One year ago, the average on a 30-year fixed-rate mortgage was 3.34 percent. On Thursday morning, Freddie Mac reported 4.46 with an average 0.5 point as the average on this type of loan. So, how would the difference impact your mortgage payments?
Using a $500,000 home, we took a look at the difference in monthly payments, based on the today’s interest rates as compared to last year’s.
Let’s assume that in each case, the homeowner puts down 20 percent and takes out a loan for the remaining $400,000.
Here are the two interest rate scenarios.
December 2012: The average mortgage rate was 3.34 percent.
Monthly Mortgage Payment: $1,760
Total Outlay on Mortgage (Payment x 360 months): $633,600
August 2013: The average mortgage rate is 4.46 percent.
Monthly Mortgage Payment: $2,017
Total Outlay (Payment x 360 months): $726,120
So, the difference between a rate of 3.34 percent and 4.46 percent is about $257 a month or $92,520 over the life of the loan.
Here’s a look at the path of rates since January 2010:
See other articles related to: mortgage rates
This article originally published at https://dc.urbanturf.com/articles/blog/257_a_month_the_difference_a_year_makes_in_interest_rates/7895.
Most Popular... This Week • Last 30 Days • Ever
In this edition of First-Timer Primer, we look into the question of how to determine ... read »
Here's what you need to know about reporting profit made from the sale of your home.... read »
A Roth IRA is one of those accounts that people feel is totally off limits until you ... read »
The latest edition of What $1.5 Million Buys includes a Falls Chuch home reminiscent ... read »
The now-historic Uptown Theater; the coming plans for the Landmark Mall; and the high... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
Why condo fees are high in some buildings and low in others can be a difficult questi... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
When sellers haven't quite lined up their next house before their settlement date com... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... 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. 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