What's Hot: Whole Foods at Walter Reed to Open at End of June | Will This Be the DC Area's First $60 Million House?
$200 a Month: The Difference a Year Makes in Interest Rates
One year ago, the average on a 30-year fixed-rate mortgage was 4.66 percent. Today, Freddie Mac reported 4.06 percent as the average on this type of loan, a 60 basis point drop over 12 months. So, UrbanTurf decided to see how that change in rates impacts mortgage payments.
To get a sense, we took a home with a $700,000 purchase price and assumed our 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:
May 2018: The average mortgage rate was 4.66 percent.
Monthly mortgage payment: $2,890
Total outlay on mortgage (monthly payment x 360 months): $1,040,732
May 2019: The average mortgage rate is 4.06 percent.
Monthly mortgage payment: $2,692
Total outlay on mortgage (monthly payment x 360 months): $969,455
So, the difference between a rate of 4.66 percent and 4.06 percent is $198 a month or $71,277 over the life of the loan.
See other articles related to: interest rates
This article originally published at https://dc.urbanturf.com/articles/blog/200-a-month-the-difference-a-year-makes-in-interest-rates/15434.
Most Popular... This Week • Last 30 Days • Ever
A look at the larger residential developments in the works from Cardozo to Mount Vern... read »
The Heights, a ten-stall food hall that is taking over the spaces formerly occupied b... read »
A piece of legislation quietly introduced in the House of Representatives earlier thi... read »
Whole Foods announced yesterday that the 47,000 square foot store will open on June 2... read »
Developer EYA and the Washington Metropolitan Area Transit Authority will go before D... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
The residential projects that have sprouted up on the Maryland and DC sides of the Fr... read »
With a groundbreaking ceremony on Wednesday, the redevelopment of the Georgetown Wes... read »
The 23,600 square-foot mansion just hit the market, and would set a record if it fetc... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... 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 »
- The 9 Developments and 1,250 Units in the Works For Shaw
- Friendship Heights Food Hall Could Open This Month
- Will This Proposed Bill Increase the Number of Homes For Sale?
- Whole Foods at Walter Reed to Open at End of June
- 435-Unit Development Planned For Takoma Metro Station Looks For Historic Approval
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- Mall Conversions, Trader Joes? The 1,500 Units in the Friendship Heights Pipeline
- The Four Seasons Private Residences in Georgetown Break Ground
- DC's Blaine Mansion Lists For $30 Million, A Potentially Record-Setting Price in the City
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
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