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How much will a $700,000 mortgage cost monthly after rates are cut?
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If the state of inflation dictates where interest rates lie, borrowers got some welcome news on Thursday when the Bureau of Labor Statistics announced yet another drop in the inflation rate for August. Now at 2.5%, the rate is just half a percentage point above where the Federal Reserve wants it to be, meaning that a cut to the federal funds rate will almost assuredly be issued when the Fed meets again later this month. A reduction there, then, could lead to lower rates on borrowing products like personal loans, credit cards and mortgages.
Homebuyers contending with the highest mortgage rates in decades are now positioned to finally see some relief. And it could come with multiple reductions to the federal funds rate, both in September and in subsequent Fed meetings scheduled for November and December. Against this backdrop, buyers should start calculating their potential monthly mortgage costs if they act now versus what their payments will be once rate cuts are issued. Below, we’ll calculate the exact costs for a $700,000 mortgage under multiple rate scenarios.
See how low of a mortgage interest rate you could lock in here now.
How much will a $700,000 mortgage cost monthly after rates are cut?
To truly understand if it’s worth waiting for rate cuts to be issued, it’s important to first know what a $700,000 mortgage would cost at today’s prevailing rates. Here’s what it would cost per month, assuming the conventional 20% down payment ($140,000) is made, minus any costs tied to homeowners insurance and taxes:
- 15-year mortgage at 5.78%: $4,659.30 per month
- 30-year mortgage at 6.41%: $3,506.50 per month
Mortgage interest rates are unlikely to drop by the same amount that the federal funds rate does. That said, here’s what monthly payments on a $700,000 mortgage loan would be if rates drop by 25 basis points:
- 15-year mortgage at 5.53%: $4,584.59 per month
- 30-year mortgage at 6.16%: $3,415.30 per month
And while the CME FedWatch tool has the 25 basis point cut pegged for the September meeting at an 87% likelihood, that doesn’t mean that another cut in the same amount couldn’t be issued in November. Here’s what monthly mortgage payments on a $700,000 loan would fall to, then, assuming a cumulative half of a percentage point cut from today’s rates:
- 15-year mortgage at 5.28%: $4,510.55 per month
- 30-year mortgage at 5.91%: $3,215.15 per month
So if you wait for interest rate cuts to be issued, you could save more than $290 per month with a 30-year mortgage option and more than $140 per month with a 15-year term. But waiting could also pose its own set of complications with increased buyer competition and possibly higher home prices. So weigh the potential savings carefully against what’s available today.
Start exploring your current mortgage options online here.
The bottom line
Financial relief for homebuyers is on the horizon. Predicted interest rate cuts could save those pursuing a $700,000 mortgage loan significant sums of money both each month and over the life of the loan. But buyers don’t necessarily need to wait to act. Mortgage interest rates have already come down by more than a full percentage point since the end of 2023, so a home purchase may already be affordable today. Start crunching the numbers, then, and start shopping for lenders to better determine if now is the right time to act (or if you’re better served by waiting a few more weeks or months).
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How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
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The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
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How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
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The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.