How much difference would a 1.38% higher interest rate make, on a 150K, 30-year fixed mortgage?

Question

I want to know the difference between a 5.51% and a 6.89%.

Answer 1

150k @ 5.51% = $852.62 /mo
150k @ 6.89% = $986.90 /mo

Difference = $ 134.28 /mo

Be sure you're looking at note rates not APR's. The APR rate can't be used to calculate your monthly payment. I suspect you're looking at APR's since note rates are usually in 1/8% increments.

Answer 2

Assuming loan amount of $150,000 (no down payment) is paid on time, as scheduled, with no additional payments or fees, the difference in total interest paid over the life of the loan is $48,338.01.

Using Amortization Charts for both interest rates the total interest paid for 5.51% and 6.89% are $156,944.95 and $205,282.96, respectively. By subtracting one from the other, you get a total monetary difference of $48,338.01. This number, however, is only valid, if the interest rate is the ONLY variable and all others are constant.

Answer 3

This depends on the initial interest rate. The higher the interest rate, the more impact a 1.38% change would have. This is because more interest is charged each period, meaning you have o pay more principal in order to pay off the loan in the same amount of time. For example, going from a 5% rate to a 6.38% rate increases your monthly payment by $131.06, but going from a 6% rate to a 7.38% rate increases your monthly payment by $137.20.

Answer 4

That would depend on what the rate was increasing from... an example: The difference in 6.00% and 7.38% is $137.19 per month. The difference in 8.00% and 9.38% is $147.52 per month. If you want to give me the exact numbers I can calculate it for you.

Answer 5

In simple terms, 1.38% of 150K for ONE YEAR is 2,070 dollars. Divide that by 12 and you have 172.5 dollars per month.

Answer 6

it depends on what your are trying to do are you look to buy a home or refinance. but either way it would make a difference. send me an email with more info to [e-mail] if your in pa