This calculator figures monthly home payments for 15-year loan terms. To help you see current market conditions and find a local lender current Redwood City 15-year and current Redwood City 30-year mortgage rates are published below the calculator.
Current Redwood City Thirty Year Mortgage Rates
The following table shows current Redwood City 30-year mortgage rates. You can use the menus to select other loan durations, alter the loan amount, change your down payment, or change your location. More features are available in the advanced drop down
Current Redwood City Fifteen Year Mortgage Rates
Here is a table listing current Redwood City 15-year fixed rates.
What Loans Do Home Buyers Choose?
Across the United States 88% of home buyers finance their purchases with a mortgage. Of those people who finance a purchase, nearly 90% of them opt for a 30-year fixed rate loan. The 15-year fixed-rate mortgage is the second most popular home loan choice among Americans, with 6% of borrowers choosing a 15-year loan term.
| Loan Type | Percent of Borrowers Buying a Home | Percent of All Home Buyers |
|---|---|---|
| 30-year Fixed | 90% | 79.2% |
| 15-year Fixed | 6% | 5.28% |
| Adjustable-rate | 2% | 1.76% |
| Other Fixed-Rate Loan Terms | 2% | 1.76% |
| Use Any Type of Financing | 100% | 88% |
| Paid Cash in Full | N/A | 12% |
Source: Freddie Mac's 2016 home buyer statistics, published on April 17, 2017.
When interest rates are low (as they were after the global recession was followed by many rounds of quantitative easing) home buyers have a strong preference for fixed-rate mortgages. When interest rates rise consumers tend to shift more toward using adjustable-rate mortgages to purchase homes.
Advantages of a 15-Year Fixed-Rate Home Loan
The big advantage of a 30-year home loan over a 15-year loan is a lower monthly payment.
However, for those who can afford the slightly higher payment associated with a 15-year mortgage are getting a better deal in almost every possible way. Here are some of the advantages of a 15-year mortgage over a 30-year mortgage:
- Lower interest rates: While both loan types have similar interest rate profiles, the 15-year loan typically offers a slightly lower rate to the 30-year loan.
- Build home equity much faster: People typically move homes or refinance about every 5 to 7 years. If a person stretches their loan payments out to 30-years they build limited equity in their home in the early portion of their loan.
- Greater life certainty: The recovery since the 2008 financial crisis has been uneven, with increasing income inequality & a greater sense of economic uncertainty than just about any economic recovery since the great recession which followed the 1929 stock market crash. The rise of globalism, monopoly technology platforms, distributed software with zero marginal cost & artificial intelligence are likely to create massive & ongoing waves of structural unemployment. Few people know what the world will be like in 20 years, so perhaps it doesn't make sense to finance the largest purchase of their lives across 30 years. Those who build equity faster will have greater certainty in their lives & won't be anywhere near as worried about what happens if they lose their job 23.5 years from today.
The following table shows loan balances on a $200,000 home loan after 5, 10 & 15 years for loans on the same home.
| Mortgage Type | 15-YR FRM | 30-YR FRM |
|---|---|---|
| Interest Rate (APR) | 3.1% | 3.7% |
| Monthly Principal & Interest | $1,416.53 | $937.60 |
| Total Monthly Payment | $2,004.02 | $1,525.09 |
| Loan Balance 5 Years | $145,999.80 | $183,333.98 |
| Loan Balance 10 Years | $78,639.08 | $158,836.20 |
| Loan Balance 15 Years | $0.00 | $129,368.36 |
| Equity Built, 15 Years | $200,000 + Appreciation | $70,631.64 + Appreciation |
| Interest Paid, 15 Years | $51,275.94 | $94,436.36 |
| Total of 180 Payments | $360,723.60 | $274,516.20 |
| Remaining P & I payments | 0 | 180 |
| Remaining Interest Expense | $0 | $39,397.24 |
| Total Interest Expense | $51,275.94 | $133,833.60 |
Please note the above used interest rates were relevant on the day of publication, but interest rates change daily & depend both on the individual borrower as well as broader market conditions.
The above calculations presume a 20% down payment on a $250,000 home & a closing cost of $3,700 which is rolled into the loan.
You can use the following calculators to compare 15 year mortgages side-by-side against 10-year, 20-year and 30-year options.
Historical 15-YR & 30-YR Mortgage Rates
The following table lists historical average annual mortgage rates for 15-year & 30-year mortgages. 2023 data is through the end of November.
| Year | 30-YR FRM Rate | 30-YR Points | 15-YR FRM Rate | 15-YR Points | 15 vs 30 Rate Diff |
|---|---|---|---|---|---|
| 2023 | 6.81 | 6.11 | -0.70 | ||
| 2022 | 5.34 | 0.81 | 4.58 | 0.85 | -0.76 |
| 2021 | 2.96 | 0.68 | 2.27 | 0.64 | -0.69 |
| 2020 | 3.11 | 0.73 | 2.60 | 0.69 | -0.51 |
| 2019 | 3.94 | 0.5 | 3.39 | 0.5 | -0.55 |
| 2018 | 4.54 | 0.5 | 4.00 | 0.5 | -0.54 |
| 2017 | 3.99 | 0.5 | 3.27 | 0.5 | -0.72 |
| 2016 | 3.65 | 0.5 | 2.93 | 0.5 | -0.72 |
| 2015 | 3.85 | 0.6 | 3.09 | 0.6 | -0.76 |
| 2014 | 4.17 | 0.6 | 3.29 | 0.6 | -0.88 |
| 2013 | 3.98 | 0.7 | 3.11 | 0.7 | -0.87 |
| 2012 | 3.66 | 0.7 | 2.93 | 0.7 | -0.73 |
| 2011 | 4.45 | 0.7 | 3.68 | 0.7 | -0.77 |
| 2010 | 4.69 | 0.7 | 4.1 | 0.7 | -0.59 |
| 2009 | 5.04 | 0.7 | 4.57 | 0.7 | -0.47 |
| 2008 | 6.03 | 0.6 | 5.62 | 0.6 | -0.41 |
| 2007 | 6.34 | 0.4 | 6.03 | 0.4 | -0.31 |
| 2006 | 6.41 | 0.5 | 6.07 | 0.5 | -0.34 |
| 2005 | 5.87 | 0.6 | 5.42 | 0.6 | -0.45 |
| 2004 | 5.84 | 0.7 | 5.21 | 0.6 | -0.63 |
| 2003 | 5.83 | 0.6 | 5.17 | 0.6 | -0.66 |
| 2002 | 6.54 | 0.6 | 5.98 | 0.6 | -0.56 |
| 2001 | 6.97 | 0.9 | 6.5 | 0.9 | -0.47 |
| 2000 | 8.05 | 1 | 7.72 | 1 | -0.33 |
| 1999 | 7.44 | 1 | 7.06 | 1 | -0.38 |
| 1998 | 6.94 | 1.1 | 6.59 | 1.1 | -0.35 |
| 1997 | 7.6 | 1.7 | 7.13 | 1.7 | -0.47 |
| 1996 | 7.81 | 1.7 | 7.32 | 1.7 | -0.49 |
| 1995 | 7.93 | 1.8 | 7.48 | 1.8 | -0.45 |
| 1994 | 8.38 | 1.8 | 7.86 | 1.8 | -0.52 |
| 1993 | 7.31 | 1.6 | 6.83 | 1.6 | -0.48 |
| 1992 | 8.39 | 1.7 | 7.96 | 1.7 | -0.43 |
| 1991 | 9.25 | 2 | |||
| 1990 | 10.13 | 2.1 | |||
| 1989 | 10.32 | 2.1 | |||
| 1988 | 10.34 | 2.1 | |||
| 1987 | 10.21 | 2.2 | |||
| 1986 | 10.19 | 2.2 | |||
| 1985 | 12.43 | 2.5 | |||
| 1984 | 13.88 | 2.5 | |||
| 1983 | 13.24 | 2.1 | |||
| 1982 | 16.04 | 2.2 | |||
| 1981 | 16.63 | 2.1 | |||
| 1980 | 13.74 | 1.8 | |||
| 1979 | 11.2 | 1.6 | |||
| 1978 | 9.64 | 1.3 | |||
| 1977 | 8.85 | 1.1 | |||
| 1976 | 8.87 | 1.1 | |||
| 1975 | 9.05 | 1.1 | |||
| 1974 | 9.19 | 1.2 | |||
| 1973 | 8.04 | 1 | |||
| 1972 | 7.38 | 0.9 |
Source: Freddie Mac PMMS.
20% Down Payment
Home buyers who have a strong down payment are typically offered lower interest rates. Homeowners who put less than 20% down on a conventional loan also have to pay for property mortgage insurance (PMI) until the loan balance falls below 80% of the home's value. This insurance is rolled into the cost of the monthly home loan payments & helps insure the lender will be paid in the event of a borrower default. Typically about 35% of home buyers who use financing put at least 20% down.
Conforming Mortgage Limits
As of 2024 the FHFA set the conforming loan limit for single unit homes across the continental United States to $766,550, with a ceiling of 150% that amount in areas where median home values are higher. The limit is as follows for 2, 3, and 4-unit homes $981,500, $1,186,350, and $1,474,400. The limits are higher in Alaska, Hawaii, Guam, the U.S. Virgin Islands & other high-cost areas. Loans which exceed these limits are classified as jumbo loans.
Homes NOT in Designated High-cost Areas
The limits in the first row apply to all areas of Alabama, Arizona, Arkansas, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Texas, Vermont, Wisconsin & most other parts of the continental United States. Some coastal states are homes to metro areas with higher property prices which qualify the county they are in as a HERA designated high-cost areas.
The limits in the third row apply to Alaska, Guam, Virgin Islands, Washington D.C & Hawaii.
| Units | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Continental U.S. Baseline | $766,550 | $981,500 | $1,186,350 | $1,474,400 |
| Designated High-cost Areas | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
| Alaska, Hawaii, Guam & U.S. Virgin Islands | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 |
Redwood City Homeowners May Want to Refinance at Today's Low Rates & Save
Contact New American Funding today to see how much you can save.
- Lower Interest Expenses: Pay off higher interest rate credit cards & pay for college tuition.
- Leverage Your Equity: Cash out & debt consolidation options available.
- Trusted Lender: Over 170,000 positive reviews with an A+ rating with BBB.
- Flexible Terms: Borrow from 8 to 30 years.
Redwood City Homeowners May Want to Refinance at Today's Low Rates & Save
Contact New American Funding today to see how much you can save.
- Lower Interest Expenses: Pay off higher interest rate credit cards & pay for college tuition.
- Leverage Your Equity: Cash out & debt consolidation options available.
- Trusted Lender: Over 170,000 positive reviews with an A+ rating with BBB.
- Flexible Terms: Borrow from 8 to 30 years.
As an expert in personal finance and real estate, I bring a wealth of knowledge to the table to help you navigate the complex world of mortgages and home financing. With a deep understanding of market conditions, lending practices, and historical trends, I can shed light on the intricacies of the topic at hand.
Let's dive into the key concepts covered in the article about the Redwood City mortgage rates and home loan options.
-
Mortgage Loan Types and Preferences:
- According to Freddie Mac's 2016 home buyer statistics, 88% of home buyers in the United States finance their purchases with a mortgage.
- Among those using financing, 90% opt for a 30-year fixed-rate loan, while 6% choose a 15-year fixed-rate mortgage.
-
Advantages of a 15-Year Fixed-Rate Home Loan:
- The primary advantage of a 15-year mortgage over a 30-year mortgage is a lower interest rate.
- Faster equity building: Homeowners with a 15-year loan build home equity much faster than those with a 30-year loan.
- Greater life certainty: A 15-year mortgage provides more certainty in an uncertain economic environment, especially considering factors like income inequality and technological advancements.
-
Loan Comparison and Mortgage Balance over Time:
- The article includes a table comparing a $200,000 home loan for 15 and 30 years, showing monthly payments, loan balances after 5, 10, and 15 years, equity built, and interest paid.
-
Historical Mortgage Rates:
- The article provides historical average annual mortgage rates for 15-year and 30-year mortgages from 1972 to 2023. It highlights the rate differences between the two types over the years.
-
Down Payment Impact on Interest Rates:
- Home buyers with a strong down payment typically receive lower interest rates.
- Those putting less than 20% down may have to pay for private mortgage insurance (PMI) until the loan balance falls below 80% of the home's value.
-
Conforming Mortgage Limits:
- The Federal Housing Finance Agency (FHFA) sets conforming loan limits. As of 2024, the limit for single-unit homes in the continental U.S. is $766,550. Limits vary for 2, 3, and 4-unit homes, and higher limits apply to designated high-cost areas.
-
Refinancing Opportunities:
- The article suggests that homeowners in Redwood City may want to refinance at current low rates to lower interest expenses, leverage equity, and benefit from flexible loan terms.
In conclusion, understanding mortgage options, historical trends, and factors influencing interest rates is crucial for making informed decisions when it comes to home financing. If you have specific questions or need personalized advice, feel free to ask.
