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$235 A Month: The Difference 3 Months Makes In Interest Rates

  • September 12th 2025

by UrbanTurf Staff

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Mortgage rate chart_09-11-25.png

Long-term mortgage rates, while still high compared to several years ago, have dropped notably since the end of May. So today, UrbanTurf is taking a look to see how current rates are impacting mortgage payments compared to the beginning of the summer. 

We took a home with an $800,000 purchase price and assumed the buyer has excellent credit. Using current rates and rates from late May, 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:

May 2025: The average mortgage rate was 6.9 percent.

Monthly mortgage payment: $4,215
Total outlay on mortgage (monthly payment x 360 months): $1,517,415

September 2025: The average mortgage rate is 6.35 percent.

Monthly mortgage payment: $3,982
Total outlay on mortgage (monthly payment x 360 months): $1,433,629

So, the difference between rates is $233 a month or about $83,786 over the life of the loan.

See other articles related to: interest rates, mortgage rates

This article originally published at https://dc.urbanturf.com/articles/blog/235_a_month_the_difference_3_months_makes_in_interest_rates/23858.

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