Historical mortgage rates in the USA: Highest High and Lowest Lows

If you have a $300,000 mortgage with a 30-year fixed rate of 5.5%, you would pay roughly $313,000 in total interest during the loan term. If you got a home loan of the same size but with a 15-year fixed rate of 5.0%, it would cost just $127,000 in interest. That is a total savings of roughly $186,000.

5. Loan amount

Mortgage rates on smaller mortgages are typically higher than average rates since those loans are not as profitable for the lender. Since lenders have a higher risk of loss, rates on jumbo mortgages are generally higher, as well. Jumbo loan rates have, however, reversed their trajectory, staying below conforming rates in 2022. This has created better deals for jumbo loan borrowers. In most parts of the US, a jumbo mortgage is any home loan above $726,200.

6. Discount points

In exchange for cash up front, discount points—which cost 1% of the home loan amount—can lower interest rates by roughly 0.25%. 

For example, for a home loan of $200,000, a discount point would cost $2,000 up front. Due to savings earned by a lower interest rate, however, the borrower could recoup the up-front cost over time. Because interest payments play out over time, a homebuyer that wants to sell the property or refinance in a few years could potentially skip over the discount points and pay a higher interest rate for a period.

'width' : 300, 'params' : {} }; document.write('');

As we have seen, there are many factors that can affect your mortgage rate. It can be a very tricky road to navigate, and we advise you to speak to the best mortgage professional in your area for assistance. They can help you see the bigger picture. Historical mortgage rates have skyrocketed above 18% and plummeted below 3% since record keeping began in 1971.

Leave a Comment