Have you wondered how mortgage rates north of 6% are considered historically low? Here is the answer according to Bankrate.com.
Bankrate has been tracking the 30-year fixed since September 1985. In nearly 22 years, the 30-year fixed has averaged 7.99 percent. Today's rates are under that and thereby considered "Historically Low."
From September 1985 to the end of 1989, the 30-year fixed averaged 10.45%. In the early '80s people were getting 30-year fixed-rate mortgages close to 20%! In the 1990s, the 30-year averaged 8.03%, and so far in the 2000's, it has averaged 6.53%.
If you compare today's rates with those charged in the 1980s and 1990s, we're getting good deals but, if you compare with what's been available over the past four to seven years there's less to cheer about.
Mortgages are but one form of consumer debt. Look at your overall debt picture rather than individual loan rates. For those carrying credit card balances, home equity lines or higher rate 2nd mortgages, consolidating into a new 1st mortgage (even when the rate is higher) may still be beneficial. Monthly cash flow savings may enable you to pay down the new mortgage faster than your current debt structure and mortgage interest is usually tax deductible where credit card interest is not. I would be happy to run a comparison without obligation.
Greg Zaccagni @ www.MortgageAdvisor.info
See related article:
Does Debt Consolidation Make Sense?
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