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Mortgage rates drop again in April

Mortgage rates play a major role in how many people take out mortgages and when. When mortgage rates are low, you can purchase a home with less interest, making it more appealing. When they're high, it's harder to get a mortgage with lower interest rates, making it less likely for people to buy at that time.

An April 5 report showed that mortgage rates had dropped again. The average rates found for 15-year, 30-year and 5/1 adjustable-rate mortgages had all dropped. Since these are at a lower rate, it's a good time for people who want to purchase a home or property to begin looking into a mortgage.

Mortgage rates change constantly, so what happens today might not happen tomorrow. This is why it's so important for those looking to buy a property to stay apprised of mortgage rates.

As of April 5, the average rate for a 30-year mortgage was 3.95 percent, which is down 6 basis points from the previous week. A month ago, that same mortgage had an average rate of 4.11 percent.

What does that mean when you break it down into payments? Look at a home that costs $100,000. At the present average rate, you would pay $474.54 a month in interest and principal. Last week, you would have paid $3.45 more. Although that does not seem like much, over the course of a loan, those differences add up over time.

Before you decide on a mortgage, talking to your attorney about how it affects your estate is a good idea. You want to make good financial decisions that benefit your future.

Source: Bankrate, "Mortgage Rates for Wednesday April 5," Claes Bell, April 05, 2017

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