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How much would a $300,000 mortgage cost monthly?
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Homebuying can be a stressful and complex process. But in the end, most buyers want to be rewarded with a home they care about for a price they can easily afford. To accomplish that goal, however, buyers will need to consider multiple factors, with their budget being the most important. This, too, can be particularly complex, especially now as the interest rate climate evolves and speculation over multiple interest rate cuts intensifies. Against this backdrop, it’s critically important that buyers understand what their payments will be, both if they act now and if they wait to buy later in 2024 or 2025.
With the average home price around $427,000 right now, many homebuyers throughout the United States may be wondering what a mortgage on the low end of that spectrum costs. Below, we’ll calculate exactly what a $300,000 mortgage will cost buyers who act now, as well as it would that payment could look like once rate cuts reverberate through the market.
Start by seeing how low of a mortgage interest rate you could secure here.
How much would a $300,000 mortgage cost monthly?
Mortgage interest rates, while still more than double what they were at the height of the pandemic, have been slowly declining as inflation has cooled and talk of rate cuts has grown. That’s left them more than a full percentage point lower than they were toward the end of 2023, for example. Here’s what a $300,000 monthly mortgage payment would be at today’s rates, accounting for the conventional 20% down payment ($60,000) and excluding homeowners insurance and taxes:
- 15-year mortgage at 5.86%: $2,007.15 per month
- 30-year mortgage at 6.44%: $1,507.51 per month
But while a 25 basis point reduction to the federal funds rate may not mirror exactly what homebuyers can get from lenders, it’s still important to know how much payments at the lower rate would be to determine if it’s worth waiting. Here’s how they could drop if rates fall by 25 basis points:
- 15-year mortgage at 5.61%: $1,975.04 per month
- 30-year mortgage at 6.19%: $1,468.37 per month
And here’s what mortgage payments would be on a $300,000 mortgage if rates drop a half a percentage point, either later this month or cumulatively in the months ahead:
- 15-year mortgage at 5.36%: $1,943.22 per month
- 30-year mortgage at 5.94%: $1,429.68 per month
So you could potentially save more than $50 each month if you wait for mortgage interest rates to drop. But waiting could provide another set of complications, including increased competition for limited housing inventory and rising prices as sellers take advantage of a rejuvenated market. It’s critical, then, to weigh these scenarios as accurately as possible to determine if waiting for a mortgage rate cut actually makes sense for you.
Learn more about your current mortgage rate options here.
What about 15-year mortgages?
15-year mortgage payments, no matter the mortgage origination amount, will always be more expensive than 30-year terms thanks to the condensed time frame. But if you’re looking for the lowest mortgage interest rate possible, as the above examples show, 15-year mortgages are more than half a percentage point lower than their 30-year loan counterparts now. And you’ll save significant sums of interest over the life of the mortgage thanks to that abbreviated payoff. Plus, if you pay for mortgage points on a 15-year option, you may be able to secure an even lower rate than what’s advertised for qualified borrowers. Yes, 15-year mortgages aren’t for everyone, but in today’s rapidly changing economic climate, they’re at least worth investigating.
The bottom line
A $300,000 mortgage loan comes with affordable monthly payments now and the inherent possibility of lower payments soon if buyers prefer to act then instead. But waiting could bring its own complications, including additional competition and possibly higher home prices. So buyers will need to add all of these factors into their final decision – along with exploring the pros and cons of 15-year mortgages, as well – in order to best determine their best strategy.
Have more questions? See what mortgage rates and terms you qualify for online now.
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U.S. Air Force gives update on new B-21 stealth bomber: “Nobody on the planet can do what we’re doing”
Air Force leaders gave an update on the B-21 Raider, a futuristic aircraft that is expected to become the United States’ next nuclear stealth bomber.
The aircraft can deliver both “conventional and nuclear munitions,” according to a news release from the Air Force, but will be “critical to deterring conflict” around the world. Gen. Thomas Bussiere, commander of the Air Force Global Strike Command, said the stealth bomber will help the United States keep pace with threats worldwide.
“We are the free world’s only bomber force. … Nobody on the planet can do what we’re doing right now,” Bussiere said, adding that there will likely be an increased demand for the support the stealth bomber can provide in the coming years.
Air Force Global Strike Command
Currently, the stealth bomber remains in the test flight stage, and is doing two such flights a week, according to Thomas Jones, the Northrop Grumman Aeronautics Systems sector president. A photo shared by the Air Force shows one of the bombers during flight testing.
“We’re really starting to strike up quite a cadence … when we started this journey, we made a vow that we were going to design this system to be a daily flyer,” Jones said, according to the release. “It’s been a phenomenal year of progress, and we hope to continue that through the next year.”
A recent notable test confirmed the stealth bomber’s structural design and integrity, according to officials. The plane is now going through a fatigue testing campaign.
Once the planes are tested, some of the aircraft will be delivered to the Ellsworth Air Force Base in South Dakota to help train Air Force squadrons on the stealth bomber. When the B-21 enters the service, this site will be the main operating base for the stealth bomber.
Whiteman Air Force Base in Missouri will be a secondary base, and Dyess Air Force Base in Texas a third.
The stealth bomber is set to replace the B-1 Lancer and B-2 Spirit bombers in the Air Force’s fleet.
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Whether you’re barreling down a mountainside or taking a leisurely ride along your local trail, a great mountain bike is key. But what exactly does a great mountain bike look like, in terms of features? It depends on the kind of terrain and riding style you do.
The best mountain bike for long, cross-country rides will have very different specs than a downhill bike. Some offer full suspension for a smooth ride on bumpy trails. Some have wider tires that are better at gripping wet or sandy terrain. Some are designed for maximum pedaling efficiency and serious stopping power so you can climb steep mountainsides without wearing yourself out. No matter where you and your new bike are headed this fall, we’ve rounded up the best mountain bikes for every rider and every terrain in 2024. Don’t forget to strap on your bike helmet.
Best mountain bike for beginners: Giant Talon 29 1
Mike’s Bikes
The Giant Talon 29 1 is a solid entry-level mountain bike at a reasonable price point. With its balanced frame geometry and high-traction tires, it’s great for a comfortable, stable ride on most trails. While that means it’s not specialized for uphill climbs or cross-country speed, the balanced design is great for beginners or casual riders who aren’t planning to tackle those more challenging technical trails just yet.
With 80mm to 100mm of suspension travel, this hardtail mountain bike strikes that perfect balance of pedaling efficiency and shock absorption.
Riders can also adjust the suspension within that range by adjusting the air spring and the rebound damping. That gives you improved steering precision and a better ride feel since you can tailor it to your needs. If you’re a beginner, it may take some trial and error to fine-tune those settings, but playing around with them is a great way to learn how suspension impacts your ride.
Get this reliable entry-level mountain bike at Mike’s Bikes for $950.
Top features of the Giant Talon 29 1:
- Grippy tires offer great traction in any trail conditions.
- The balanced frame geometry makes this a comfortable bike for most riders.
- The adjustable suspension fork allows you to fine-tune this mountain bike for your needs.
Best trail bike: Santa Cruz Tallboy C R
Backcountry
A full-suspension mountain bike with 120mm and 130mm suspension travel on the rear and front, respectively, it doesn’t get cushier than the Santa Cruz Tallboy C R (at least, not at this price point). Built for cross-country or trail riding, this bike’s design allows you to glide through rocky terrain almost as if you were just cruising on a paved road. That suspension also helps cushion the impact on pops and short drops so you can build up speed while navigating the trail with confidence.
With that said, it can be a little sluggish on uphill climbs. But if you typically stick to more straightforward trails, you won’t have to deal with that issue. For those just-for-fun weekend trail rides, this is the mountain bike you want.
Get this comfortable, agile trail bike at Backcountry while it’s on sale for $3,849 (reduced from $4,799).
Top features of the Santa Cruz Tallboy C R:
- Boasting full suspension, this mountain bike is a comfy ride no matter how bumpy the terrain.
- The carbon C frame is both lightweight and stiff for better control and improved agility.
- The four-piston brakes offer excellent stopping power.
Best fat tire mountain bike: State 6061 Trail+
State Bicycle Co.
For wet or sandy trails, traction is everything, which means you need a fat tire bike like the State 6061 Trail+. With 4.5-inch wide tires that can handle running even at low PSI, this mountain bike can grip the trail no matter how loose or slippery.
Whether you want to cruise along sandy beaches or power through snowy mountain trails, the stability of this fat tire bike is the key to doing so safely and confidently. You won’t be building up much speed, but you’ll have a lot of fun plowing through trails that a standard trail bike couldn’t even touch.
Get this fat tire bike directly from State Bicycle Co. for $1,000.
Top features of the State 6061 Trail+:
- Thick 4.5-inch tires provide extra grip for wet or loose terrain like snow, sand and mud.
- With low PSI capabilities, you can lower the tire pressure to widen the surface area even further to maximize your grip on soft, slippery trails.
- The alloy frame is stiff and strong without adding any more bulk than necessary.
Best mountain bike under $500: Huffy Stone Mountain
Amazon
The Huffy Stone Mountain is a hardtail mountain bike that is lightweight and offers good traction for navigating trails. The budget-friendly bike is missing a lot of the features you’ll find on the more advanced mountain bikes listed above. However, if you’re just starting out and just want to get out on a trail to see if you like mountain biking, this is a good bike to start with.
While you can’t take it on any serious trails, it’s got the basics you need for easy local bike trails. Use it to get a feel for the sport and then upgrade to a mountain bike better suited to the kind of trails you want to tackle. Then, pass this Huffy Stone Mountain on to a friend or teen who’s curious about mountain biking.
A bestseller on Amazon, this budget mountain bike is available for as low as $200.
Top features of the Huffy Stone Mountain:
- This budget entry-level bike is great for casual rides on easy bike trails.
- A wide variety of frame and wheel sizes allows you to get the right fit for your height.
- The lightweight, high-traction design is just enough to let you get a feel for mountain biking before committing to a higher-priced mountain bike with more advanced features and customizability.
Shop more top-rated mountain bikes:
What type of mountain bike should a beginner get?
The best mountain bike for a beginner is a balanced, versatile one. Since you’re probably not tackling steep inclines and declines yet, opt for a trail bike that offers great traction, strong brakes and easy maneuverability along bumpy, muddy trails. That means grippy tires and responsive steering so you can confidently control your bike over tree roots, up hills and on descents.
If the trails you’re eager to go on are largely uphill, look for a bike that’s lightweight with a firmer pedaling platform. Those two features will improve climb efficiency so you’re not wearing yourself out on those uphill stretches.
Do I need a full-suspension mountain bike?
You don’t need a full-suspension mountain bike, but they are nice to have. Unlike hardtail mountain bikes, which only have suspension in the front, full-suspension mountain bikes have suspension in both the front and rear. That extra suspension helps absorb shock, cushioning the impact as you hop over bumps or navigate downhill jumps and drops.
That cushier feel can be nice even on milder trail rides, but they tend to be significantly more expensive and require more maintenance than a hardtail mountain bike. So it might not be worth the extra expense and care if you don’t usually do technical trails or downhill riding.
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