What's Hot: The Grass House in Anacostia | 6.13%: Mortgage Rates Fall Again
$300 a Month: The Difference a Year Makes in Interest Rates
The average on a 30-year fixed-rate mortgage dropped to 3.15% last week, the lowest level ever for these type of rates.
A year ago, long-term rates were just under 4 percent (3.99 percent), so it feels fitting for UrbanTurf to take its semi-regular look to see how record-low rates are impacting mortgage payments.
We took a home with a $800,000 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 below
loading...story continues above
Here are the two scenarios:
May 2019: The average mortgage rate was 3.99 percent.
Monthly mortgage payment: $3,051
Total outlay on mortgage (monthly payment x 360 months): $1,098,636
May 2020: The average mortgage rate is 3.15 percent.
Monthly mortgage payment: $2,750
Total outlay on mortgage (monthly payment x 360 months): $990,112
So, the difference between a rate of 3.99 percent and 3.15 percent is $300 a month or $108,524 over the life of the loan.
See other articles related to: freddie mac, interest rates, mortgage rates
This article originally published at https://dc.urbanturf.com/articles/blog/300-a-month-the-difference-a-year-makes-in-interest-rates/16901.
Most Popular... This Week • Last 30 Days • Ever

There are two new proposals to redevelop the center at 14th and U Streets NW that are... read »

Dupont Circle’s Swann House, a former 15-bedroom bed and breakfast, will be listed ... read »

A recent build in Anacostia made history as the first code-compliant bamboo building ... read »

The recently-filed amendment would help move redevelopment of a police and fire stati... read »

A recent filing with DC indicates that a large new residential development in Glover ... read »
- Apartments, Amphitheaters, and Dave Chapelle: The Revised Proposals For DC's Reeves Center
- One of Dupont Circle's Oldest Mansions to Hit the Market
- The Week's Find: The Grass House in Anacostia
- Map Amendment Could Pave Way For Big U Street Redevelopment
- PUD Modification Filed For 256-Unit Project Planned in Glover Park
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!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro