Interest rates on the safest and most popular types of mortgages fell to record lows this week.
The average cost of a 30-year, fixed-rate mortgage was 5.06% in Bankrate’s latest weekly survey of major lenders.
That’s the lowest average since the survey began in 1985, whacking seven-hundredths-of-a-point off the previous record of 5.13% set in April.
That means your principal and interest payments will be just $522 a month for every $100,000 you borrow.
Pay a point or two, and you’ll be able to cut that to 4.375% and lower your payments to $500 a month for every $100,000 you borrow.
The average cost of a 15-year mortgage also fell to a record low 4.48% in the new survey.
Until the past couple of weeks, the average had never fallen below 4.72%, which it reached in April and September 2003.
Even jumbo loans — 30-year, fixed-rate mortgages for more than $417,000 to $729,500, depending on the market — are cheaper than they’ve been in years.
The average rate has fallen below 6% for the first time since September 2005, reaching 5.95% in the new survey.
Qualify for one of these loans and you’ll never have to refinance or worry about your mortgage again.
They’re safe, totally predictable loans that carry none of the risks associated with interest-only or adjustable-rate mortgages.
You’ll never have to fret about interest rates going up, principal payments kicking in or any other nasty surprises driving up your housing costs a few years down the road.
Check back Sunday for our latest look at the best mortgage rates.