The typical monthly payment at today's 6.12% mortgage rate on a median-priced $425,000 home is roughly $2,065, assuming a 20% down payment. Buyers locking in the recent rate save $9 per month compared to last week, but significantly save $380 per month compared to the peak rate of 7.79% in October 2023.
For those using FHA loans with a 3.5% down payment, the typical monthly payment at the current 6.12% rate is about $2,491. This represents an $11 increase from last week, but a notable $459 improvement compared to when mortgage rates peaked at 7.79%.
Weekly fluctuations in mortgage rates can lead to minor savings for homebuyers. However, those who waited to buy at peak rates are now experiencing far more significant financial relief over time.
Considering the sustained nature of these fluctuations, those who previously hesitated to buy—and thus incurred higher costs—are now reaping the rewards of better rate conditions, especially when assessed over a 30-year mortgage period.
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