CBS News
How much will a $1 million mortgage cost per month after rates are cut?
Mortgage interest rates have dropped by more than a full percentage point, on average, from where they were toward the end of 2023. And after this week they could fall further. With the Federal Reserve now poised to issue its first federal funds rate cut since 2020, homebuyers could finally experience some relief when it comes to mortgage interest rates.
While this week’s cut is predicted by many to be just 25 basis points (which may already be priced in by many lenders), the months ahead offer the potential for additional cuts, both when the Fed meets in November and again in December. Further reductions could be issued in 2025, too.
Against this backdrop, prospective homebuyers should start making select preparations now. One of the most important is to calculate the potential costs of a mortgage each month. And with a record amount of homes in the U.S. worth $1 million or more right now, that means many buyers should start calculating their potential monthly mortgage payment. Below, we’ll break down what a $1 million mortgage costs per month now – and what it could cost after rates are cut.
See how low of a mortgage interest rate you could secure here today.
How much will a $1 million mortgage cost per month after rates are cut?
To determine if it’s worth waiting for mortgage rate cuts, it’s helpful to first understand what you’d pay for a $1 million mortgage per month right now. Here’s what those monthly payments would be for qualified borrowers based on average rates for two loan terms (assuming the conventional 20% down payment of $200,000, minus taxes and insurance):
- 15-year mortgage at 5.78%: $6,656.14 per month
- 30-year mortgage at 6.41%: $5,009.29 per month
Mortgage interest rates don’t directly follow the federal funds rate, so a drop by 25 basis points in the former isn’t likely to be exactly replicated for mortgages. Still, rates could fall by that amount over the next few weeks and months.
Here’s what a monthly mortgage payment would look like on a $1 million home assuming the same caveats as above:
- 15-year mortgage at 5.53%: $6,549.41 per month
- 30-year mortgage at 6.16%: $4,879.01 per month
Here’s what payments would be with a half a percentage point reduction:
- 15-year mortgage at 5.28%: $6,443.65 per month
- 30-year mortgage at 5.91%: $4,750.21 per month
And here’s what they could look like at the end of the year or in 2025 if rates come down a full percentage point from today’s averages:
- 15-year mortgage at 4.78%: $6,235.05 per month
- 30-year mortgage at 5.41%: $4,497.24 per month
So homebuyers who wait could potentially save hundreds of dollars per month on their monthly mortgage payments if rates fall half a percentage point. But there’s no exact timeline for when that will happen. And even if it does, it could mean increased homebuyer competition, higher home prices and missing out on your dream home while waiting for cooler rates. So carefully weigh these potential complications against the potential savings to better determine the best path forward.
Compare today’s top rates and lenders here now.
The bottom line
Monthly mortgage payments on a $1 million mortgage will cost qualified borrowers upward of $6,500 or $5,000 right now, depending on the mortgage term, even with the conventional 20% down payment. But with the growing amount of homes in the U.S. priced at this point or higher, this is a reality many buyers are already confronting. The question then revolves around waiting for rates to fall. While potential rate cuts could lead to hundreds of dollars in savings, waiting will pose its own set of complications and issues, including higher home prices that could easily negate any rate savings. So approach the process carefully and start crunching the numbers now to decide if it’s worth waiting or acting.
CBS News
News details emerge about Utah mother, 3 young children killed at their home
A Utah mother who police believe was shot and killed by her husband along with three of their children was a refugee who fled violence in Myanmar and dreamed of thriving with her family in the U.S., relatives said Thursday.
Police believe the husband killed his family before shooting himself, and a teenage son was badly wounded.
The bodies of Bu Meh, 38, along with her daughters Kristina Ree, 8, and Nyay Meh, 2, and son Boe Reh, 11, were found in their home in West Valley City, a Salt Lake City suburb, on Tuesday. A handgun was found under the father Dae Reh, 42, leading police to believe this was a murder-suicide, but no evidence of a motive has been released.
One child, 17-year-old Sha Reh, survived being shot in the head and is hospitalized with a severe brain injury, police said.
Bu Meh, a member of Myanmar’s Karenni ethnic minority, fled what her relatives described as ethnic cleansing in the Southeast Asian nation about 10 years ago. She and her small family lived for a time in a refugee camp in Thailand, then came to the United States “with little more than the clothing on their backs,” the family said in a statement.
She taught herself English, learned new skills and worked hard to support her growing family, achieving a way of life “far beyond the nightmare of her former country or the refugee camp,” the family said.
“For reasons that we cannot comprehend, her husband robbed her and their children of that security and their very lives,” her family said.
Police believe the shooting happened over the weekend.
Police initially went to the home Monday night after a relative asked them to check on the family but did not find any sign of an emergency that would allow them to enter the home. The relative went to the home Tuesday, saw Sha Reh wounded in the garage and called police, who found the bodies inside the home.
In their statement, relatives called Sha Reh their hero and said he faces a “long and complex road to recovery.” An online fundraiser is collecting donations to pay for his care and to help him go to college.
“After moving into their own home and finally enjoying a level of prosperity far beyond the nightmare of their former country or the refugee camp in Thailand in which they lived for a season, and for reasons that we cannot comprehend,” the family wrote, “her husband robbed her and their children of that security and their very lives.”
Neighbors hadn’t reported any gunshots in the area over the weekend, police spokesperson Roxeanne Vainuku said at a news conference Wednesday. The family had no previous reports of domestic violence or other disturbances.
One neighbor spoke to CBS affiliate KUTV about the shock they felt.
“How can a father shoot his children?” neighbor Mike Webster told the station. “I just can’t grasp for that concept at all. I can just see that poor little two-year-old looking at her daddy.”
This Utah case is the 38th mass killing in the United States this year. At least 165 people have died this year in U.S. mass killings, which are defined by the FBI as cases in which four or more people die within a 24-hour period, not including the killer.
Mark Barden, whose child was killed in the 2012 Sandy Hook school shooting, urged Utah lawmakers to pass Red Flag laws after the incident in Utah, KUTV reported.
“When it is recognized that an individual is in crisis, measures to safely and temporarily remove firearms from their possession are proven to save lives,” Barden said.
CBS News
Two journalists killed in northern Syria
A journalists’ association says two journalists working for Kurdish media outlets were killed in northern Syria while covering fighting between Turkish-backed fighters and Syrian Kurdish militia.
The Turkey-based Dicle-Firat Journalists Association said Friday that Nazim Dastan and Cihan Bilgin were killed Thursday when their vehicle was reportedly targeted by a Turkish drone on a road near the Tishrin Dam.
Tishrin Dam, located some 56 miles east of Aleppo, has been the scene of clashes between the U.S.-backed Syrian Democratic Forces, SDF, and the Turkey-backed opposition forces.
There was no immediate comment from Turkish officials.
Bianet, a news website dedicated to human rights issues, said Bilgin was a reporter for the Kurdish Hawar News Agency, while Dastan worked as a freelance journalist for the Firat News Agency, which is associated with the militant group, the Kurdistan Workers’ Party (PKK).
Turkey considers the SDF a terrorist organization because its main component is a group aligned to the PKK.
The group has been engaged in an armed struggle against the Turkish state since the 1980s in pursuit of its objective of securing autonomy for Kurds in the country.
CBS News
Stuffing stockings with skincare? Here’s what experts say kids should (and shouldn’t) be using.
Skin care is all the rage for teens and tweens these days. But if you’re hunting for last-minute skincare stocking stuffers, be aware that experts warn some products could cause more harm than good.
Dr. Sheilagh Maguiness, a dermatologist and president of Society for Pediatric Dermatology told CBS News earlier this year it’s important to look for age-appropriate products for young skin.
“What’s not good about caring for your skin, washing your face, wanting to establish good healthy skin care habits early? That’s great,” Maguiness said. “But what’s not great is the fact that some of the products that are being marketed to tweens and teens are not necessarily good or appropriate for their skin.”
So if you’re deciding on skincare gifts, here’s what’s safe and what’s best to skip.
Safe: Cleanser and sun protection
Using a gentle cleanser once or twice a day to wash your face is a great first step for those around age 11 or 12, Maguiness said.
“Even tweens could wash their face twice a day; as young as 8, that would be just fine,” she said.
After washing your face in the morning, Maguiness suggests applying a sunscreen with SPF 30 or greater. Then in the evening, swap that out for a gentle moisturizer.
“The only preventative product that you need in an arsenal at any age is sunscreen,” she said. “It is the No. 1 thing you can do to prevent your skin from aging and to prevent, even more importantly, the risk for skin cancer down the line.”
Skip: Harsh ingredients
Some harsh ingredients for young people to avoid include alpha and beta hydroxy acids (AHA and BHA), alcohol, highly fragranced products, and retinols and retinoids, plastic surgeon Dr. Smita Ramanadham, told CBS New York earlier this year.
“The biggest category to really avoid are those anti-aging products,” she said. “Young skin just does not need it. Young skin has collagen, elastin, it is hydrated, so we don’t need to add these extra ingredients that are really going to irritate and cause inflammation.”
Maguiness said she sees young girls come into her clinic with bags of unnecessary and potentially risky products.
“They’re actually damaging their skin barrier. They’re drying themselves out. They’re getting irritant dermatitis,” she said. “They’re using products that really just aren’t appropriate for the type of skin that they have.”