What are the monthly payments on a $900,000 mortgage after the recent Fed rate cut?

After months of elevated borrowing costs, mortgage shoppers finally saw rates ease this fall following the Federal Reserve's back-to-back rate cuts, which lowered the benchmark rate by 50 basis points in total. The Fed rate cuts, which slashed the benchmark rate by 25 basis points in September and then another 25 basis points in October, prompted mortgage lenders to lower their rates, resulting in the average 30-year mortgage loan rate dipping into the low-6% range, reversing much of the rate pressure that had built earlier in the year. 

Still, affordability remains strained for many homebuyers, especially those taking out large mortgage loans, which often come with higher credit standards and larger, long-term financial commitments. And that pressure shows up quickly with a mortgage loan as large as $900,000. At that amount, even minor rate movements can generate hundreds of dollars in added monthly payments, making timing especially important for borrowers in this cooling-but-still-high-cost environment. After all, the actual monthly payment on your mortgage depends heavily on the mortgage rate you lock in. 

So what does a $900,000 mortgage cost each month at today's rates, and how do those figures stack up to recent averages? That's what we'll break down below.

Learn how affordable your mortgage loan could be at today's rates.

What are the monthly payments on a $900,000 mortgage after the recent Fed rate cut?

Right now, the 30-year mortgage rate sits at 6.12%, down from over 7% at the start of the year. Meanwhile, 15-year mortgage rates are sitting at an average of 5.37% currently, compared to over 6.2% at the start of the year. Here's what the monthly payments on a $900,000 mortgage loan would be at today's average rates:

• 30-year mortgage loan at 6.12%: At this rate, your monthly mortgage payment would be $5,465.59.
• 15-year mortgage loan at 5.37%: At this rate, your monthly mortgage payment would be $7,291.81.

To fully understand where things stand now, it helps to compare the payments at today's rates with what the payments would have been in prior rate environments. For example, here's what your monthly mortgage payments would have been in September 2025, when the 30-year mortgage rate averaged 6.41% and the 15-year mortgage rate averaged 5.78%:

• 30-year mortgage loan at 6.41%: At this rate, your monthly mortgage payment would have been $5,635.45.
• 15-year mortgage loan at 5.78%: At this rate, your monthly mortgage payment would have been $7,488.16.

The difference between the payments in October and September may not seem substantial at first glance, but when you do the math, the savings are clear. A borrower taking out a 30-year mortgage at today's average saves more than $169 per month and more than $2,038 per year compared to September. For 15-year mortgage loan borrowers, today's rates reduce the payment by over $196 each month and over $2,356 per year.

Now let's compare today's costs with January 2025, when mortgage rates were materially higher, averaging 7.04% on a 30-year mortgage loan and 6.27% on a 15-year mortgage loan. Here's what your monthly payments would have been at those rates:

• 30-year mortgage loan at 7.04%: At this rate, your monthly mortgage payment would have been $6,011.92.
• 15-year mortgage loan at 6.27%: At this rate, your monthly mortgage payment would have been $7,726.62.

These figures illustrate how much improvement has occurred since the start of the year. A borrower taking out a 30-year mortgage today saves more than $546 per month and more than $6,555 per year compared to the start of the year. And, 15-year mortgage loan borrowers stand to save about $434 each month and over $5,217 per year at today's rates.

Back in August 2024, mortgage rates were higher than they are today, though not as high as what was offered at the start of the year. At an average rate of 6.53% for 30-year mortgage loans and 5.92% for 15-year loans, here's what the monthly payments would have been late last year:

• 30-year mortgage loan at 6.53%: At this rate, your monthly mortgage payment would have been $5,706.38.
• 15-year mortgage loan at 5.92%: At this rate, your monthly mortgage payment would have been $7,555.87.

While the year-over-year drop isn't as dramatic as the drop that occurred between January and November of this year, the savings still add up to over $240 per month and over $2,889 per year on a 30-year mortgage loan. And, borrowers opting for 15-year mortgage loans would save about $264 each month and about $3,169 annually at today's rates.

Compare today's top mortgage loans here.

How much would it cost to refinance a $900,000 mortgage loan at the current rates?

Some homeowners may also be considering whether today's rates make refinancing worthwhile. Here's what a $900,000 refinanced mortgage costs at today's averages:

• 30-year refinance loan at 6.78%: At this rate, your monthly mortgage payment would have been $5,855.34
• 15-year refinance loan at 5.76%: At this rate, your monthly mortgage payment would have been $7,478.51

For homeowners who locked in a rate when mortgage averages were in the 7% range, refinancing could reduce their monthly payment or shorten the loan term without a massive jump. But borrowers should also weigh closing costs, the break-even timeline and how long they plan to remain in the home, all of which are factors that can determine whether a refinance genuinely saves money over time.

The bottom line

A $900,000 mortgage is a major financial responsibility, but today's rates, softened by the Fed's recent cuts, make the monthly payment more manageable than it would have been earlier in 2025 or late 2024. Buyers today can expect savings of hundreds of dollars per month compared to those earlier rate environments. And for current homeowners with higher-rate loans, refinancing may unlock additional savings depending on their existing rate and long-term plans.