Rising rates could cost homebuyers more than $100,000 over the life of loans — RISMedia

0

New data collected from LendingTree users puts a dollar figure on how rising rates can affect the cost of a mortgage. Specifically, the company calculated the difference between the average monthly mortgage payments on 30-year fixed-rate loans in each state based on average APRs in January and April 2022. Here are the key findings:

  • 30-year fixed-rate mortgage APRs have risen an average of 1.46 percentage points in the 50 states since January. In January, the average APR across the 50 states was 3.79%. In April, it was 5.25%.
  • Nationally, higher APRs lead to an average increase in mortgage payments of $258.57 per monththis monthly increase equates to an average of $3,102.82 in additional fees each year and an average of $93,084.60 in additional fees over the life of a 30-year loan.
  • Mortgage payments increased the least in Ohio, West Virginia and Kentucky.
  • California, Washington and Massachusetts saw mortgage payments increase the most.

Take-out:

“While mortgage APRs have already risen significantly since the start of the year, they could rise further by 2023, said Jacob Channel, senior economic analyst at LendingTree and author of the report. “This is especially true given that the Federal Reserve is set to raise the fed funds rate several times this year (including what is expected to be a 50 basis point hike announced this week), which will likely put even more upward pressure on mortgage rates. ”

To view the full report and state rankings, Click here.

Share.

Comments are closed.