What does an 8% mortgage rate mean for YOU? Higher rates will cost the average American homeowner an extra HALF A MILLION dollars in the course of a 30-year loan (You’ll own nothing)

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Homebuyers today face paying $500,000 more in the course of a 30-year mortgage than they would have done two years ago after rates shot up to 8 percent.

Analysis by DailyMail.com found that in 2021, an individual purchasing a $400,000 home would pay just $1,621 each month on their loan.

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However, today that figure stands at $2,788 – a difference of over $1,100 per month. The findings assume the house was bought with a 5 percent downpayment.

In the course of a 30-year loan, it means somebody buying today would have to fork out over $1 million in mortgage payments. It is almost double the $583,416 they would pay on a loan taken out in October 2021 when rates were 3.09 percent.

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Mortgage News Daily reported that the average rate on a 30-year loan had shot up to 8 percent today for the first time since 2000.

https://www.dailymail.co.uk/yourmoney/article-12650807/What-does-8-mortgage-rate-mean-Higher-rates-cost-average-American-homeowner-extra-HALF-MILLION-dollars-course-30-year-loan.html