Newport RI Real Estate Blog

RI mortgage rates are lower than they have ever been in recorded history!  Your savings over time will be enormously higher than the $8,000 tax rebate.  As of today, August 20, 2010, the current average rate for a 30 year fixed loan is 4.75 percent, and the 15 year fixed rate is at 4% (view full post for chart).  The stimulus package was nice, but the money you will save by financing at these rates is nicer.  Consider this example: if you bought a house for $300,000 last year and financed 80% at 6%, your interest payments for the first 3 years would be $42,402.  Three years of interest payments for the same purchase today at 4.75% would total $33,411.  That's almost $9,000 less, and these savings continue for up to 30 years.  So don't feel bad about missing out on that stimulus package.  This is WAY better.