In the big picture, it means that the Fed is printing about $600 billion to stimiluate the economy. That, by definition, is inflationary. Inflation means higher rates. But what does that really mean?
It means about $80/month on a $200,000 loan. It’s been a really quick rise. The Freddie Mac PMMS results from February came in at 4.95% and the November figure was at 4.30%.
Over the course of 10 years, that’s a $12,627 increase in total mortgage cost.
Feel free to update the calculator to fit your loan amount.
Assumptions
These are the values used in this loan comparison. To update any values, go here
| Comparison Term (Years): | 10 |
| Property Value: | $250,000.00 |
| FICO: | 720 |
| Input | Now | November |
|---|---|---|
| Loan Type | Conv | Conv |
| Loan Term (Years): | 30 | 30 |
| Loan Amount: | $200,000.00 | $200,000.00 |
| Interest Rate: | 4.950% | 4.300% |
| UFMIP: | 0.00% | 0.00% |
| MI Factor: | 0.00% | 0.00% |
| Closing Costs ($): | $0.00 | $0.00 |
| Closing Costs (%): | 0.00% | 0.00% |
Monthly Analysis
Based on the information provided, this table shows the monthly payments for principal, interest, and mortgage insurance
(if applicable).
| Loan & Payment Summary | Now | November |
|---|---|---|
| P&I Payment | $1,067.54 | $989.74 |
| Mortgage Insurance | $0.00 | $0.00 |
| Monthly Payment | $1,067.54 | $989.74 |
| Monthly Savings | $0.00 | $77.80 |
| Total Loan Amount: | $200,000.00 | $200,000.00 |
Full Mortgage Analysis
Over the comparison term of 10 years, this table reviews the true cost of the loan over time in a way that monthly payments cannot. We remove the principal portions of payments to isolate the cost of interest, mortgage insurance, and any closing costs to calculate the total cost over time.
| Real Cost Analysis | Now | November |
|---|---|---|
| Total Payments | $128,104.80 | $118,769.15 |
| Principal Payments | $37,561.59 | $40,852.95 |
| Interest & MI Payments | $90,543.00 | $77,916.00 |
| Remaining Balance | $162,438.41 | $159,147.05 |
| Total Cost | $90,543.00 | $77,916.00 |
| Total Savings | $0.00 | $12,627.00 |