Mortgage Rate Impact Calculator
Mortgage rates move constantly, and even small shifts have a big dollar impact over 30 years. This calculator shows the precise monthly payment difference between two rates on any loan size, so you can see what rising or falling rates actually mean for your budget.
Rate A — 6.5%
$2,528
per month
Rate B — 7%
$2,661
per month
The difference
per month
+$133
per year
+$1,595
over 30 years
+$47,858
What a rate difference actually costs
The 0.500% difference between Rate A and Rate B adds up to $47,858 over the life of your 30-year loan. That's real money — roughly the cost of a car. Even a 0.25% rate improvement on a $400,000 loan saves $24,054 total.
What you can actually change
Your rate — Lenders vary more than most people expect. Getting 3+ quotes is one of the highest-return hours you'll spend — typical spread is 0.5–1%.
Down payment — Putting 20% down eliminates PMI (usually $100–300/month) and often gets you a better rate. But a larger down payment also ties up cash.
Loan term — A 15-year mortgage has a lower rate and far less total interest, but higher monthly payments. 30-year gives you flexibility if your income changes.
Your next step
Get at least 3 rate quotes before committing to a lender.
When you compare, use the APR — not just the rate — because APR includes lender fees and gives you a true apples-to-apples comparison. A lower rate with higher fees can cost more over time.
Estimates principal and interest only. Does not include property taxes, insurance, or PMI.
Ready to take action?
Figure out your housing situation
Know what you can actually afford before signing anything.