Why is everyone talking about “low interest rates”?

Gino Montalvo
Gino Montalvo
Published on January 4, 2021

Interest Rate This… Interest Rate that!?!

Chances are in the past 9 months you’ve heard someone in Real Estate mention…

“OMG, the rates are so low” “Have you heard how LOW the rates are right now? “Rates have never been LOWER!”

And you nod your head and say “That’s cool!” 

But really you’re thinking… “What’s that got to do with me?”

So here’s where I see other Realtors and Lenders online make the same mistake

They’re so busy SHOUTING from the rooftop that…


But they’re not explaining what that means

So, let me explain in NON Realtor speak


Yup, that’s basically what it means… one of the positives over the past 9 months our world has been in a pandemic is that when all this started the government went

“Oh shit, we don’t want people to stop borrowing money…” and lowered the interest rates on home loans lower than they ever have before.

For example, I just searched my email for a “closing disclosure” from January of 2019 – Oh a “closing disclosure” is paperwork that is sent out by the lender to a buyer before closing showing all their final numbers… including their interest rate on their loan.

So, you ready for this?

Exactly a year ago the average interest rate our buyers were getting was 4% (Which was awesome btw)

I also searched my email for a closing disclosures for clients closing on their homes this week.

The average interest rate is 2.375%!

In $$$ what does this mean?

Well lets just say for a $250,000 home… the monthly payment is $215 less today than it was exactly a year ago!

That’s THOUSANDS of $$$$ you would save a year!!

Not to mention the 10s of THOUSANDS you would save over the life of your loan!

So, to end my long ass email you didn’t even ask for

Let me just say…

“OMG, the rates are so low” “Have you heard how LOW the rates are right now? “Rates have never been LOWER!”

and now you know why we’re all yelling!

Hope y’all have a great week and if you need anything or have questions give me a shout

– Gino

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