NAR Denver research
How Much Could Giving Up a Low Mortgage Rate Cost a Denver Mover?
What does this mean for my decision?
A higher rate can add a meaningful monthly cost: on the same $400,000, 30-year loan, 6.5% costs about $732 more per month in principal and interest than 3.5%. Whether moving makes sense also depends on the next price, sale proceeds, loan balance and the problem the move solves.
By Rick Janson, JD/MBA Realtor®
Published
How can I use these findings?
Compare staying with the specific move you are considering. Use your current balance and remaining term, estimate net sale proceeds, and calculate the next home’s complete payment with a lender’s actual quote. Then put the added monthly and one-time costs beside the benefit you need, such as a workable layout, less upkeep or proximity to family. The $732 example reveals the rate effect when the loan is held constant; your real move may change the amount borrowed substantially.
What is the cost of the rate difference alone?
The table compares equal loan amounts and equal 30-year terms. It deliberately isolates the rate input. It does not compare a real existing loan with a new purchase: an older mortgage generally has a different remaining balance and remaining term.
The presentation’s $400,000 and $586 monthly callout can be reproduced when $400,000 is a home price with 20% down, leaving a $320,000 loan. The same rate difference on a $400,000 loan is larger. Specifying price versus loan principal is essential.
Scroll horizontally to see all columns.
| Loan balance ($) | P&I at 3.5% ($/month) | P&I at 6.5% ($/month) | Rate-only increase ($/month) |
|---|---|---|---|
| 200000 | 898 | 1264 | 366 |
| 300000 | 1347 | 1896 | 549 |
| 400000 | 1796 | 2528 | 732 |
| 500000 | 2245 | 3160 | 915 |
| 600000 | 2694 | 3792 | 1098 |
Sources: NAR: Dr. Jessica Lautz, Leaders in Luxury presentation, October 12, 2026; underlying research resources; Consumer Financial Protection Bureau: understanding a Loan Estimate and full payment components
Where does Denver-area equity enter the comparison?
September county median single-family prices ranged from $500,000 to $838,864. Sale proceeds may reduce the next loan, but a county median cannot estimate proceeds from your present home. A property-specific valuation range and payoff statement are necessary.
A rate lock is one component of moving economics. Compare the present payment with the proposed home’s full payment after the actual proceeds, rather than applying a new rate to the present purchase price.
What is deliberately outside this model?
The model does not price the personal value of a different floor plan, a shorter commute or living closer to family. It also excludes moving and transaction costs. Those factors may support a move even when borrowing becomes more expensive, but this study cannot decide that for a household.
Unit: $/month. Values are shown above each bar.
Scroll horizontally to read the chart labels and values.
- 3.5% assumption
- 6.5% assumption
Companion guide: Should I Move If I Have a Low Mortgage Rate in Denver?
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