How Much a $250,000 Mortgage Will Cost You Each Month (2024)

The monthly payment isn’t the only cost you’ll want to think about when taking out a mortgage. To gauge the real cost of your loan, you’ll need to think about interest, too — or how much it costs to borrow the money over time.

Monthly payments for a $250,000 mortgage

Your monthly payment will depend on your interest rate and loan term — or how long your loan lasts.

On a $250,000 fixed-rate mortgage with an annual percentage rate (APR) of 6%, you’d pay $1,498.88 per month for a 30-year term or $2,109.64 for a 15-year one.

These estimates only include principal and interest. Other costs that are typically lumped into your monthly payment, including taxes and insurance, vary widely and are not included here.

Use our to determine the full cost of your loan.

Annual percentage rate (APR)	Monthly payment(15-year)	Monthly payment(30-year)
6.00%	$2,109.64	$1,498.88
6.25%	$2,143.56	$1,539.29
6.50%	$2,177.77	$1,580.17
6.75%	$2,212.27	$1,621.50
7.00%	$2,247.07	$1,663.26
7.25%	$2,282.16	$1,705.44
7.50%	$2,317.53	$1,748.04
7.75%	$2,353.19	$1,791.03
8.00%	$2,389.13	$1,834.41

Annual percentage rate (APR)

Monthly payment(15-year)

Monthly payment(30-year)

6.00%

$2,109.64

$1,498.88

6.25%

$2,143.56

$1,539.29

6.50%

$2,177.77

$1,580.17

6.75%

$2,212.27

$1,621.50

7.00%

$2,247.07

$1,663.26

7.25%

$2,282.16

$1,705.44

7.50%

$2,317.53

$1,748.04

7.75%

$2,353.19

$1,791.03

8.00%

$2,389.13

$1,834.41

Check out: 20- vs 30-Year Mortgage: Is an Unusual Option Right for You?

Where to get a $250,000 mortgage

If you qualify, you can get a $250,000 mortgage from any mortgage lender, bank, or credit union. Rates and terms vary by loan servicer, though, so you’ll need to shop around to get the best deal.

Traditionally, this would mean reaching out to each lender individually to get a quote, which can be time-consuming and tedious.

With Credible, shopping around for your loan is much more streamlined. It only takes a few minutes to compare several mortgage lenders at once.

What to consider before applying for a $250,000 mortgage

Before taking out a $250,000 mortgage, you’ll want to be well aware of the costs it will come with. These costs include interest, your down payment, and sometimes insurance and other fees.

There are also closing costs which typically clock in somewhere between 2% and 5% of the total loan amount.

Total interest paid on a $250,000 mortgage

The total amount of interest you’ll pay on a $250,000 mortgage will vary based on your interest rate and loan term. High interest rates and long terms will result in the most interest over time, while shorter terms and low interest rates will save you on interest and let you pay off your home loan sooner.

Example: On a 15-year, $250,000 mortgage with 6% APR, you’d end up paying $129,735.57 in total interest over the life of your loan.

However, if you chose a 30-year mortgage at the same rate, your interest costs would jump significantly, and you’d pay $289,595.47 by the end of your loan term.

Amortization schedule on a $250,000 mortgage

An amortization schedule spells out the annual principal and interest costs for each year of a home loan and can be a good way to gauge the long-term costs of financing your house.

As the examples below show, your monthly mortgage payments go mostly toward interest at the beginning of your loan and more toward principal further into your term.

Here’s what an amortization schedule for a 30-year, $250,000 loan looks like, assuming a 6% APR:

Year	Beginning balance	Monthly payment	Total interest paid	Total principal paid	Remaining balance
1	$250,000.00	$1,498.88	$14,916.49	$3,070.03	$246,929.97
2	$246,929.97	$1,498.88	$14,727.13	$3,259.38	$243,670.59
3	$243,670.59	$1,498.88	$14,526.10	$3,460.41	$240,210.18
4	$240,210.18	$1,498.88	$14,312.67	$3,673.84	$236,536.33
5	$236,536.33	$1,498.88	$14,086.08	$3,900.44	$232,635.89
6	$232,635.89	$1,498.88	$13,845.51	$4,141.01	$228,494.88
7	$228,494.88	$1,498.88	$13,590.10	$4,396.42	$224,098.46
8	$224,098.46	$1,498.88	$13,318.94	$4,667.58	$219,430.89
9	$219,430.89	$1,498.88	$13,031.05	$4,955.47	$214,475.42
10	$214,475.42	$1,498.88	$12,725.41	$5,261.11	$209,214.31
11	$209,214.31	$1,498.88	$12,400.91	$5,585.60	$203,628.71
12	$203,628.71	$1,498.88	$12,056.41	$5,930.11	$197,698.60
13	$197,698.60	$1,498.88	$11,690.65	$6,295.87	$191,402.74
14	$191,402.74	$1,498.88	$11,302.34	$6,684.18	$184,718.56
15	$184,718.56	$1,498.88	$10,890.07	$7,096.45	$177,622.11
16	$177,622.11	$1,498.88	$10,452.38	$7,534.14	$170,087.97
17	$170,087.97	$1,498.88	$9,987.69	$7,998.83	$162,089.14
18	$162,089.14	$1,498.88	$9,494.34	$8,492.18	$153,596.97
19	$153,596.97	$1,498.88	$8,970.56	$9,015.96	$144,581.01
20	$144,581.01	$1,498.88	$8,414.47	$9,572.04	$135,008.97
21	$135,008.97	$1,498.88	$7,824.09	$10,162.42	$124,846.54
22	$124,846.54	$1,498.88	$7,197.29	$10,789.22	$114,057.32
23	$114,057.32	$1,498.88	$6,531.84	$11,454.68	$102,602.64
24	$102,602.64	$1,498.88	$5,825.34	$12,161.18	$90,441.47
25	$90,441.47	$1,498.88	$5,075.27	$12,911.25	$77,530.22
26	$77,530.22	$1,498.88	$4,278.93	$13,707.59	$63,822.63
27	$63,822.63	$1,498.88	$3,433.47	$14,553.04	$49,269.59
28	$49,269.59	$1,498.88	$2,535.87	$15,450.64	$33,818.95
29	$33,818.95	$1,498.88	$1,582.91	$16,403.60	$17,415.34
30	$17,415.34	$1,498.88	$571.17	$17,415.34	$0.00

Year

Beginning balance

Monthly payment

Total interest paid

Total principal paid

Remaining balance

$250,000.00

$1,498.88

$14,916.49

$3,070.03

$246,929.97

$1,498.88

$14,727.13

$3,259.38

$243,670.59

$1,498.88

$14,526.10

$3,460.41

$240,210.18

$1,498.88

$14,312.67

$3,673.84

$236,536.33

$1,498.88

$14,086.08

$3,900.44

$232,635.89

$1,498.88

$13,845.51

$4,141.01

$228,494.88

$1,498.88

$13,590.10

$4,396.42

$224,098.46

$1,498.88

$13,318.94

$4,667.58

$219,430.89

$1,498.88

$13,031.05

$4,955.47

$214,475.42

$1,498.88

$12,725.41

$5,261.11

$209,214.31

$1,498.88

$12,400.91

$5,585.60

$203,628.71

$1,498.88

$12,056.41

$5,930.11

$197,698.60

$1,498.88

$11,690.65

$6,295.87

$191,402.74

$1,498.88

$11,302.34

$6,684.18

$184,718.56

$1,498.88

$10,890.07

$7,096.45

$177,622.11

$1,498.88

$10,452.38

$7,534.14

$170,087.97

$1,498.88

$9,987.69

$7,998.83

$162,089.14

$1,498.88

$9,494.34

$8,492.18

$153,596.97

$1,498.88

$8,970.56

$9,015.96

$144,581.01

$1,498.88

$8,414.47

$9,572.04

$135,008.97

$1,498.88

$7,824.09

$10,162.42

$124,846.54

$1,498.88

$7,197.29

$10,789.22

$114,057.32

$1,498.88

$6,531.84

$11,454.68

$102,602.64

$1,498.88

$5,825.34

$12,161.18

$90,441.47

$1,498.88

$5,075.27

$12,911.25

$77,530.22

$1,498.88

$4,278.93

$13,707.59

$63,822.63

$1,498.88

$3,433.47

$14,553.04

$49,269.59

$1,498.88

$2,535.87

$15,450.64

$33,818.95

$1,498.88

$1,582.91

$16,403.60

$17,415.34

$1,498.88

$571.17

$17,415.34

$0.00

Here’s what an amortization schedule for a 15-year, $250,000 loan looks like, assuming a 6% APR:

Year	Beginning balance	Monthly payment	Interest paid	Principal paid	Ending Principal Balance
1	$250,000	$2,109.64	$14,711.54	$10,604.17	$239,395.83
2	$239,395.83	$2,109.64	$14,057.49	$11,258.21	$228,137.62
3	$228,137.62	$2,109.64	$13,363.11	$11,952.59	$216,185.03
4	$216,185.03	$2,109.64	$12,625.90	$12,689.80	$203,495.23
5	$203,495.23	$2,109.64	$11,843.22	$13,472.48	$190,022.75
6	$190,022.75	$2,109.64	$11,012.27	$14,303.43	$175,719.31
7	$175,719.31	$2,109.64	$10,130.07	$15,185.64	$160,533.67
8	$160,533.67	$2,109.64	$9,193.45	$16,122.26	$144,411.42
9	$144,411.42	$2,109.64	$8,199.06	$17,116.64	$127,294.78
10	$127,294.78	$2,109.64	$7,143.35	$18,172.36	$109,122.42
11	$109,122.42	$2,109.64	$6,022.52	$19,293.19	$89,829.23
12	$89,829.23	$2,109.64	$4,832.55	$20,483.15	$69,346.08
13	$69,346.08	$2,109.64	$3,569.20	$21,746.51	$47,599.57
14	$47,599.57	$2,109.64	$2,227.92	$23,087.78	$24,511.79
15	$24,511.79	$2,109.64	$803.92	$24,511.79	$0.00

Year

Beginning balance

Monthly payment

Interest paid

Principal paid

Ending Principal Balance

$250,000

$2,109.64

$14,711.54

$10,604.17

$239,395.83

$2,109.64

$14,057.49

$11,258.21

$228,137.62

$2,109.64

$13,363.11

$11,952.59

$216,185.03

$2,109.64

$12,625.90

$12,689.80

$203,495.23

$2,109.64

$11,843.22

$13,472.48

$190,022.75

$2,109.64

$11,012.27

$14,303.43

$175,719.31

$2,109.64

$10,130.07

$15,185.64

$160,533.67

$2,109.64

$9,193.45

$16,122.26

$144,411.42

$2,109.64

$8,199.06

$17,116.64

$127,294.78

$2,109.64

$7,143.35

$18,172.36

$109,122.42

$2,109.64

$6,022.52

$19,293.19

$89,829.23

$2,109.64

$4,832.55

$20,483.15

$69,346.08

$2,109.64

$3,569.20

$21,746.51

$47,599.57

$2,109.64

$2,227.92

$23,087.78

$24,511.79

$2,109.64

$803.92

$24,511.79

$0.00

How to get a $250,000 mortgage

If you’ve weighed both the upfront and long-term costs of a $250,000 mortgage and are comfortable moving forward, it’s time to start the mortgage process.

Here are the steps to follow to get a mortgage:

Estimate your home budget: Add up your monthly household income, as well as your debts, bills, and other regular costs, and see how much you can comfortably afford. You can use a mortgage calculator to gauge the monthly payment for a particular home price but don’t forget to factor in other housing costs too, like maintenance and homeowners association (HOA) dues.
Review your credit report: Your credit will play a factor in what mortgage rate you qualify for, so review your credit report to see where you stand. If your report shows lots of debt or your score is low, you might want to improve your credit before applying for the loan.
Get pre-approved: A mortgage pre-approval can show you how much you might be able to borrow, and it can help you set the price range you should start shopping in. Pre-approvals also give sellers more confidence in your offers.
Shop around for mortgage rates: Mortgage rates vary widely, so it’s incredibly important you shop around for your loan. Once you get quotes from several lenders, be sure to compare the APR, origination fees, and closing costs. You can also look into buying mortgage points, which could lower your interest rate (for a fee).
Negotiate the home purchase details: You’ll then start the search for your dream home. Once you find a property you like, you’ll put in an offer and negotiate the details. If the seller accepts, you’ll move forward with your chosen mortgage lender.
Complete the full mortgage application: It’s now time to fill out your lender’s full mortgage application and provide any required financial documentation. This usually includes tax returns, W-2s, bank statements, and recent pay stubs.
Get approved by an underwriter: Your loan will next move into underwriting, which is when your lender verifies your information and makes sure you have the financial capabilities to repay the loan. This is the last big hurdle before closing on your loan.
Prepare for closing: You’ll eventually be assigned a closing date, which is when you’ll finalize the transaction and take ownership of the home. Before this date rolls around, make sure you’ve secured a home insurance policy. Your lender will require it before approving the loan.
Close on your mortgage: The last step is attending your closing appointment and signing the final paperwork. You’ll also pay your closing costs and down payment, and receive the keys to your new home.

Monthly payments for different mortgage amounts

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Frequently asked questions

How much income do I need to afford a $250,000 mortgage?

You want your monthly payment to be affordable so that you can still cover other expenses and meet your savings goals. One guideline you can follow is the 28% rule, which suggests you spend no more than 28% of your gross monthly income on housing expenses. Let’s use the earlier example that assumes a 30-year loan term and 6% APR, which results in a monthly payment of $1,498.88. Divide the monthly payment by 28% to find the ideal gross monthly income (1,498.88/0.28 = 5,353.14). Multiply the monthly income by 12 to estimate a yearly income of $64,237.68.

Can I afford a $250,000 mortgage on a $70,000 salary?

Using the 28% rule, you can calculate whether a $250,000 mortgage would be affordable. A $70,000 salary would give you a gross monthly income of roughly $5,833.33 ($70,000/12). Multiply your monthly income by 0.28 to find the monthly payment you could afford is $1,633.24. What is most affordable for you will depend on your financial situation — including credit cards, student loans, and personal savings goals — along with the interest rate and loan term you choose.

What is the down payment for a $250,000 mortgage?

It’s a good idea to put down 20% so that you can avoid paying for private mortgage insurance. A 20% down payment on a $250,000 home would be $50,000. How much you need to save will depend on your lender’s down payment requirements and the type of loan you’re applying for. For example, some mortgage programs may let you put down as little as 3% to 5% for a conventional mortgage, which would be $7,500 to $12,500.

Meet the expert:

Aly J. Yale

Aly J. Yale is a personal finance journalist with work featured in Forbes, Fox Business, The Motley Fool, Bankrate, The Balance, and more.

FAQs

How Much a $250,000 Mortgage Will Cost You Each Month? ›

Monthly payments for a $250,000 mortgage

Read On ›

How much is a 250k mortgage per month? ›

The average monthly mortgage payment on a $250K loan with a 30-year fixed term and an interest rate of 7% is about $1,663. Keep in mind that this monthly payment doesn't include additional mortgage fees such as property taxes and homeowners insurance.

Discover More Details ›

How much is a 250 000 mortgage per month? ›

How much are the repayments on a £250,000 mortgage? The average cost of a £250k mortgage right now is £1,320 per month which means you would pay back around £395,878 across the whole term. This is based on average interest rates at the time of writing (September 2024) being 4% and typical term lengths being 25 years.

What salary do you need for $250000 mortgage? ›

An annual income of about $76,000 should put you in the position to afford a $250,000 mortgage, assuming you have relatively little other debt. But exactly what amount you'll need to earn will depend on your interest rate, loan term, and debt level, among other factors.

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How much is a downpayment on 250 000? ›

In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.

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Is a 700 credit score good enough for a mortgage? ›

Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.

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Is $2,000 a month a good mortgage? ›

Mandy Phillips, a mortgage loan originator at Vista Home Loans, ran the numbers with the average property taxes and homeowners' insurance for California to find that buyers with a $2,000 budget could afford a $301,000 purchase price.

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How much income do I need for a 200k mortgage? ›

To comfortably afford a $200,000 house, you'll likely need an annual income between $50,000 to $65,000, depending on your specific financial situation and the terms of your mortgage. Remember, just because you can qualify for a loan doesn't mean you should stretch your budget to the maximum.

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How much would I pay a month for a 300k mortgage? ›

Monthly payments for a $300,000 mortgage

Annual percentage rate (APR)	Monthly payment (15-year)	Monthly payment (30-year)
6.50%	$2,613.32	$1,896.20
6.75%	$2,654.73	$1,945.79
7.00%	$2,696.48	$1,995.91
7.25%	$2,738.59	$2,046.53

5 more rows

What would my monthly payment be on a 200k mortgage? ›

With a fixed rate of 7%, a 30-year $200,000 mortgage will cost about $1,330 per month before additional fees, and a 15-year $200,000 mortgage at the same rate will cost closer to $1,800.

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Can I afford a 250k house on 50K salary? ›

You can generally afford a home for between $180,000 and $250,000 (perhaps nearly $300,000) on a $50K salary. But your specific home buying budget will depend on your credit score, debt-to-income ratio, and down payment size.

Read The Full Story ›

What credit score do I need to buy a $250000 house? ›

For a $250,000 home, you'll likely need a fair to good credit score: 740+: Best rates and terms. 680-739: Good rates, still very good affordability. 620-679: Higher rates, may require larger down payment or FHA loan.

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Can I afford a 300k house on a 70K salary? ›

If you make $70K a year, you can likely afford a new home between $290,000 and $310,000*. That translates to a monthly house payment between $2,000 and $2,500, which includes your monthly mortgage payment, taxes, and home insurance.

Get More Info Here ›

How much should I save up for a 250k house? ›

Putting down the standard 20% can help you avoid paying mortgage insurance and interest and could save you thousands of dollars. So you can expect to pay between $7,500 an $50,000 as a down payment on a $250,000 purchase. Keep in mind, besides the down payment amount, you will also have to factor in closing costs.

What is mortgage payment on 250 000? ›

The total cost of a mortgage depends on the loan term and the interest rate. For a $250,000 mortgage with a 30-year term and 7% interest rate, borrowers can expect a monthly mortgage payment around $1,663 a month. However, there are other mortgage costs to consider — both at closing and over the life of the loan.

What is a 20% down payment on a 200k house? ›

To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage.

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How much is a 30-year mortgage on 200K? ›

With a fixed rate of 7%, a 30-year $200,000 mortgage will cost about $1,330 per month before additional fees, and a 15-year $200,000 mortgage at the same rate will cost closer to $1,800.

How much is a 300k mortgage per month? ›

The monthly payment on a $300,000 mortgage depends on what interest rate you get and the term you choose. On a 30-year loan at a 7% rate, it would be $1,996 per month toward your principal and interest. Keep in mind that you also have to pay for expenses such as homeowners insurance and property taxes each month.

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How much is a 500k mortgage monthly? ›

The monthly cost of a $500,000 mortgage is $3,360.16, assuming a 30-year loan term and a 7.1% interest rate. Over the course of a year, you would pay $40,321.92 in combined principal and interest payments.

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How much is a 150k mortgage per month? ›

A $150,000 30-year mortgage with a 6% interest rate comes with about an $899 monthly payment. The exact costs will depend on your loan's term and other details.

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