Interest rates just dropped to 4%! Fantastic news for buyer’s affordability in our area! This drop was a blindside change in the market because rates were already at their lowest in the past 11 months. Many lenders are already quoting loans with rates close to 4% while others may take a few days to catch up. With imperfect loan files, 4.25% is still the optimum rate, but hopefully with the drop, lenders will follow suite quickly.
The rates were at a consistent 4.16% and dropped by .08 to 4.08%. This may seem like a small difference but in a loan for $400,000, it will save you thousands of dollars. It is an even more significant drop if you already have a loan with a higher interest rate than the previous 4.16% and are considering refinancing.
Rates can fluctuate daily and different banks will offer different rates. You may be offered a different rate depending on your credit score, your loan amount, any outstanding debt, and how much you are able to put down on your home purchase. You can also work with your lender to buy down your interest rate. Basically, the more money you give them up front, the better rate they can offer you. But talk with your realtor and run the numbers to make sure it is worth the up front cost for the long run savings.
Please feel free to email or call me if you are considering buying or refinancing in the Northern VA area!
For more info, call me at 703-400-6757or email jennifer@jyhteam.com.
