$116 a Month: The Difference a Year Makes in Interest Rates
As interest rates rise above 3 percent, UrbanTurf is taking its semi-regular look to see how current rates are impacting mortgage payments compared to a year ago.
We took a home with an $800,000 purchase price and assumed the buyer has excellent credit. Using the current rates and rates from last year, we examined how monthly mortgage payments changed. In each case, we assumed the buyer put down a 20 percent down payment. Note that these include principal and interest, but not the cost of insurance or taxes.
story continues belowloading...
story continues above
Here are the two scenarios:
February 2020: The average mortgage rate was 3.50 percent.
Monthly mortgage payment: $2,873
Total outlay on mortgage (monthly payment x 360 months): $1,034,597
February 2021: The average mortgage rate is 3.17 percent.
Monthly mortgage payment: $2,757
Total outlay on mortgage (monthly payment x 360 months): $992,626
So, the difference between a rate of 3.50 percent and 3.17 percent is $116 a month or $41,971 over the life of the loan.
This article originally published at https://dc.urbanturf.com/articles/blog/116-a-month-the-difference-a-year-makes-in-interest-rates/18062.
Most Popular... This Week • Last 30 Days • Ever
509 Lloyds Lane features 6,000 square feet of naturally lit space, six fireplaces, a ... read »
Clarion Partners, the owner of the Chevy Chase Pavilion, has filed modifications to i... read »
Where it's cheaper to build than buy; Elon Musk is not making Texas happy; and the wo... read »
New renderings show the public space that will be part of the huge new residential de... read »
Several large projects are in the works across the Potomac in Rosslyn while others ha... read »
At an ANC 4A meeting on Tuesday night, representatives from Whole Foods said that the... read »
While homeowners must typically appeal by April 1st, new owners can also appeal.... read »
The application has been filed for the American City Diner along Connecticut Avenue i... read »
The 650,000 square-foot project, designed by Adjaye Associates and Hickok Cole, will ... read »
The largest development on the boards for the H Street Corridor is planned for a fami... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- In a Highly Desirable Alexandria Location, This Newly Listed Six Bedroom Home is a Timeless Classic
- Plans Progress For a New Grocery Store at Friendship Heights Mall
- Friday's Must Reads
- New Renderings Show Retail Plaza, Park at 435-Unit Takoma Metro Development
- The 2,600 Units in Progress, and 500 Units on Hold, in Rosslyn
- Whole Foods at Walter Reed To Open This Summer
- How to Appeal Your DC Property Tax Assessment
- Raze Application May Spell The End For One of DC's Last Diner Buildings
- A First Look at the Five-Building Centerpiece of the St. Elizabeth's Redevelopment
- 200-Unit Apartment Project Planned For Autozone Site Along the H Street Corridor
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. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro