The Interest Rate Bonanza
March 19, 2012
I am in the process of cleaning out my files. I came across a chart listing VA interest rates since June of 1935, apparently the day VA loans were first being offered. This particular printout continues with the rates as they changed through the years from 1935 until 1992, the date of the chart. It is a fascinating history!
In June of 1935, the initial rate was 5.00%. In August of 1939, the rate dropped to 4.50% and remained there until April of 1950 when it dropped again to 4.25%. By 1956 the interest rate was back up to 5.00%. In October 1966 the rate rose to 6% and in January 1970, it rose to 8.50%. Until the past several years, the interest rate never returned to the initial 5.00%. It peaked in September 1981 at 17.00%.
Today the interest rate is 3.875% an historical low. While the chart I found references VA interest rates, FHA and convention rates are also averaging in the mid to high 3.00% range.
The difference between a 6.00% interest rate and a 3.875% interests rate is $1.29 per $1000 of loan amount. For a 6.00% interest rate for thirty years you pay $6.00 per $1000. For a 3.875% interest rate it will cost $4.71 per $1000.
If you are considering buying a property, it would seem that taking advantage of these favorable rates would be a wise decision.
I am in the process of cleaning out my files. I came across a chart listing VA interest rates since June of 1935, apparently the day VA loans were first being offered. This particular printout continues with the rates as they changed through the years from 1935 until 1992, the date of the chart. It is a fascinating history!
In June of 1935, the initial rate was 5.00%. In August of 1939, the rate dropped to 4.50% and remained there until April of 1950 when it dropped again to 4.25%. By 1956 the interest rate was back up to 5.00%. In October 1966 the rate rose to 6% and in January 1970, it rose to 8.50%. Until the past several years, the interest rate never returned to the initial 5.00%. It peaked in September 1981 at 17.00%.
Today the interest rate is 3.875% an historical low. While the chart I found references VA interest rates, FHA and convention rates are also averaging in the mid to high 3.00% range.
The difference between a 6.00% interest rate and a 3.875% interests rate is $1.29 per $1000 of loan amount. For a 6.00% interest rate for thirty years you pay $6.00 per $1000. For a 3.875% interest rate it will cost $4.71 per $1000.
If you are considering buying a property, it would seem that taking advantage of these favorable rates would be a wise decision.
posted by shirley harry at 8:36 AM
0 Comments:
Post a Comment
<< Home