✅ the principal you borrowed
✅ all interest paid over the years
❌ It does NOT include taxes, insurance, or HOA unless noted.

Because longer terms spread payments out more slowly, they lower the monthly payment but massively increase total interest paid.

Below is a simple example to show how total payments change by loan term.

✅ Example: $300,000 loan at 6% interest
15-Year Mortgage

Monthly payment: ≈ $2,531

Total paid: ≈ $455,682

Total interest: ≈ $155,682

30-Year Mortgage

Monthly payment: ≈ $1,799

Total paid: ≈ $647,514

Total interest: ≈ $347,514

40-Year Mortgage

Monthly payment: ≈ $1,650

Total paid: ≈ $792,089

Total interest: ≈ $492,089

50-Year Mortgage

Monthly payment: ≈ $1,595

Total paid: ≈ $956,140

Total interest: ≈ $656,140

✅ Summary: Total Payments by Loan Term
Term Monthly Payment Total Paid Over Life Total Interest
15-Year ~$2,531 $455,682 $155,682
30-Year ~$1,799 $647,514 $347,514
40-Year ~$1,650 $792,089 $492,089
50-Year ~$1,595 $956,140 $656,140
✅ Key Takeaway

A longer mortgage = lower payment, but the total paid skyrockets because interest accrues for decades longer.

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Here are the main types of events that typically cause the 10-year yield to drop:

Economic slowdown or recession signs

Weak GDP, rising unemployment, or falling consumer spending make investors expect lower future interest rates.

Example: A bad jobs report or slowing manufacturing data often pushes yields lower.

Federal Reserve rate cuts (or expectations of cuts)

If the Fed signals or actually cuts rates, long-term yields like the 10-year typically decline.

Markets anticipate lower inflation and slower growth ahead.

Financial market stress or geopolitical tension

During crises (wars, banking issues, political instability), investors seek safety in Treasuries — pushing prices up and yields down.

Lower inflation or deflation data

When inflation slows more than expected, the “real” return on Treasuries looks more attractive, bringing yields down.

Dovish Fed comments or data suggesting easing ahead

Even before actual rate cuts, if the Fed hints it might ease policy, yields often fall in anticipation.

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🏦 1. Fed Rate vs. Market Rates

When the Federal Reserve cuts rates, it lowers the federal funds rate — the rate banks charge each other for overnight loans.
That directly affects:

Credit cards

Auto loans

Home equity lines of credit (HELOCs)
These tend to move quickly with Fed changes.

🏠 2. Mortgage Rates

Mortgage rates are not directly set by the Fed — they’re more closely tied to the 10-year Treasury yield, which moves based on investor expectations for:

Future inflation

Economic growth

Fed policy in the future

So, when the Fed signals a rate cut or actually cuts, Treasury yields often fall in anticipation, which can lead to lower mortgage rates — if investors believe inflation is under control and the economy is cooling.

However:

If markets think the Fed cut too early or inflation might return, yields can actually rise, keeping mortgage rates higher.

So, mortgage rates don’t always fall right after a Fed cut.

📉 In short:

Fed cuts → short-term rates (credit cards, HELOCs) usually fall fast.

Mortgage rates → might fall if inflation expectations drop and bond yields decline — but not guaranteed.

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