Interest Rates: The Difference a Month Makes

by Shilpi Paul

Interest Rates: The Difference a Month Makes: Figure 1

As we reported last Friday, long-term interest rates are on the rise, and may be hitting an average of 4 percent in the very near future.

While still historically low, rates have risen notably in just the last month, and so the difference in monthly mortgage payments if you bought a month ago versus today are notable. UrbanTurf wanted to take a look at just how much the rate increase impacts homeowners’ bottom lines.

Using this four-bedroom rowhouse in Mount Pleasant priced at $795,000, we took a look at the difference in monthly payments, based on varying interest rates over the last 30 days.

Let’s assume that in each case, the homeowner puts down 20 percent and takes out a loan for the remaining $636,000.

Here are the three interest rate scenarios.

May 2nd: The average mortgage rate was 3.35 percent.

Monthly Mortgage Payment: $2,802.94
Total Outlay on Mortgage (Payment x 360 months): $1,009,058.40

May 23rd: The average mortgage rate is 3.59 percent.

Monthly Mortgage Payment: $2,887.97
Total Outlay (Payment x 360 months): $1,039,669.20

June 6th: The projected average mortgage rate is 3.9 percent.

Monthly Mortgage Payment: $2,999.81
Total Outlay (Payment x 360 months): $1,079,931.60

So, the difference between a rate of 3.35 percent and 3.9 percent is about $197 a month or $70,873 over the life of the loan.

Similar Posts:

See other articles related to: mortgage rates, interest rates, dclofts

This article originally published at https://dc.urbanturf.com/articles/blog/the_difference_a_month_makes/7153


  1. RC said at 2:51 pm on Wednesday June 5, 2013:
    I'm not sure that we're going to see 3.35 any time soon (if ever again)... but we are still range bound on interest rates and we're at the top of the range. As long as the Fed keeps buying bonds (which is going to continue well into next year if not longer, even if at a slightly slower pace than before) it's going to be extremely difficult for rates to jump much higher than where they are now. The market reaction is overdone.
  1. Robert said at 3:10 pm on Wednesday June 5, 2013:
    I recognize that if you bought your first home in the past year, rates going back above 4 percent may seem like a bit of a jolt, but keep in mind just how low these rates are from a historical perspective. June 2009: 5.6% June 1994: 8.38% Early 1980s: 16.04%
  1. jen said at 3:38 pm on Wednesday June 5, 2013:
    Well said Robert. People are freaking out about the increase. While it does make a difference, it's still not that bad. When I bought in 2007, our interest rate was 6.5%. Interest rates fluctuate. It's the nature of the beast.
  1. Jim said at 12:17 am on Thursday June 6, 2013:
    All true; but these rates are for excellent credit on a 20% down loan. Let's say you have "decent" credit and only putting down 5-10% on a condo. Your rate today is 4.5-4.625%

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!

Northern Virginia

Profiles of 14 neighborhoods across Northern Virginia

Looking to Give People A Reason to Stay Past 6pm
Happily Straddling the Line Between City and Suburb
Columbia Pike
Arlington’s Neglected Stepchild is Getting a Makeover
Crystal City
Turning Lemons into Lemonade
Lyon Village
Developing An Air of Exclusivity?
Hitting Its Growth Spurt
An Urban Village Hitting Its Stride
Del Ray
Virginia’s Small Town Near the Big City
Eisenhower Avenue
The Vibrancy Might Take a Few Years
The Quiet Neighborhood By the Beltway
Old Town
Mayberry By The Potomac
132 Commerical-Free Acres
Downtown Falls Church
Staying the Same in the Midst of Change
Tysons Corner
Radical Change Could Be On The Way

See more Northern Virginia »


Profiles of 14 neighborhoods in suburban Maryland

Small-Town Living in the State Capital
Bedroom Community Gets Buzzing Cache
Cabin John
In With The New While Maintaining the Old
Chevy Chase
Affluence, Green Lawns and Pricey Homes
Downtown Silver Spring
Experiencing a Resurgence After a Bumpy History
A Suburb on Steroids
Rockville Town Square
Despite the Dynamism, Still Somewhat Generic
Takoma Park
More Than a Little Bit Quirky
A Foodie Magnet on the Verge of Change
Capitol Heights
Kudzu, Front Porches and Crime
Glass Half Full or Half Empty?
Mount Rainier
Artists, Affordable Homes and A Silo Full of Corn
National Harbor
A Development Rises Next to the Potomac
Riverdale Park
A Town Looking For Its Identity

See more Maryland »

Northwest DC

30+ neighborhood profiles for the city's biggest quadrant

16th Street Heights
DC's Sleeper Neighborhood
Where (Almost) Everyone Knows Your Name
AU Park
One of DC’s Last Frontiers Before the Suburbs
DC’s Northern Neighborhood on the Cusp
DC’s 535 House Neighborhood
Cathedral Heights
Do You Know Where That Is?
Chevy Chase DC
Not to Be Confused With the Other Chevy Chase
Cleveland Park
Coming Back After A Rough Year
Columbia Heights
DC’s Most Diverse Neighborhood, But For How Long?
An Island of Serenity East of the Park
Dupont Circle
The Best of DC (For a Price)
Foggy Bottom & West End
Where the Institutional Meets the International
Forest Hills
Ambassadors and Adventurous Architecture
Foxhall Village
350 Homes Just West of Georgetown
Friendship Heights
A Shopping Mecca With a Few Places to Live
History, Hoyas and H&M
Glover Park
One of DC’s Preppier and More Family-Friendly Neighborhoods
A Posh View From Embassy Row
LeDroit Park
A Quiet Enclave in the Middle of the City
Logan Circle
Trendy Now, But Not By Accident
Mount Pleasant
Sought-After Homes Surround Main Street in Transition
Mount Vernon Triangle
From Seedy to Sought-After
The Long, Skinny Neighborhood at the City’s Northwest Edge
Park View
It’s Not Petworth
Penn Quarter/Chinatown
DC’s Go-Go-Go Neighborhood
Getting a Vibrancy of Its Own
The Duke’s Former Stomping Ground
Shepherd Park
DC’s Garden of Diversity
Spring Valley
A Suburb With a DC Zip Code
Not To Be Confused With Takoma Park
Not Quite Like Its Neighbors
U Street Corridor
The Difference a Decade Makes
Woodley Park
Deceptively Residential
Adams Morgan
No Longer DC’s Hippest Neighborhood, But Still Loved by Residents

See more Northwest DC »

Southwest DC

The little quadrant that could

Southwest Waterfront
A Neighborhood Where A Change Is Gonna Come

See more Southwest DC »

Northeast DC

Profiles of 10 neighborhoods in NE

New Development Could Shake Up Pastoral Peace
A Little Bit of Country Just Inside the District’s Borders
Not to Be Confused With Bloomingdale
Fort Totten
Five Years Could Make a Big Difference
H Street
A Place To Party, and To Settle Down
The Northeast Neighborhood That Few Know About
Michigan Park
A Newsletter-On-Your-Doorstep Community
Evolving from a Brand to a Neighborhood
Ripe for Investment Right About Now
The Difference 5 Years Makes
Big Houses, A Dusty Commercial Strip and Potential

See more Northeast DC »

Southeast DC

6 neighborhoods from Capitol Hill to East of the River

Capitol Riverfront
Still Growing
Hill East
Capitol Hill’s Lesser Known Neighbor
Congress Heights
Gradually Rising
Notable for Its Neighborliness
Historic Anacostia
Future Promise Breeds Cautious Optimism
Eastern Market
A More European Way of Living

See more Southeast DC »