has lowered its basis points from 1.35% to .8%! This means that if you got an FHA rate sometime in the last three years, you're probably paying $120 to $150 a month in mortgage insurance. You could have it reduced to $65 to $110 a month if you refinanced! This is a $50-a-month savings per loan, which is fantastic. FHA also offers something called FHA Streamline, which allows you to obtain a loan without having to deal with appraisals, credit checks, and underwriting, all for $300.

We have several lenders we can refer you to if any of these opportunities interest you. Give us a call or shoot us an email - we would love to figure out whether now is the best time to make your move and discuss your options. We look forward to hearing from you soon!