Buzz
If you're considering purchasing a home soon, you're in luck: low interest rates are currently in your favor. Mortgage rates are at historic lows, making your overall home purchase more affordable, as GOBankingRates reports. They reviewed average rates nationwide and compiled a list of the best and worst states for securing a home loan.
GOBankingRates outlines how mortgage rates have evolved over the years:
As per Freddie Mac, mortgage rates peaked at 16.63% in 1981 before dropping to 6.41% in 2006, right before the recession. At that rate, the total interest paid on a loan (based on the current median home price of $215,000) would be $215,718, with monthly payments around $1,301. In comparison, the 2013 average of 3.98% would halve the total interest to $122,902 and reduce monthly payments by more than $250.
The website teamed up with RateWatch to gather data on mortgage rates across the U.S. They ranked the 10 most affordable and least affordable states for securing a mortgage.
States with the most affordable mortgage rates include Rhode Island, Connecticut, Nevada, and Pennsylvania. Here's a look at the average rates in each of these states:
Some of the states with the highest mortgage rates are Nebraska, South Dakota, Wyoming, and Vermont.
Take a look at the full map, complete with rate ranges, and click the link for more detailed information on each state.
