There are 3 main factors that affect the monthly payment of a mortgage payment; interest rates, loan amount, and loan length. Try entering your loan details into the box below. The results will show how different interest rates will affect your monthly payments.
There are a few other home expenses that can affect your monthly payments. Take note of any fees that get added into a mortgage. This might include fees charged by a bank, like points, general fees, or the fees charged for an appraisal. This can vary greatly depending on where you get your mortgage. Your property taxes might also go up after you buy a home. Taxes are often reassessed at a new valuation when a property is sold.
The easiest way to figure out your mortgage payment is to sit down with a local banker. In my experience, credit unions have lower fees. Many larger banks will compete on interest rate but charge higher fees.
In general, mortgage rates are determined by the demand for mortgages in the bond market. This is affected by the federal funds rate set by the Federal Reserve. Although, mortgages tend to track the 10 year treasury yield. The rate that you receive will be a combination of your credit risk and the overall rate environment.