I can get variable rate loan with a 20-year term. The current interest rate is 4%, which is based on the prime rate. I know there’s no precise answer to this question, but what might I expect the overall interest rate to turn out to be? Just a ballpark answer is fine!
Thanks!
What Average Interest Rate Should I Expect To Pay On A 20-year Loan, If The Variable Rate Is 4% Right Now?
July 13th, 2010 by Home Loans Leave a reply »
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Interest rates are very low now, probably at the lowest point possible. Most likely your interest rates will be a lot higher in a few years when interest rates return to normal, I would guess that it can easily be 8%-9%. The website below has a history of the prime rate. Unless you expect to pay off the loan in a few years, you are probably better off with a fixed rate.