With 20% down at a 6.75% rate, a $350,000 home costs about $2,254 a month once property tax and insurance are added to the $1,816.07 principal and interest payment. Over 30 years the interest alone comes to $373,787.
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The monthly payment at 6.75% and 20% down
| Item | Monthly |
|---|---|
| Principal and interest on $280,000 | $1,816.07 |
| Property tax (1.2%) | $350.00 |
| Homeowners insurance (0.3%) | $87.50 |
| Total | $2,253.57 |
Principal and interest by rate and down payment
| Rate | 5% down | 10% down | 20% down |
|---|---|---|---|
| 5.5% | $1,887.90 | $1,788.54 | $1,589.81 |
| 6% | $1,993.51 | $1,888.58 | $1,678.74 |
| 6.5% | $2,101.63 | $1,991.01 | $1,769.79 |
| 7% | $2,212.13 | $2,095.70 | $1,862.85 |
| 7.5% | $2,324.89 | $2,202.53 | $1,957.80 |
Total monthly payment including tax, insurance and PMI
| Rate | 5% down | 10% down | 20% down |
|---|---|---|---|
| 5.5% | $2,519 | $2,410 | $2,027 |
| 6% | $2,625 | $2,510 | $2,116 |
| 6.5% | $2,733 | $2,612 | $2,207 |
| 7% | $2,844 | $2,717 | $2,300 |
| 7.5% | $2,956 | $2,824 | $2,395 |
Look at how the columns behave. Going from 20% down to 10% down adds both a larger loan and PMI, so the total payment rises by $411 a month at 6.75%.
Income needed
If a lender caps housing cost at 28% of gross income, the $2,254 payment above needs a household income of about $96,582 a year ($8,048 a month), before counting other debts.
What we assumed
- 30-year fixed rate unless a table says otherwise; payments are principal and interest (P&I) unless labeled as total.
- Property tax 1.2% of price per year and homeowners insurance 0.3% of price per year, both illustrative.
- PMI of 0.7% of the loan per year when the down payment is under 20%, until the balance reaches 80% of the price.
- No closing costs, points or HOA dues.
Related calculators: Mortgage Calculator, Home Affordability Calculator.
Questions people ask
Does the down payment change the rate?
Often. Lenders price risk, so a larger down payment and a higher credit score can lower the rate. These tables hold the rate fixed so you can see the effect of the down payment alone.
Why is the tax number a rough guess?
Effective property tax rates vary widely by county. Replace 1.2% with your local rate in the calculator.
Estimates for general education, not financial, tax or legal advice. Real results depend on your lender, employer, tax situation and location. See the disclaimer.