Here's a video on the difference in the total cost of a loan. 3% vs 5% interest rate.

hey everybody this is reggie powell in

case you haven't been paying attention

interest rates have shut up like crazy

over the last month uh they were three

and a half percent earlier in the year

and now they're well over five percent

right now for interest rates uh just

last year my wife and i refinanced our

home at 2.5

but now yeah we're at five percent so

this video is just to show you a

difference between what a three percent

versus five percent loan would do over

the life of a loan for a home uh the

home that we're using in this video is

going to be a 600 000 home purchase with

five percent down so thirty thousand

dollars down financing uh five hundred

and seventy thousand dollars so at three

percent interest your monthly payment on

a thirty year loan is thirty two hundred

forty four

uh on a five percent interest loan that

payment jumps up to thirty nine hundred

and one dollars a month uh which is an

increase of six hundred and fifty seven

dollars a month and that's twenty

percent more that you're paying every

single month if you look at these loans

at three percent interest

twenty four hundred and three dollars is

going towards the principal interest and

then on the five percent interest loan

three thousand sixty dollars is going

towards a principal in interest also

included in that larger price is

property taxes

which is 375

on property mortgage insurance obviously

those numbers are going to vary

depending on your insurance company and

property taxes in the county that you

live in so over the life of the loan on

a three percent interest loan it's gonna

be two hundred ninety five thousand one

hundred thirty two dollars that same

loan at five percent over the course of

the loan is gonna cost you

five hundred and 531

dollars in interest uh which is a

difference of eighty percent so just

that two percent change that we've seen

over the last uh couple months here

makes a significant impact on how much

you're actually spending on that house

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