The Difference a Year Makes in Interest Rates
✉️ Want to forward this article? Click here.
![The Difference a Year Makes in Interest Rates: Figure 1](https://assets.urbanturf.com/dc/images/blog/Mortgage%20Rate%20Chart.jpg)
Long-term mortgage rates have essentially been doing one thing in 2018: going up. Still, if you look back a year, things haven't changed all that much.
One year ago, the average on a 30-year fixed-rate mortgage was 4.19 percent. Last week, Freddie Mac reported 4.22 percent as the average on this type of loan. So, how does that change in rates impact your mortgage payments?
Well, the short answer is not a whole lot, but to get a sense, UrbanTurf took a home with a $600,000 purchase price and assumed a 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:
February 2017: The average mortgage rate was 4.19 percent.
Monthly mortgage payment: $2,344
Total outlay on mortgage (monthly payment x 360 months): $844,013
March 2017: The average mortgage rate is 4.22 percent.
Monthly mortgage payment: $2,353
Total outlay on mortgage (monthly payment x 360 months): $847,040
So, the difference between a rate of 4.19 percent and 4.22 percent at this price point is just about $9 a month, so don't fret about rising rates just yet.
This article originally published at https://dc.urbanturf.com/articles/blog/the-difference-a-year-makes-in-interest-rates/13541.
Most Popular... This Week • Last 30 Days • Ever
![Buying with Friends: What You Should Know](https://assets.urbanturf.com/dc/images/blog/2010/05/home_value.jpg)
Here are some precautions to take before buying real estate with a buddy.... read »
![$10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/VAFX2180246_45_0_image_560x420.jpg)
The six-bedroom home listed for just south of $10 million back in June went under con... read »
![16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/2500-wilson-1_image_560x420.jpg)
The new project will take the place of an obsolete office building in Courthouse.... read »
![Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/1625-mass-1_image_560x420.jpg)
The three office-to-residential conversion projects have been conditionally awarded t... read »
![500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths](https://assets.urbanturf.com/dc/images/blog/2024/09/resized/parcel-6-park_image_560x420.jpg)
The plans for one of the final parcels at DC's St. Elizabeth's East campus are beginn... read »
- Buying with Friends: What You Should Know
- $10 Million McLean Home Of Former Nationals Star Stephen Strasburg Finds a Buyer
- 16-Story, 325-Unit Building Pitched For Arlington's Wilson Boulevard
- Mayor Bowser Announces First Office-To-Residential Projects To Receive Tax Abatements
- 500 Apartments, Live/Work Units And A Park: The New Plans Coming To St. Elizabeths
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. 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