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.
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.
This article originally published at http://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
Approximately 16,550 units delivered in DC between January 2019 and August 2021.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The seven-bedroom home hit the market on Friday and was under contract by Sunday.... read »
This year will likely go down as the year that prices for houses in DC reached new he... read »
Dubbed OZMA, the 13-story project will include roughly 7,900 square feet of ground fl... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The 12,000 square foot replica of 1600 Pennsylvania Avenue went under contract last w... 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