Rates Changed, How Much Does the Payment Change?


Mortgage interest rates change in 1/8th point increments.  For example, the different rates between 3% and 4% would be 3%, 3.125%, 3.25%, 3.375%, 3.5%, 3.625%, 3.75%, 3.875%, and 4.0%. 

When rates change, the payment obviously changes, but by how much?

Here is a good guide for various loan amounts.

For a $100,000 loan, the payment will change by about $7.50 for every 1/8th point change in interest rate.

For a $200,000 loan, the payment will change by about $15 for every 1/8th point change in interest rate.

For a $300,000 loan, the payment will change by about $23 for every 1/8th point change in interest rate.

For a $400,000 loan, the payment will change by about $30 for every 1/8th point change in interest rate.


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