Home | Newsletter | Advertise
loading...

Interest Rates: The Difference a Month Makes

  • June 5th 2013

by Shilpi Paul

✉️ Want to forward this article? Click here.

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: dclofts, interest rates, mortgage rates

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/the_difference_a_month_makes/7153.

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

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse