How much does the mortgage rate change my payment?

What a rate change means for your payment

Small moves in mortgage rates change monthly payments more than many buyers expect. This tool shows your principal-and-interest payment at your rate and at rates up to one point higher and lower, plus how today’s national average compares with the last two years.

An example

On a $450,000 30-year loan at 6.5%, the payment is about $2,844 a month. At 6.75% it’s about $2,919, $75 more a month and roughly $26,800 more over 30 years. At 7.5% it’s about $3,146; at 5.5% it’s about $2,555.

Why it matters

• Budgeting: if you’re shopping near the top of your range, check that a quarter-point rise before you lock wouldn’t push the payment out of reach.
• Points: the table shows what lowering your rate is worth each month, which helps you judge whether paying points makes sense.
• Refinancing later: it shows how much a future rate drop could save, though you’d also pay closing costs to refinance.

Where rates are now

The weekly national average comes from Freddie Mac’s survey of lenders. The tool shows the two-year range and how many weeks had a lower average, so you can see whether today’s rate is near the low or high end of recent history. It doesn’t predict where rates are going.

Locking your rate

Once you have an accepted offer, your lender can lock your rate for a set period, often 30 to 60 days. Ask what a lock costs, how long it lasts and what happens if closing is delayed.

Rates and your price range

Rate changes affect how much you can borrow as well as your payment. With the same monthly budget, a one-point rise in rates lowers the loan you can afford by roughly 10% to 12%. Run the affordability calculator at a slightly higher rate to see how much cushion you have.

Questions buyers ask