How much does a $500,000 mortgage cost monthly now that interest rates were cut?

Before you take out a mortgage loan, it's important to know what the monthly payments could be at today's rates. MicroStockHub/Getty Images

After months of waiting, borrowers have finally gotten the shift in monetary policy they've been waiting for. The Federal Reserve cut its benchmark interest rate by 25 basis points yesterday — marking the first cut of 2025 and lowering the benchmark rate to a range of 4% to 4.25%, down from a range of 4.25% to 4.5%. The move followed nearly a year of the Fed holding rates steady as policymakers grappled with sticky and then rising inflation .

However, mortgage rates reacted to the mix of rate cut speculation and 10-year Treasury yield declines before the Fed's decision was even official. Shortly before the Fed's announcement, the averag