What's Hot: 702,000: DC Sees Population Rise Again In 2024
$116 a Month: The Difference a Year Makes in Interest Rates
✉️ Want to forward this article? Click here.
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 below
loading...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
If the home ultimately sells for around that list price, it would set a record as the... read »
The federal government could be shut down by the end of today, and that shutdown coul... read »
Right on the heels of a $29 million home along Foxhall Road going under contract to T... read »
New data shows that DC continues to make up for population losses experienced during ... read »
The 16,250 square-foot home along Foxhall Road NW owned by Fox News anchor Bret Baier... 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