How much does a 1% higher mortgage rate cost?
Monthly payment table at current rates, updated October 15, 2026.
Short answer: on a $300,000, 30-year fixed mortgage, a rate 1 percentage point higher (7.40% vs. 8.40%) costs about $208 more a month in principal and interest, or about $75,014 over 30 years.
The average 30-year fixed rate was 7.40% for the week of October 15, 2026, according to Freddie Mac, versus 6.27% a year earlier. On the same $300,000 loan, that one-year rise alone added about $226 a month.
Monthly payment by loan amount and rate
30-year fixed, principal and interest only. The middle rate column is the current Freddie Mac average.
| Loan amount | 6.40% | 7.40% | 8.40% | Cost of +1% (from 7.40%) | Extra over 30 years |
|---|---|---|---|---|---|
| $200,000 | $1,251 | $1,385 | $1,524 | $139/mo | $50,010 |
| $300,000 | $1,877 | $2,077 | $2,286 | $208/mo | $75,014 |
| $400,000 | $2,502 | $2,770 | $3,047 | $278/mo | $100,019 |
| $500,000 | $3,128 | $3,462 | $3,809 | $347/mo | $125,024 |
| $750,000 | $4,691 | $5,193 | $5,714 | $521/mo | $187,536 |
How to use this before you buy
- Stress-test at +1%. Run your deal at today's rate plus one point. If it only works at the lower number, it's a bet, not a plan.
- Write down your "still works" rate before you make an offer, and don't count on refinancing later.
- Negotiate the rate, not just the price. Seller-paid closing costs or a rate buydown can be worth more than a small price cut when rates are high.
How the math works
These figures use the standard fixed-rate amortization formula: payment = P × r / (1 − (1 + r)−n), where P is the loan amount, r is the annual rate divided by 12, and n is 360 monthly payments. Your lender's quote may differ slightly because of points, fees, and rounding.
FAQ
How much does a 1% higher mortgage rate cost per month?
On a $300,000 30-year fixed loan, going from 7.40% to 8.40% raises the monthly principal and interest payment by about $208, or roughly $75,014 over the life of the loan. At these rate levels, each extra percentage point adds about $69 a month per $100,000 borrowed.
What is the average 30-year mortgage rate right now?
Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed rate at 7.40% for the week of October 15, 2026, up from 6.27% a year earlier.
Does this include taxes and insurance?
No. The table shows principal and interest only. Property taxes, homeowners insurance, mortgage insurance, and HOA dues are extra and vary by location.
Sources: Freddie Mac Primary Mortgage Market Survey (rates for the week of October 15, 2026). Payments calculated by Wealth on Offense. For education only; not financial advice.
Related: Real estate briefings · Oct 16, 2026 issue (rates and inflation)
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