We started building our house last June. Closed on the construction loan at the end of May, 2024. Our interest rate was 8.375%, and at that time interest rates were climbing every day. They topped out at close to 10% for construction loans that summer.

Fast forward a year and we are finishing up construction. We have the option to float down our rate at the end of construction to current market rate.

Just signed the paperwork to float the rate down to 6.50%. Nearly a 2% difference from when we started a year ago. It will save us $500 a month just on our monthly payment in interest.

Thank you, Mr. Trump

nice!

Your lucky at 8%

In 1985 I borrowed at 17.5%, remortgaged in the early '90s if I remember right, down to a fixed 12% and thought I was in heaven! Payment stayed the same but it took 5 years off.

Then in 1997 I took a mortgage out for my business at 8%.

Congrats on your home!

That's currently a decent rate CD2, but if you signed into a mortgage that has a variable or adjustable rate that floats with the prime rate, then you could be faced with a substantial payment increase in the future, if the prime rate increases.

If you locked in at 6.5%, then disregard my above comment.

Trying to sell our lake home. We have a sheltered harbor and lots of extras. Can't help thinking high interest rates are making it hard to sell.

We just sold 4 properties of my parents last year and every single person that looked complained about interest rates.

Because everyone got spoiled with near-zero interest rates. Now they all think normal (or low compared to the rates you mentioned in the 80s) are "high". IMO the rates don't need to be any lower than they are now.

That's what I replied with, then the rates I paid, lol

Most of them didn't believe rates were that high back then.

And yeah, can't get a good rate on savings if the rate on loans is down.

It's locked at 6.5% Swamp. It's part of the loan structure that end of the construction you have the option to pay $1500 to float down to current market rate if it is lower than the rate you started with. But it's a fixed rate, not variable

Here I can lock in at 4% but I’m hoping the rates come down a bit more this Fall.

How come interest rates are so high down there?

I refinanced about five years ago. Got a ten year rate of 1.875%. My son go a 15 year rate of 2%.

2.75% during the Fanny may Freddy Mack collapse…

I could barrow against my savings for 1.25%…..

Won't get that now.

As a youngster in the 70s, I still remember getting 7-8% interest on the money in my bank account.....those were the days. Of course, I wasnt paying double digit mortgage interest either in those days.

Just refinanced the last five years of ours for 3.75%, which is higher than the previous 5. This good rate I’m reading about don’t seem all that great. I’m with JP and wonder why so high.

Does anyone remember when a savings account in a local bank paid 6% interest?
And when you had a loan, the interest was a tax deduction?

Interest rates in Canada are a lot lower cuz if they were any higher, the housing/real estate bubble would burst,,

compare the home prices in similar regions between Canada/US