Mortgage Rate Impact Calculator
Rates are the single biggest variable in your monthly payment and total cost. This tool shows exactly what current rates mean for your loan - and what a change of 0.5%, 1%, or 1.5% would do to your payment, your total interest, and how much home you could afford.
Current 30-year fixed rate: 6.85% - updated 2026-07-05 (Freddie Mac via FRED)
Saved planning info: HomeCostClarity can remember planning assumptions on this device so you do not have to retype them in other calculators.
Stored only in your browser. No names, addresses, email, phone numbers, account data, or server sync.
Your Loan
Buydown, Refinance, and Extra Payment Assumptions
ARM Scenario
optional - stress test payment shock after the fixed period
Your Credit and Income
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A 1% change in mortgage rates can shift the monthly payment and buying power by meaningful amounts.
About this calculator
Last updated: 2026-07-07. Last reviewed: 2026-07-08. This calculator is educational only and estimates outcomes from the inputs, assumptions, and source data shown on the page. It does not provide financial, legal, mortgage, tax, insurance, real estate, or professional advice.
Assumptions
Uses entered price, down payment, loan term, rate, credit range, points, refinance timing, extra payments, and county context for conforming-limit checks.
Sources
Uses Freddie Mac mortgage-rate data via FRED, FHFA conforming loan limits, and amortization formulas for payment, interest, balance, and extra-payment scenarios.
Data freshness
Mortgage-rate and conforming-limit data are time-sensitive. The page labels estimated 20-year comparisons and displays the source date for the base rate.
How much does a 1% change in mortgage rate affect my payment?
A 1% change in mortgage rate changes the monthly principal and interest payment by roughly $55 to $60 per $100,000 borrowed.
How do mortgage rates affect buying power?
Because qualification is based on payment relative to income, lower rates let the same income support a larger loan while higher rates reduce buying power.
What is a jumbo loan and when does it apply?
A jumbo loan is a mortgage that exceeds the FHFA conforming loan limit for the county, which is higher in designated high-cost areas.