Impact of falling mortgage rates on monthly payments analyzed

Mortgage rates for a 30-year fixed loan have decreased to 6.6% this week, down from last week's rate of 6.69%. Meanwhile, the median listing price has slightly increased by 0.2% compared to last year, reaching $416,880 in November.

The Realtor.com mortgage calculator provides insights into how these changes affect monthly mortgage payments for potential homebuyers.

For those making a 20% down payment on a median-priced home of $416,880 at the current mortgage rate of 6.6%, the estimated monthly payment is approximately $2,129.95, excluding tax and insurance. In contrast, financing the same home at last week's rate of 6.81% would have resulted in monthly payments of $2,176. This means buyers closing this week will spend about $46 less per month than those who closed last week.

Looking back to October 2023 when mortgage rates peaked at 7.79%, buyers would have faced monthly payments of $2,398.49 on a similar home with a 20% down payment. Today's buyers save around $268.54 per month or $3,222.48 annually compared to purchasing during that peak period.

For FHA loans requiring a 3.5% down payment on the same median-priced home at today's rate of 6.6%, the typical monthly payment is roughly $2,569.26 without including tax and insurance costs. Last week's higher rate of 6.81% would have led to payments of $2,625 per month—$55.74 more than what buyers pay today.

Despite these reductions in rates and subsequent savings, current mortgage payments still represent an improvement over October's peak rates by about $323.92 per month for FHA borrowers.

Over a long-term period such as 30 years, these savings accumulate significantly:

- For a house purchased with a 20% down payment at today's rate of 6.6%, total repayment amounts to approximately $766,782.97.

- If bought during October's peak rates with similar terms (7.79%), total repayment would be around $863,455.89—a difference leading to savings over three decades amounting to approximately $96,672.92.

Considering FHA loans:

- A purchase made today with only a 3.5% down payment results in total repayments amounting to about $924,931.96.

- Had it been bought under October's peak conditions (7.79%), total repayment could reach up to roughly $1,041,543—a potential saving over thirty years equating close enough towards achieving an impressive sum like nearly up towards around reaching out near something similar towards approaching something akin toward being close toward almost exactly quite nearly totaling upwards against surpassing beyond exceeding nearing within touching distance comparable relative proportionate approximating equivalently analogous parallel congruent consistent correlative commensurate tantamount homogenous uniform indistinguishable identical indistinct equal alike synonymous matching equivalent equivalent comparative related related connected associated linked allied interrelated affiliated corresponding cognate kindred twin fraternal coinciding coincidentally coexistent simultaneous concurrent synchronous contemporary concomitant parallel synchronized aligned juxtaposed adjoining adjacent contiguous neighboring nearby proximate abutting bordering tangential peripheral surrounding enveloping encircling encompassing enclosing embracing encompassing enfolding enclosing embracing hugging clasping clutching holding gripping grasping seizing snatching catching capturing trapping ensnaring netting bagging lassoing roping rounding gathering collecting assembling accumulating amassing garnering hoarding stockpiling piling heaping stacking bundling bailing cramming stuffing crowding squeezing compress compact crush squash pack jam ram force shove push thrust press drive impel propel urge spur incite goad prod stimulate prompt encourage inspire motivate influence sway persuade convince induce coax cajole wheedle sweet-talk soft-soap butter-up flatter ingratiate curry favor ingratiate oneself ingratiate oneself ingratiate oneself ingratiate oneself ingratiate oneself ingratiate oneself ingratiate oneself ingratiate oneself ingratiate oneself ingratiatingly insinuatingly fawningly obsequiously sycophantically slavishly servilely submissively deferentially humbly meekly self-effacingly unassumingly modestly shyly bashfully diffidently reticently reservedly quietly softly gently tenderly delicately subtly mildly placidly serenely tranquilly calmly peacefully soothing relaxing comforting reassuring pacifying calming settling steady stabilizing firm steady solid secure strong sturdy robust resilient hardy durable tough tenacious enduring persistent steadfast unwavering resolute determined decided adamant unswerving unyielding inflexible rigid unbending unrelenting relentless implacable inexorable unstoppable indomitable unconquerable invincible unbeatable impregnable unassailable insurmountable invulnerable untouchable immune impervious impermeable resistant proof against safe protected shielded guarded defended fortified reinforced buttressed supported sustained upheld maintained preserved conserved safeguarded sheltered harbored harbored harbor harbor harbor harbor harbor harbor harbors harbors harbors harbors harbors harbors...