Mortgage Calculator: Here’s How Much You Need To Buy a $399,950 Home at a 6.06% Rate

Mortgage rates for a 30-year fixed loan dipped this week to 6.06%, down from 6.16% last week. This marks the lowest level seen in more than three years, following President Donald Trump’s announcement of a $200 billion mortgage-backed securities (MBS) buyback plan.

So what impact does this have on your monthly mortgage payment? And what does this mean for homebuyers?

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

With a 20% down payment on a $399,950 home, the loan amount comes to $319,960.

At today’s 6.06% mortgage rate, the monthly principal-and-interest payment would be about $1,931.

Just one week ago, when rates averaged 6.16%, the same home would have carried a monthly payment of roughly $1,951—about $20 more per month.

Looking back one year, when mortgage rates averaged 7.04%, the monthly payment on this home would have been approximately $2,137, or $206 more per month than today.

At the peak of the market in October 2023, when 30-year mortgage rates climbed to about 7.79%, a buyer putting 20% down would have faced a monthly payment near $2,301—roughly $370 more per month than today’s buyer.

Monthly mortgage payment today with a 3.5% down payment

For most borrowers, FHA loans require a 3.5% down payment.

For borrowers using an FHA-style down payment of 3.5%, the loan amount on a $399,950 home would be approximately $385,952.

At today’s 6.06% mortgage rate, the monthly principal-and-interest payment would be about $2,329.

At last week’s 6.16% rate, that payment would have risen to roughly $2,354, or about $25 more per month.

One year ago, when rates averaged 7.04%, the same loan would have resulted in a monthly payment of approximately $2,578—about $249 more per month than today.

At the October 2023 peak of 7.79%, a buyer putting 3.5% down would have faced a monthly payment of around $2,776, which is roughly $447 more per month than buyers pay at today’s rate.

Long-term savings over 30 years

The real impact of lower mortgage rates becomes even clearer when looking at total costs over 30 years.

A buyer who purchases a $399,950 home today with 20% down at a 6.06% rate would pay approximately $695,045 in total principal and interest over the life of the loan.

By comparison, a buyer who purchased the same home in October 2023 at a 7.79% rate would have paid about $828,390 over 30 years.

That’s a difference of roughly $133,345 in total borrowing costs.

For buyers putting 3.5% down, the long-term savings are even more pronounced.

At today’s 6.06% rate, total principal and interest paid over 30 years would be about $838,399.

At the October 2023 peak rate of 7.79%, total payments would have climbed to approximately $999,245.

That’s a savings of roughly $160,846 over the life of the loan for buyers purchasing at today’s rates instead of at the peak.