The rise in long-term interest rates in recent months has changed the budget outlook for many homebuyers.
So today, UrbanTurf is taking a look to see how current rates are impacting mortgage payments compared to just three months 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 April, 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:
April 2022: The average mortgage rate was 4.67 percent.
Monthly mortgage payment: $3,307
Total outlay on mortgage (monthly payment x 360 months): $1,190,000
July 2022: The average mortgage rate is 5.51 percent.
Monthly mortgage payment: 3,637
Total outlay on mortgage (monthly payment x 360 months): $1,309,629
So, the difference between a rate of 4.67 percent and 5.51 percent is $330 a month or $119,000 over the life of the loan.
This article originally published at https://dc.urbanturf.com/articles/blog/330-a-month-the-difference-3-months-makes-in-interest-rates/19890.
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