On a $400,000 30-year loan, each quarter-point move in the rate changes the monthly payment by roughly $66.12 and the lifetime interest by about $23,803. The effect adds up quickly across a full percentage point.
Payment and interest by rate
| Rate | Monthly P&I | vs 6.50% | Lifetime interest |
|---|---|---|---|
| 5.50% | $2,271.16 | -$257.12 | $417,616 |
| 5.75% | $2,334.29 | -$193.98 | $440,345 |
| 6.00% | $2,398.20 | -$130.07 | $463,353 |
| 6.25% | $2,462.87 | -$65.40 | $486,633 |
| 6.50% | $2,528.27 | +$0.00 | $510,178 |
| 6.75% | $2,594.39 | +$66.12 | $533,981 |
| 7.00% | $2,661.21 | +$132.94 | $558,036 |
| 7.25% | $2,728.71 | +$200.43 | $582,334 |
| 7.50% | $2,796.86 | +$268.59 | $606,869 |
A full point (6.50% to 7.50%) adds $268.59 a month and $96,691 of interest.
Why it is worth shopping
If three lenders quote 6.50%, 6.75% and 7.00% on the same day, the spread is $132.94 a month between the best and worst. That is $1,595 a year for the same house.
What we assumed
- 30-year fixed, principal and interest only, $400,000 loan.
Related calculators: Mortgage Calculator, Home Affordability Calculator.
Questions people ask
Why do rates move so much from lender to lender?
Lenders price based on their costs, the product and borrower risk. Fees and points also differ, so compare the APR and the full loan estimate, not only the headline rate.
Estimates for general education, not financial, tax or legal advice. Real results depend on your lender, employer, tax situation and location. See the disclaimer.