What's Hot: Four Units Here, 70 Units There: The Georgetown Residential Pipeline | A Mortgage Program for Doctors New To the DC Area
$350 a Month: The Difference a Year Makes in Interest Rates
The average on a 30-year fixed-rate mortgage remained at 3.6 percent today, the lowest level for these rates in almost three years.
"The decline in mortgage rates over the last month is causing a spike in refinancing activity – as homeowners currently have $2 trillion in conventional mortgage loans that are in the money – which will help support consumer balance sheets and increase household cash flow," Freddie Mac's Sam Khater said in a statement. "On top of that, purchase demand is up seven percent from a year ago.”
A year ago, long-term rates were almost 100 basis points higher (4.53 percent), so it feels fitting for UrbanTurf to take its semi-regular look to see how changing 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:
August 2018: The average mortgage rate was 4.53 percent.
Monthly mortgage payment: $3,254
Total outlay on mortgage (monthly payment x 360 months): $1,171,513
May 2019: The average mortgage rate is 3.60 percent.
Monthly mortgage payment: $2,909
Total outlay on mortgage (monthly payment x 360 months): $1,047,503
So, the difference between a rate of 4.53 percent and 3.60 percent is $345 a month or $124,010 over the life of the loan.
See other articles related to: interest rates, freddie mac
This article originally published at http://dc.urbanturf.com/articles/blog/350-a-month-the-difference-a-year-makes-in-interest-rates/15762
Most Popular... This Week • Last 30 Days • Ever

The spring housing market looks to be one of the best on record for the area.... read »

UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »

The Q1 2021 crane count shows DC in the lead.... read »

A zoning hearing is scheduled for later this month.... read »

UrbanTurf looks at one of our favorite metrics regarding competition in the housing m... read »
- A Market on Steroids: The DC-Area Housing Market Went Into Overdrive in March
- A Virtual Tour of More Than 35 DC-Area Developments
- DC Has the Most Cranes in the Sky of Any U.S. City
- A More Vivid Look at 557-Unit Development Proposed Near Dave Thomas Circle
- The 7 DC Neighborhoods Where You Aren't The Only Person Bidding on a Home
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