Long-term mortgage rates remain just below 3% and just above their all-time record low.
A year ago, rates were 56 basis points higher, so UrbanTurf is taking its semi-regular look to see how the much lower rates are impacting mortgage payments.
We took a home with a $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.
Here are the two scenarios:
August 2019: The average mortgage rate was 3.55 percent.
Monthly mortgage payment: $2,892
Total outlay on mortgage (monthly payment x 360 months): $1,041,039
August 2020: The average mortgage rate is 2.99 percent.
Monthly mortgage payment: $2,695
Total outlay on mortgage (monthly payment x 360 months): $970,132
So, the difference between a rate of 3.55 percent and 2.99 percent is about $200 a month or $70,907 over the life of the loan.
This article originally published at https://dc.urbanturf.com/articles/blog/200-a-month-the-difference-a-year-makes-in-interest-rates/17239.
Most Popular... This Week • Last 30 Days • Ever
UrbanTurf created Pipeline, a searchable database of multifamily projects that are un... read »
As we head towards the end of the year, UrbanTurf is wrapping up its coverage of larg... read »
Prices in Wesley Heights, a DC neighborhood to the south of Spring Valley bordered by... read »
Today, UrbanTurf is looking back at the three priciest homes to sell in the DC area t... read »
Today, UrbanTurf takes a look at the distinct differences between these two popular f... read »
A new report out this week found that homes in the DC region are selling nearly a wee... read »
DC's Board of Zoning Adjustment approved the requested relief for a planned 32-unit c... read »
When Amazon announced in 2018 that it would be opening a second headquarters in Virgi... read »
A revised plan is on the boards for a group of five townhouses in the middle of China... read »
The proposed district would encompass the neighborhood's commercial strip along Conne... 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 »
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!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro