Low Rates Helping Borrowers Pay Off Mortgages at Record Pace
Home prices may be astronomical in certain parts of the country, but historically low mortgage rates are allowing borrowers to pay off their mortgages faster than ever. At today’s average rates, 61% of a new homebuyer’s very first mortgage payment is going towards principal repayment, according to data from Edge Realty Analytics.
In the early 2000s, that percentage was 26.5%. The change is even more drastic when looking back at the 1990s, where just 11.9% of a homebuyer’s first payment went towards paying down the principal, or the 1980s, when that percentage was a minuscule 4.6%.
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Original Article Source Credits: Canadian mortgage trends, https://www.canadianmortgagetrends.com
Article Written By: Steve Huebl
Original Article Posted on: June 22, 2021
Link to Original Article: https://www.canadianmortgagetrends.com/2021/06/low-rates-helping-borrowers-pay-off-mortgages-at-record-pace