Mortgage Rates Decline: What a $700,000 Loan Costs Today
Mortgage Rates Decline: What a $700,000 Loan Costs Today
Homebuyers and homeowners are seeing significant relief as mortgage rates continue to fall. After reaching elevated levels earlier in 2025, the average 30-year fixed mortgage rate has now dropped to 6.34%. This substantial decline offers considerable savings for those looking to purchase a home or refinance an existing mortgage.
For a $700,000 mortgage, the current 6.34% rate translates to a monthly principal and interest payment of $4,351.08. This represents a saving of approximately $273 per month compared to the 6.93% average rate seen in January 2025, adding up to nearly $3,278 in annual savings and a staggering $98,344 over the 30-year loan term.
Those opting for a shorter term can secure a 15-year mortgage at an average rate of 5.64%, with monthly payments around $5,771.72. Existing homeowners with higher rates can also benefit from refinancing. A 15-year refinance at 6.01% would set payments at $5,910.78, while a 30-year refinance at 6.64% would be $4,489.12 per month.
While these lower rates present a compelling opportunity, potential borrowers should also factor in closing costs for refinancing, which typically range from 2% to 5% of the loan amount. Comparing offers from multiple lenders is crucial to secure the most competitive terms, as rates can vary based on credit profile, down payment, and loan specifics.
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