After a steady rise over the last 18 months, long-term mortgage rates have now fallen for five weeks in a row. So today, UrbanTurf is taking a look to see how current rates are impacting mortgage payments compared to a month 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 late October, 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:
October 2023: The average mortgage rate was 7.79 percent.
Monthly mortgage payment: $4,751
Total outlay on mortgage (monthly payment x 360 months): $1,710,407
December 2023: The average mortgage rate is 7.2 percent.
Monthly mortgage payment: $4,480
Total outlay on mortgage (monthly payment x 360 months): $1,612,802
So, the difference between rates over the last five weeks is $270 a month or about $98,000 over the life of the loan.
This article originally published at https://dc.urbanturf.com/articles/blog/270_a_month_the_difference_5_weeks_makes_in_interest_rates/21748.
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