Mortgage Calculator: Here’s How Much You Need To Buy a $399,900 Home at a 5.98% Rate

Mortgage rates continued their downward drift this week, plunging to their lowest level in more than three years in line with the 10-year Treasury yield due to a new wave of uncertainty over President Donald Trump's tariffs.

The average rate on 30-year fixed home loans fell to 5.98% for the week ending Feb. 26, down from 6.01% the week before. For the first time in 3.5 years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last week's milestone.

So what impact does this have on your monthly mortgage payment? And what does this mean for homebuyers trying to time their entry into a volatile market?

Here’s the monthly cost of purchasing a typical home today, according to the Realtor.com® mortgage calculator.

All examples assume a 30-year fixed mortgage and include principal and interest only, excluding property taxes, homeowners insurance, and mortgage insurance.

Monthly mortgage payment today with a 20% down payment

For a homebuyer eyeing a median-priced home of $399,950, these shifting numbers translate into tangible savings.

A buyer putting 20% down—financing a loan of $319,960—will now face a monthly principal and interest payment of approximately $1,915. This reflects a $6 monthly reduction from last week’s payment of $1,921.

The improvement is even more pronounced when compared to the same period in 2025, when rates averaged 6.76%.

At that time, a homebuyer would have paid roughly $2,077 per month, meaning today’s buyers are saving $162 every single month compared to those just one year ago.

Monthly mortgage payment today with a 3.5% down payment

The savings are also significant for those utilizing FHA loans with a 3.5% down payment.

On the same $399,950 home, an FHA borrower would finance roughly $385,952. At today’s 5.98% rate, the monthly principal and interest payment comes to approximately $2,310. This is a $7 decrease from last week’s monthly cost of $2,317.

When viewed against the 6.76% rates of February 2025, where the monthly payment sat up at $2,506, today's FHA borrowers are keeping an extra $196 in their pockets every month.

Looking back at the October 2023 peak of 7.79%, where the payment was $2,772, the monthly savings jump to a substantial $462.

Long-term savings over 30 years

The long-term financial benefits of these lower rates become even clearer when looking at the total cost of the loan over 30 years.

A buyer with a 20% down payment at today’s 5.98% rate will pay a total of $689,355 in principal and interest over the life of the mortgage.

Contrast this with the October 2023 peak, when rates hit 7.79% and the total cost for that same loan amount would have reached $827,401. By securing a mortgage in today's environment instead of that peak, a homebuyer effectively avoids $138,046 in interest charges.

FHA borrowers see a similar trajectory of long-term savings. Financing a home today at 5.98% results in a lifetime payment of $831,472 for principal and interest.

If that same loan had been locked in at the 7.79% peak in late 2023, the total cost would have climbed to $997,980. This represents a total long-term savings of $166,508 for FHA buyers.

While the weekly fluctuations in interest rates may seem small, the move into the 5% range is providing significant relief for both the monthly budget and the 30-year financial outlook of American homeowners.