$257 a Month: The Difference a Year Makes in Interest Rates
One year ago, the average on a 30-year fixed-rate mortgage was 3.34 percent. On Thursday morning, Freddie Mac reported 4.46 with an average 0.5 point as the average on this type of loan. So, how would the difference impact your mortgage payments?
Using a $500,000 home, we took a look at the difference in monthly payments, based on the today’s interest rates as compared to last year’s.
Let’s assume that in each case, the homeowner puts down 20 percent and takes out a loan for the remaining $400,000.
Here are the two interest rate scenarios.
December 2012: The average mortgage rate was 3.34 percent.
Monthly Mortgage Payment: $1,760
Total Outlay on Mortgage (Payment x 360 months): $633,600
August 2013: The average mortgage rate is 4.46 percent.
Monthly Mortgage Payment: $2,017
Total Outlay (Payment x 360 months): $726,120
So, the difference between a rate of 3.34 percent and 4.46 percent is about $257 a month or $92,520 over the life of the loan.
Here’s a look at the path of rates since January 2010:
See other articles related to: mortgage rates
This article originally published at https://dc.urbanturf.com/articles/blog/257_a_month_the_difference_a_year_makes_in_interest_rates/7895.
Most Popular... This Week • Last 30 Days • Ever
The National Park Service has given the green light for DC's 62 year-old stadium to b... read »
On Wednesday, Airbnb launched the Icons Collection, approximately a dozen "one-of-a-k... read »
Plans for another residential project in downtown Bethesda are moving forward.... read »
Cash-out refinancing is a popular financial strategy that allows homeowners to conver... read »
This weekend, the Gallery-Place Chinatown Task Force pitched its ideas to Mayor Murie... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro