Higher mortgage interest rates lead to higher monthly payments. It can make a big difference to your short- and long-term financial health.
For example, according to Navy Federal Credit Union, dropping your rate by half a percent can save you thousands of dollars. On a $300,00 home, dropping the interest rate from 7.0 percent to 6.5 percent with a 20 percent down payment saves you roughly $80 per month. But more important, for the long term, it saves you more than $28,000 over a 30-year loan.
