Mortgage Calculator: Here’s How Much You Need To Buy a $440,000 Home at a 6.67% Rate
Mortgage rates for the week on a 30-year fixed mortgage dropped to 6.67%, down from 6.77% the week before. This is the biggest weekly drop since early March.
So what does this do to your monthly payment? And how does this affect homebuyers?
Monthly mortgage payment today with 20% down payment
The monthly payment on a median-priced $440,000 home at the current 6.67% mortgage rate is approximately $2,264. (That’s assuming a 20% down payment and not including tax and insurance.)
Monthly mortgage payment today with a 20% down payment
The typical monthly payment on a median-priced $440,000 home at today’s 6.67% mortgage rate is roughly $2,264. (That’s assuming a 20% down payment and excluding tax and insurance.)
Last week, a median-priced home at a 6.77% mortgage rate would have cost homebuyers $2,288 per month—$24 more than what buyers would pay today.
Yet, if you examine the peak mortgage rate of 7.79% in October 2023 and then compare those payments with loan installments today, homebuyers are way better off now than they would have been then.
In October 2023, buyers would have paid $2,532 monthly on a $440,000 home with 20% down, which means homebuyers today can save $268 a month—or $3,216 a year—compared with buying when rates peaked.
Mortgage Calculator: Here’s How Much You Need To Buy a $440,000 Home at a 6.67% Rate
Monthly mortgage payment today with a 3.5% down payment
For most borrowers, FHA loans require a 3.5% down payment.
Assuming a 3.5% down payment and excluding tax and insurance, the typical payment at today’s 6.67% mortgage rate on a median-priced $440,000 home is roughly $2,731 per month.
Last week, a median-priced home at a 6.77% mortgage rate would have cost homebuyers $2,760 per month—$29 more than what buyers would pay today.
Nonetheless, mortgage payments at today’s rates on a median-priced home are still a $323-per-month improvement over October 2023, when a median-priced home at a 7.79% mortgage rate would have cost homebuyers $3,054 per month.
Long-term savings over 30 years
When you multiply these monthly savings by 30 years, they add up dramatically.
If you buy a $440,000 house at today’s 6.67% rate with a 20% down payment, you’ll pay a total of $815,176 over the life of a 30-year loan.
If you’d bought that same $440,000 home with 20% down in October 2023, when rates peaked at 7.79%, that loan would end up costing you $911,343.
Total savings over 30 years: $96,167.
Now, let’s turn our attention to FHA loans.
If you put down 3.5% on a $440,000 house financed at 6.67% today, you’ll pay $983,306 over the life of the loan.
If you’d put down 3.5% on a $440,000 home in October 2023, when rates peaked at 7.79%, you’d pay $1,099,307.
Total savings over 30 years: $116,001.
FAQ on Mortgage Calculators, covering how they work, what they show, and key considerations:
1. What is a Mortgage Calculator?
A free online tool that estimates your monthly mortgage payment based on inputs like loan amount, interest rate, loan term, and down payment. Some advanced calculators also factor in taxes, insurance, PMI, and HOA fees.
2. What Inputs Do I Need?
- Home Price: Purchase price of the property.
- Down Payment: Your upfront payment (as % or $).
- Loan Term: Usually 15, 20, or 30 years.
- Interest Rate: Current mortgage rate (estimate if unsure).
- Location: For property tax estimates.
- Homeowners Insurance & HOA Fees (optional).
3. What Does It Calculate?
- Monthly Principal & Interest (P&I): Core loan repayment.
- Property Taxes: Based on local rates (annual estimate ÷ 12).
- Homeowners Insurance: Annual premium ÷ 12.
- PMI (Private Mortgage Insurance): If down payment < 20%.
- Total Monthly Payment: P&I + Taxes + Insurance + PMI + HOA.
4. What’s an Amortization Schedule?
A table showing:
- How each payment splits between principal (loan balance) and interest.
- How the loan balance decreases over time.
- Total interest paid over the loan’s life.
Example: Early payments are mostly interest; later payments shift to principal.
5. Can I Compare Loan Options?
Yes! Adjust these to compare scenarios:
- Loan Term: 15-year vs. 30-year (shorter term = higher monthly payment but less total interest).
- Down Payment: How 10% vs. 20% down affects PMI and payments.
- Interest Rates: See how a 0.5% rate difference impacts your payment.
6. What About Extra Payments?
Many calculators let you add extra monthly/yearly payments. This shows:
- How much sooner you’d pay off the loan.
- Total interest saved.
- *Even $100/month extra can save thousands!*
7. What’s Not Included?
- Closing Costs: Fees not reflected in monthly payments (e.g., appraisal, title insurance).
- Variable Expenses: Future tax/insurance increases.
- Adjustable-Rate Mortgages (ARMs): Complex rate changes may require specialized calculators.
8. How Accurate Are the Results?
- Estimates only! Actual rates/fees depend on your credit, lender, and property.
- Tax/Insurance Estimates: Vary by location and insurer.
- PMI Costs: Differ by lender and credit score.
- Always get official Loan Estimates from lenders.
9. Why Use One?
- Budgeting: See what you can afford before house hunting.
- Refinancing: Check if a new loan saves money.
- Goal Setting: Plan for extra payments or a larger down payment.
10. Where Can I Find a Good Mortgage Calculator?
Trusted options:
- Bankrate
- NerdWallet
- Zillow
- Realtor.com
