Loan Impact Calculator
See how even a small change in basis points can significantly affect your monthly mortgage payment and total interest paid over the life of your loan.
Loan Impact Estimator
See how a basis-point change affects your monthly mortgage payment.
Original payment
$1,945.79
/month
New payment
$1,995.91
at 7.00%
Difference
+$50.11
/month
Total interest over the life of the loan
Estimate only. Assumes a fixed-rate, fully-amortizing loan with no fees, taxes, or insurance. Actual payments may vary. This is not financial advice.
How basis points affect your mortgage
When interest rates change by even a small number of basis points, the effect on monthly payments and total interest can be substantial — especially on large, long-term loans like mortgages.
Example scenario
Consider a $400,000 loan with a 30-year term. At 6.50%, the monthly payment is approximately $2,528. If rates increase by 25 bps to 6.75%, the payment rises to about $2,594 — an increase of $66 per month or roughly $23,760 in additional interest over 30 years.
Why small changes matter
Over a 30-year mortgage, even 10 basis points (0.10%) can add thousands of dollars in interest. This is why homebuyers and refinancers track Federal Reserve rate decisions and bond market movements closely.
Assumptions and limitations
This calculator uses a standard fixed-rate amortization formula. It does not account for adjustable rates, private mortgage insurance (PMI), property taxes, homeowner’s insurance, HOA fees, or closing costs. The results are estimates for comparison purposes only. Consult a licensed mortgage professional for personalized advice.