On Wednesday, September 18th, the Federal Reserve is expected to make a significant decision regarding interest rates. If they cut rates, the cost of a $400,000 mortgage could drop substantially.

Current Mortgage Landscape as of today;

• 30-year fixed rate: 6.41% = $2,003.71/month

• 15-year fixed rate: 5.78% = $2,662.46/month

These amounts reflect only principal and interest; actual costs will be higher with taxes, insurance, and PMI if the down payment is less than 20%.

Mortgages in 2022

• 30-year mortgage at 8% = $2,935.99

• 15-year mortgage at 8% = $3,819.07

What Happens If Rates Are Cut?

Scenario 1: 0.25% Fed Rate Cut

• 30-year mortgage at 6.16%: $1,951.60/month

Savings: $52 per month

• 15-year mortgage at 5.53%: $2,619.76/month

Savings: $43 per month

Scenario 2: 0.50% Fed Rate Cut

• 30-year mortgage at 5.91%: $1,900.08/month

Savings: $104 per month

• 15-year mortgage at 5.28%: $2,577.46/month

Savings: $85 per month

Over the life of the loan, these small monthly savings add up to tens of thousands of dollars. For example, saving $104 monthly on a 30-year mortgage equals over $37,000 in total savings!

Now is the perfect time to explore your options. Contact me today to see how these potential changes could benefit you.

Read the article: https://www.cbsnews.com/news/how-much-a-400000-mortgage-will-cost-after-the-fed-cuts-rates/

Are you ready to take the next step?