How much faster will I pay off my mortgage if I lower my rate by 1%?
December 11, 2025
Comparisons
In this chart let's pretend you keep your payment the EXACT SAME.
If you put both loans at the same starting line (original purchase price and loan amount) then this is how it looks.
$350,000 on 8% rate = 360 months
$350,000 on 7% rate (with the same payment as the 8%) = 273 months
You save 7+ years
Here's the full chart:
From To Time Saved 8% 7% 87 months 7.875% 6.875% 86 months 7.75% 6.75% 85 months 7.625% 6.625% 84 months 7.5% 6.5% 84 months 7.375% 6.375% 83 months 7.25% 6.25% 82 months 7.125% 6.125% 81 months 7% 6% 80 months 6.875% 5.875% 79 months 6.75% 5.75% 79 months 6.625% 5.625% 78 months 6.5% 5.5% 77 months 6.375% 5.375% 76 months 6.25% 5.25% 76 months 6.125% 5.125% 75 months 6% 5% 74 months 5.875% 4.875% 73 months 5.75% 4.75% 72 months 5.625% 4.625% 72 months 5.5% 4.5% 71 months 5.375% 4.375% 70 months 5.25% 4.25% 69 months 5.125% 4.125% 69 months 5% 4% 68 months 4.875% 3.875% 67 months 4.75% 3.75% 67 months 4.625% 3.625% 66 months 4.5% 3.5% 65 months 4.375% 3.375% 65 months 4.25% 3.25% 64 months 4.125% 3.125% 63 months 4% 3% 62 months 3.875% 2.875% 62 months 3.75% 2.75% 61 months 3.625% 2.625% 61 months 3.5% 2.5% 60 months 3.375% 2.375% 59 months 3.25% 2.25% 59 months 3.125% 2.125% 58 months 3% 2% 57 months 2.875% 1.875% 57 months 2.75% 1.75% 56 months 2.625% 1.625% 56 months 2.5% 1.5% 55 months 2.375% 1.375% 54 months 2.25% 1.25% 54 months 2.125% 1.125% 53 months 2% 1% 53 months 1.875% 0.875% 52 months 1.75% 0.75% 52 months 1.625% 0.625% 51 months 1.5% 0.5% 51 months 1.375% 0.375% 50 months 1.25% 0.25% 50 months 1.125% 0.125% 49 months
These numbers change if you're further along in your mortgage.
It's more of an illustration at how much TIME 1% difference can make