Mortgage Calculator: See How Much You Will Save Now That Rates Have Dropped

A day after the Federal Reserve’s historic interest rate cut this week, mortgage rates dropped to 6.09% for a 30-year fixed loan.

That’s a two-year low—and a steep decline from nearly a year ago, when rates reached a 23-year high of 7.79% in October 2023.

This rate drop has “dramatically improved buying power across the U.S., further bolstered by easing prices in some areas,” notes Hannah Jones, Realtor.com® senior economic research analyst.

So how much are homebuyers now saving? We crunched the numbers to find out. Here are the basics nationwide:

• In October 2023, the national median list price was $425,000.

• The monthly mortgage payment (principal and interest) in October 2023 at the peak rate of 7.79% was $2,445.

• In August 2024, the national median list price was $429,990.

• The monthly mortgage payment (principal and interest) in September 2024 at the rate of 6.09% is $2,082.

• This means that homebuyers nationally save $363 per month since rates peaked. That’s a whopping $4,356 per year.

Curious about how much you could be saving yourself? Homebuyers can use the Realtor.com mortgage calculator to determine their own personal potential savings based on current interest rates, home prices in their area, and other variables tailored to their situation.

Cities that have seen the biggest savings

While the typical homebuyer will save $363 per month, there’s a wide range of savings based on the local housing market.

Generally, savings will be bigger where home prices are higher. Many of these expensive markets have also experienced price cuts since October 2023, which can further pad a buyer’s bottom line.

Here are the top 10 cities that have seen the biggest savings on monthly mortgage payments in the wake of rates dropping to a two-year low.

San Jose, CA

October 2023 median list price: $1,380,694
August 2024 median list price: $1,399,000
October 2023 monthly mortgage payment (at 7.79%): $8,027.97
September 2024 monthly mortgage payment (at 6.02%): $6,775.07
Savings since rates peaked: $1,252.90

Los Angeles, CA

October 2023 median list price: $1,159,000
August 2024 median list price: $1,190,000
October 2023 monthly mortgage payment (at 7.79%): $6,738.94
September 2024 monthly mortgage payment (at 6.02%): $5,762.92
Savings since rates peaked: $976.02

San Francisco, CA

October 2023 median list price: $1,098,000
August 2024 median list price: $969,000
October 2023 monthly mortgage payment (at 7.79%): $6,384.26
September 2024 monthly mortgage payment (at 6.02%): $4,692.67
Savings since rates peaked: $1,691.59

Oxnard, CA

October 2023 median list price: $1,050,000
August 2024 median list price: $1,050,000
October 2023 monthly mortgage payment (at 7.79%): $6,105.17
September 2024 monthly mortgage payment (at 6.02%): $5,084.93
Savings since rates peaked: $1,020.23

San Diego, CA

October 2023 median list price: $999,000
August 2024 median list price: $999,000
October 2023 monthly mortgage payment (at 7.79%): $5,808.63
September 2024 monthly mortgage payment (at 6.02%): $4,837.95
Savings since rates peaked: $970.68

Bridgeport, CT

October 2023 median list price: $889,225
August 2024 median list price: $800,000
October 2023 monthly mortgage payment (at 7.79%): $5,170.35
September 2024 monthly mortgage payment (at 6.02%): $3,874.23
Savings since rates peaked: $1,296.11

Boston, MA

October 2023 median list price: $837,374
August 2024 median list price: $834,500
October 2023 monthly mortgage payment (at 7.79%): $4,868.86
September 2024 monthly mortgage payment (at 6.02%): $4,041.31
Savings since rates peaked: $827.55

Honolulu, HI

October 2023 median list price: $798,750
August 2024 median list price: $725,000
October 2023 monthly mortgage payment (at 7.79%): $4,644.29
September 2024 monthly mortgage payment (at 6.02%): $3,511.02
Savings since rates peaked: $1,133.26

Seattle, WA

October 2023 median list price: $792,250
August 2024 median list price: $775,000
October 2023 monthly mortgage payment (at 7.79%): $4,606.49
September 2024 monthly mortgage payment (at 6.02%): $3,753.16
Savings since rates peaked: $853.33

New York, NY

October 2023 median list price: $729,444
August 2024 median list price: $750,000
October 2023 monthly mortgage payment (at 7.79%): $4,241.31
September 2024 monthly mortgage payment (at 6.02%): $3,632.09
Savings since rates peaked: $609.22