Understanding The Monthly Cost Of A $350,000 Mortgage At Current Rates
Exploring Monthly Payments For A $350,000 Mortgage
How much would a $350,000 mortgage cost per month? Several factors play a crucial role in determining your mortgage expenses, with the interest rate and down payment being the leading influences. Assuming a 20% down payment of $70,000 eliminates the need for private mortgage insurance (PMI). Below is a breakdown of expected monthly payments for a $350,000 home loan at today's rates:
- 30-year mortgage at 6.43%: $1,756.92 per month
- 15-year mortgage at 5.83%: $2,337.16 per month
Although the 15-year mortgage entails a higher monthly payment, it allows you to pay off the loan sooner and potentially reduces your total interest paid.
Potential Savings If Rates Drop
Considering forecasts where the Federal Reserve may implement two rate cuts of 25 basis points each, here’s what a $350,000 mortgage might look like:
- 30-year mortgage at 6.18%: $1,711.28 per month
- 15-year mortgage at 5.58%: $2,299.74 per month
Should rates drop further to 5.93% and 5.33%, the costs become even more favorable:
- 30-year mortgage at 5.93%: $1,666.16 per month
- 15-year mortgage at 5.33%: $2,262.65 per month
These adjustments indicate that awaiting lower rates could yield monthly savings of roughly $91 for a 30-year mortgage or $72 for a 15-year mortgage compared to current rates. Therefore, timing your mortgage locking decision wisely could enhance your financial plan.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.