Mortgage rates stayed near the same level this week, leaving Miami buyers with a much higher borrowing cost than a year ago. The national average for a 30-year fixed home loan was 7.40% on October 15, unchanged from the week before, according to Freddie Mac.

A year earlier, that average was 6.27%. Freddie Mac’s survey covers a specific type of purchase loan, with a 20% down payment and excellent credit. It is a national benchmark, rather than a Miami average or an offer every buyer can get.

What that means in dollars

Take a hypothetical $700,000 home purchase with $140,000 down. That leaves a $560,000 mortgage. On a 30-year fixed loan at 7.40%, the monthly principal and interest would be about $3,877. Principal is the money you borrowed; interest is what the lender charges for lending it.

At last year’s 6.27% benchmark, the same loan would cost about $3,455 a month. That is a difference of roughly $422 a month, or $5,064 a year, for the same purchase price, down payment and loan length.

These are calculated examples, not quotes for a listed home. They leave out property taxes, insurance, association fees and closing costs. Keeping those costs outside the example makes the rate change easier to see, but they still belong in a buyer’s budget.

Build the full monthly budget

The Consumer Financial Protection Bureau’s home budget guide lists costs beyond the loan payment. They include property taxes, homeowners insurance, mortgage insurance when required, any needed extra coverage such as flood insurance, and homeowners association fees.

For a Miami condo buyer, that means adding the association’s monthly charge to the loan payment before comparing homes. Money for repairs and upkeep also needs a place in the budget. A lender’s payment figure and your full cost of owning the home can be different numbers.

Compare the same details across lenders

Ask more than one lender for a Loan Estimate, the standard form that lays out the loan’s terms and costs. The CFPB’s Loan Estimate explainer shows where to find the interest rate, monthly payment and closing costs.

Check which taxes and insurance costs are included in the payment and which you would pay separately. Then compare offers using the same loan amount and length. A lower quoted rate is only one part of the bill; the fees and cash needed at closing also affect what you will pay.