“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” - Oscar Wilde
For some reason a lot of people don’t question or don’t look at the rates they are
paying for common financial services such as mortgages, savings, credit cards,
car loans, etc. Maybe they think they are not important, they are insignificant,
just haven’t gotten around to it or maybe they just don’t care. If any of these
fit you, keep reading, it may change your mind!
Basically you want your money working as hard for you as you did to get it. So…
- Are you earning as much as you can on your savings
- Are you paying as little as possible when you borrow?
Periodically (at least monthly) it is advisable to keep an eye on the rates you earn on your savings and those you pay when you borrow. Just a small change on a savings rate and especially a loan rate can save you big money over time.
Example
You have a $200,000, 30-year mortgage that you got at 6.5 percent. As a result over the life of the loan you’ll pay a $255,000 in interest. If you could lower that to 5 percent your interest would be $186,500. That’s a savings of $68,500! That just might be worth a little of your time, even if you are Donald Trump. That could put one or two of your kids through college, help you start your own business, help build an emergency fund or help you to retire with more available money.
Rates
Here are the latest rates according to Informa Research Services.
Mortgage loans
Mortgage rates were down slightly last week, with 30-year fixed rates averaging 4.98 percent vs. the prior week’s 5.01. Expectations for this year are for rates to be volatile but rise gradually as the economy continues to recover. All the more reason to keep an eye on them so you don’t miss a valuable opportunity.
The annual percentage rates (APRs) mentioned are based on borrowers with good credit for a $200,000 purchase loan for an owner-occupied, single-family residence, with a 20-percent down payment.
- 15-year fixed: The average APR last week was 4.24 percent, and the high was
6.66 percent. - 30-year fixed: The average APR last week was 4.98 percent, and the high was
6.98 percent.
Home equity loans
- Home equity line of credit: The average APR last week was 5.01 percent, unchanged from the week before. The high was 9.25 percent.
- Home equity loans: The average APR last week was 6.88 percent, and the high was 9.25 percent.
Car loans
- 4-year new car loans: The average rate last week was 4.87 percent – slightly lower than the week before. The high was 10.5 percent.
Credit cards
- Platinum card: The average rate last week was 10.01 percent, and the high
rate was 24.9 percent: both unchanged from the week before. - Reward card:
The average rate last week was 11.90 percent, and the high rate was 24.90
percent: unchanged. - Introductory rate card: The average rate last week was 1.71 percent, and the high rate was 7.90 percent: unchanged.
Savings rates
With the Feds holding down the prime interest rate your most beneficial areas to watch are various loans and credit card rates. Savings are so low at the moment that doubling the rate is still almost nothing. But here they are just in case you need to know.
Certificates of deposit (CDs)
With the Feds continuing to hold interest rates low, rates on CDs can be very low. The rates change depending on maturities.
- 3 month: The average rate last week was .26 percent, up .06 percent from the prior week. The low was unchanged at .01 percent.
- 6 month: The average rate last week was .40 percent, and the low was .01 percent: both unchanged.
- 12 month: The average rate last week was unchanged at .61 percent, and the low was .01 percent: both unchanged.
- 24 month: The average rate last week was unchanged at .94 percent, slightly lower than the week before, and the low was unchanged at .01 percent.
- 36 month: The average rate last week was unchanged at 1.26 percent, a tick higher than the previous week, while the low was unchanged at .01 percent.
Money market accounts
The average money market account last week was paying .29 percent, while the low was .01 percent: both unchanged.
Would any of these rates be beneficial to you? If so, shop around, call your local banks or use the internet. A little of your time can be worth a lot sometimes…this could be one of them.
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