Rate Impact Calculator
Rate Impact Table: $800K Loan
| Rate | Monthly P&I | vs. 6.875% | 30-yr Total Payments | 30-yr Diff vs. 6.875% |
|---|---|---|---|---|
| 5.500% | $4,542 | -$730/mo | $1,635,120 | -$262,800 |
| 6.000% | $4,796 | -$476/mo | $1,726,560 | -$171,360 |
| 6.500% | $5,056 | -$216/mo | $1,820,160 | -$77,760 |
| 6.875% (current) | $5,272 | — | $1,897,920 | — |
| 7.000% | $5,322 | +$50/mo | $1,915,920 | +$18,000 |
| 7.500% | $5,593 | +$321/mo | $2,013,480 | +$115,560 |
| 8.000% | $5,870 | +$598/mo | $2,113,200 | +$215,280 |
Key insight for $800K borrowers: Going from 7.0% to 6.5% saves $266/month — that's $95,760 over 30 years. Going from 7.5% to 6.5% saves $537/month — that's $193,320 over 30 years. On large NYC loans, even a 0.5% rate difference is a significant financial decision.
Rate Impact Table: $600K Loan
| Rate | Monthly P&I | vs. 6.875% | 30-yr Total |
|---|---|---|---|
| 5.500% | $3,407 | -$546/mo | $1,226,520 |
| 6.000% | $3,597 | -$356/mo | $1,294,920 |
| 6.500% | $3,792 | -$161/mo | $1,365,120 |
| 6.875% (current) | $3,953 | — | $1,423,080 |
| 7.000% | $3,992 | +$39/mo | $1,437,120 |
| 7.500% | $4,195 | +$242/mo | $1,510,200 |
| 8.000% | $4,403 | +$450/mo | $1,585,080 |
Rate Impact Table: $1M Loan
| Rate | Monthly P&I | vs. 6.875% | 30-yr Diff vs. 6.875% |
|---|---|---|---|
| 5.500% | $5,678 | -$912/mo | -$328,320 |
| 6.000% | $5,996 | -$594/mo | -$213,840 |
| 6.500% | $6,321 | -$269/mo | -$96,840 |
| 6.875% (current) | $6,590 | — | — |
| 7.000% | $6,653 | +$63/mo | +$22,680 |
| 7.500% | $6,992 | +$402/mo | +$144,720 |
| 8.000% | $7,338 | +$748/mo | +$269,280 |
Buying Points: Is It Worth It in NYC?
Mortgage points (discount points) let you buy down your rate by paying upfront. One point = 1% of the loan amount. On an $800K loan, one point = $8,000 and typically lowers your rate by 0.25%.
| Scenario ($800K Loan) | Points Cost | Rate | Monthly Payment | Monthly Savings | Break-Even |
|---|---|---|---|---|---|
| No points | $0 | 6.875% | $5,272 | — | — |
| 1 point | $8,000 | 6.625% | $5,125 | $147/mo | 54 months |
| 2 points | $16,000 | 6.375% | $4,993 | $279/mo | 57 months |
| 3 points | $24,000 | 6.125% | $4,862 | $410/mo | 59 months |
When buying points makes sense: If you plan to stay in the home for 5+ years (break-even is typically 4–6 years), buying 1–2 points is usually worth it on large NYC loans. The savings compound significantly over time. If you might sell or refinance within 3 years, skip the points.
Should You Wait for Lower Rates?
Many NYC buyers are wondering whether to wait for rates to drop before buying. Key considerations:
- Opportunity cost: In a rising price market, waiting costs more in appreciation than you'd save in rate. A 5% price increase on an $800K property is $40,000 — often more than the rate savings from waiting.
- Refinance option: "Marry the house, date the rate." If rates drop significantly, you can refinance. NYC buyers typically break even on a refinance in 2–3 years.
- Rate predictions are unreliable: No one consistently predicts mortgage rates. Timing the market has a poor track record.
- Rental cost: Continuing to rent while waiting for a lower rate means ongoing rent payments with no equity accumulation.
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Know your take-home pay before you shop for a mortgage rate — it determines what payment you can actually sustain.
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