Here's how much a $700,000 mortgage can cost per month, following the December Fed rate cut
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TL;DR
- Mortgage interest rates have declined by about a full percentage point, starting the year over 7% and now around 6.12% for a 30-year term.
- The Federal Reserve's rate cuts, with the third occurring on December 10, have contributed to lower mortgage rates.
- A $700,000 mortgage now costs approximately $4,251.01 per month for a 30-year term at 6.12% interest and $5,719.58 for a 15-year term at 5.50% interest, excluding insurance and taxes.
- These new rates represent savings of around $425 per month for the 30-year option and $290 for the 15-year option compared to January 2025 rates.
- Homebuyers are advised to consider mortgage rate float-down options to lock in current lower rates while retaining the possibility of benefiting from future rate drops.