A monthly payment at a 7.4% mortgage rate works out to roughly $4,150 for every $600,000 borrowed, before taxes and insurance. Freddie Mac's weekly survey put the 30-year average at 7.40% on Oct. 15, so that is the number most Utah buyers are measuring against right now.
I'll keep this plain. Below are the numbers, how I got them, and a few options to ask a lender about.
Where rates stand today
Freddie Mac's weekly survey held the 30-year fixed average at 7.40% on Oct. 15. The same reporting notes it had risen to 7.28% the week of Oct. 1, and that this is the highest level since late 2023. Yahoo Finance, Fox Business and The Mortgage Reports have all covered the move.
A national average is a starting point, not a quote. The rate a lender offers you depends on your own credit, down payment, loan type and the day you lock. Only a lender can tell you your number.
What the payment looks like
These are my own calculations, not figures from a source. I used a standard 30-year fixed loan at 7.40% and counted principal and interest only. Property taxes, homeowners insurance, mortgage insurance and any HOA dues are extra, and they vary by home.
Here are the rounded results on three loan amounts:
- A $600,000 loan: about $4,150 a month
- A $900,000 loan: about $6,230 a month
- A $1,500,000 loan: about $10,380 a month
These are loan amounts, not purchase prices. Your down payment changes how much you borrow. A lender can run the exact math for a specific home.
The payment scales in a straight line with the loan. Every additional $100,000 borrowed adds roughly $690 a month at this rate. That is a handy rule of thumb when you are comparing homes in places like Sandy, South Jordan or Draper, where prices cover a wide range.
Options worth asking a lender about
When rates are high, people hear about a few tools. Here is what each one is in general terms. None of this is lending advice, and what is available to you depends on your situation.
A rate buydown means paying an upfront cost, sometimes called points, to lower the interest rate. Some buydowns are temporary and lower the rate for the first year or two. Others lower it for the life of the loan. Sellers or builders sometimes offer to cover part of that cost, so it can be a point of negotiation.
An adjustable-rate mortgage, or ARM, has a fixed rate for a set period and then can change. The starting rate is often lower than a 30-year fixed. The catch is that the payment can go up later, so it matters how long you plan to keep the loan. Ask what the caps are and when the first adjustment happens.
A VA loan is a mortgage program backed by the Department of Veterans Affairs for eligible veterans and service members. It can allow a loan with no down payment and has its own rules on fees and limits. A lender who works with VA loans can confirm eligibility and terms.
Some buyers also look at a larger down payment, a different loan term, or a plan to refinance later if rates fall. A refinance is never guaranteed, since no one knows where rates will go. Ask a lender to show you the payment if you stay in the loan for the full term.
How to think about it before you shop
Start with the monthly payment you are comfortable with, then work backward. Add a realistic estimate for taxes, insurance and any HOA dues. Salt Lake County property taxes and HOA fees both differ from one home to the next, and we have covered those in other posts.
Get a pre-approval before you tour homes. It shows you a real rate and a real budget, and it lets you compare the cost of different loan types side by side.
Ask for a written estimate from more than one lender. Rates and fees can differ, and the comparison is free.
If you own a home now, the same math applies to the home you want next. Your current loan may have a lower rate than anything available today, so ask your lender what giving it up would cost over time. A tax professional can speak to how a sale or purchase affects your own return.
What I'd keep in mind
Rates move every week. A number that looks high today may look different in a few months, and I will not guess which way it goes. What helps is knowing your payment at today's rate, and knowing what you would do if the rate changed.
A home is more than a rate. Layout, lot, condition and location all matter, and so does whether the monthly cost fits your life. Taking the time to run the numbers first makes the rest of the search calmer.
If you have questions about what a payment could look like on a home in Salt Lake City, Bountiful, Holladay, Draper, South Jordan, Sandy or anywhere along the Wasatch Front, reach out to The Luxury Agency. We can walk through the numbers with you and connect you with a lender for your own case.
Talk soon, Parry
Sources
Freddie Mac: Mortgage rates hold steady at 7.40%
Yahoo Finance: Mortgage rates held steady this week at 7.4%, Oct. 15, 2026
