So you’re considering applying for a $50k mortgage but want to know what exactly it will cost you.
There are many aspects to consider when applying for a $50,000 mortgage. This includes the down payment, interest rate, monthly payments, and mortgage length.
A 15-year $50k mortgage could save you a considerable amount of money compared to a 30-year mortgage when taking interest into account.
Below you will find how much you could expect to pay each month with various interest rates. On top of that, you will also find the different down payment options explained in detail so you can choose the best way to go about getting a $50,000 mortgage.
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Monthly Payment on a $50,000 30 Year Mortgage
Here is how much you will pay each month with a $50k 30 year mortgage and its associated annual percentage rate (APR).
| Annual Percentage Rate (APR) | 30 Year Monthly Payment |
|---|---|
| 2.50% | $197.56 |
| 2.75% | $204.12 |
| 3.00% | $210.80 |
| 3.25% | $217.60 |
| 3.50% | $224.52 |
| 3.75% | $231.56 |
| 4.00% | $238.71 |
| 4.25% | $245.97 |
| 4.50% | $253.34 |
| 4.75% | $260.82 |
| 5.00% | $268.41 |
| 5.25% | $276.10 |
| 5.50% | $283.89 |
| 5.75% | $291.79 |
| 6.00% | $299.78 |
| 6.25% | $307.86 |
| 6.50% | $316.03 |
| 6.75% | $324.30 |
| 7.00% | $332.65 |
Monthly Payment on a $50,000 15 Year Mortgage
Below you will find the monthly payment amount for a $50k 15 year mortgage and its corresponding annual percentage rate.
| Annual Percentage Rate (APR) | 15 Year Monthly Payment |
|---|---|
| 2.50% | $333.39 |
| 2.75% | $339.31 |
| 3.00% | $345.29 |
| 3.25% | $351.33 |
| 3.50% | $357.44 |
| 3.75% | $363.61 |
| 4.00% | $369.84 |
| 4.25% | $376.14 |
| 4.50% | $382.50 |
| 4.75% | $388.92 |
| 5.00% | $395.40 |
| 5.25% | $401.94 |
| 5.50% | $408.54 |
| 5.75% | $415.21 |
| 6.00% | $421.93 |
| 6.25% | $428.71 |
| 6.50% | $435.55 |
| 6.75% | $442.45 |
| 7.00% | $449.41 |
What is the Down Payment For a $50,000 House?
The down payment amount for a $50,000 house will depend entirely on what type of loan you choose.
1. Conventional Loan
With a conventional loan, you can usually expect to put at least 20% down initially. So a $50,000 mortgage would result in a down payment of $10,000.
It is possible to get a conventional loan with less than 20% down. However, expect to purchase private mortgage insurance (PMI). Private mortgage insurance is a way of protecting the lender against any losses if you end up defaulting on your mortgage.
2. FHA Loan
An FHA loan only requires a down payment of at least 3.5% and is insured by the Federal Housing Administration (FHA). A $50,000 mortgage would mean you would only have a down payment of $1,750.
There are requirements to getting an FHA loan, such as having a minimum FICO score of 580. You can get an FHA loan with a FICO score of 500. However, with that score, you would have to put at least 10% down.
Along with the credit score requirement, FHA loans will also require you to pay a mortgage insurance premium both upfront at closing and annually until you have at least 20% equity in your property.
3. VA Loan
VA loans do not require a down payment and are backed by the Department of Veteran Affairs. They are mortgages which members of the U.S. military and their families can take advantage of. Other perks of VA loans include lower closing costs and no mortgage insurance.
4. USDA Loan
USDA loans are loans that help low- to moderate-income homebuyers purchase homes in areas in rural areas. There are income requirements that you will need to meet to qualify. But if you do get a USDA loan, there is no required down payment.
Amortization Schedule For a $50k Mortgage
Amortization for a mortgage shows the process of paying both the interest and principal off on a mortgage. Initially, you will pay mostly interest on your $50k mortgage and eventually pay mostly principal.
An amortization schedule shows each payment towards a mortgage until the predetermined term ends.
$50k Mortgage 30 Year Amortization Schedule
At 5% APR this is what a $50k 30-year mortgage amortization schedule looks like:
| Years | Starting Balance | Monthly Payment | Total Principal Paid | Total Interest Paid | Remaining Balance |
|---|---|---|---|---|---|
| 1 | $50,000.00 | $268.41 | $737.68 | $2,483.25 | $49,262.32 |
| 2 | $49,262.32 | $268.41 | $775.42 | $2,445.51 | $48,486.89 |
| 3 | $48,486.89 | $268.41 | $815.10 | $2,405.83 | $47,671.80 |
| 4 | $47,671.80 | $268.41 | $856.80 | $2,364.13 | $46,815.00 |
| 5 | $46,815.00 | $268.41 | $900.63 | $2,320.30 | $45,914.37 |
| 6 | $45,914.37 | $268.41 | $946.71 | $2,274.22 | $44,967.65 |
| 7 | $44,967.65 | $268.41 | $995.15 | $2,225.78 | $43,972.51 |
| 8 | $43,972.51 | $268.41 | $1,046.06 | $2,174.87 | $42,926.45 |
| 9 | $42,926.45 | $268.41 | $1,099.58 | $2,121.35 | $41,826.87 |
| 10 | $41,826.87 | $268.41 | $1,155.84 | $2,065.09 | $40,671.03 |
| 11 | $40,671.03 | $268.41 | $1,214.97 | $2,005.96 | $39,456.06 |
| 12 | $39,456.06 | $268.41 | $1,277.13 | $1,943.80 | $38,178.93 |
| 13 | $38,178.93 | $268.41 | $1,342.47 | $1,878.46 | $36,836.46 |
| 14 | $36,836.46 | $268.41 | $1,411.15 | $1,809.78 | $35,425.31 |
| 15 | $35,425.31 | $268.41 | $1,483.35 | $1,737.58 | $33,941.95 |
| 16 | $33,941.95 | $268.41 | $1,559.24 | $1,661.69 | $32,382.71 |
| 17 | $32,382.71 | $268.41 | $1,639.02 | $1,581.91 | $30,743.69 |
| 18 | $30,743.69 | $268.41 | $1,722.87 | $1,498.06 | $29,020.82 |
| 19 | $29,020.82 | $268.41 | $1,811.02 | $1,409.91 | $27,209.81 |
| 20 | $27,209.81 | $268.41 | $1,903.67 | $1,317.26 | $25,306.13 |
| 21 | $25,306.13 | $268.41 | $2,001.07 | $1,219.86 | $23,305.07 |
| 22 | $23,305.07 | $268.41 | $2,103.45 | $1,117.48 | $21,201.62 |
| 23 | $21,201.62 | $268.41 | $2,211.06 | $1,009.87 | $18,990.56 |
| 24 | $18,990.56 | $268.41 | $2,324.18 | $896.75 | $16,666.37 |
| 25 | $16,666.37 | $268.41 | $2,443.09 | $777.84 | $14,223.28 |
| 26 | $14,223.28 | $268.41 | $2,568.09 | $652.84 | $11,655.19 |
| 27 | $11,655.19 | $268.41 | $2,699.48 | $521.45 | $8,955.71 |
| 28 | $8,955.71 | $268.41 | $2,837.59 | $383.34 | $6,118.13 |
| 29 | $6,118.13 | $268.41 | $2,982.76 | $238.17 | $3,135.37 |
| 30 | $3,135.37 | $268.41 | $3,135.37 | $85.56 | $0.00 |
$50k Mortgage 15 Year Amortization Schedule
At 5% APR this is an example of what a $50k 15-year mortgage amortization schedule looks like:
| Years | Starting Balance | Monthly Payment | Total Principal Paid | Total Interest Paid | Remaining Balance |
|---|---|---|---|---|---|
| 1 | $50,000.00 | $395.40 | $2,296.93 | $2,447.84 | $47,703.07 |
| 2 | $47,703.07 | $395.40 | $2,414.44 | $2,330.32 | $45,288.63 |
| 3 | $45,288.63 | $395.40 | $2,537.97 | $2,206.79 | $42,750.67 |
| 4 | $42,750.67 | $395.40 | $2,667.82 | $2,076.95 | $40,082.85 |
| 5 | $40,082.85 | $395.40 | $2,804.31 | $1,940.46 | $37,278.55 |
| 6 | $37,278.55 | $395.40 | $2,947.78 | $1,796.98 | $34,330.77 |
| 7 | $34,330.77 | $395.40 | $3,098.59 | $1,646.17 | $31,232.17 |
| 8 | $31,232.17 | $395.40 | $3,257.12 | $1,487.64 | $27,975.05 |
| 9 | $27,975.05 | $395.40 | $3,423.76 | $1,321.00 | $24,551.29 |
| 10 | $24,551.29 | $395.40 | $3,598.93 | $1,145.83 | $20,952.36 |
| 11 | $20,952.36 | $395.40 | $3,783.06 | $961.70 | $17,169.30 |
| 12 | $17,169.30 | $395.40 | $3,976.61 | $768.16 | $13,192.69 |
| 13 | $13,192.69 | $395.40 | $4,180.06 | $564.70 | $9,012.63 |
| 14 | $9,012.63 | $395.40 | $4,393.92 | $350.84 | $4,618.72 |
| 15 | $4,618.72 | $395.40 | $4,618.72 | $126.04 | $0.00 |
Considerations Before Applying For a $50k Mortgage
There are a few things to consider before applying for a $50k mortgage.
1. Down Payment For a Mortgage
One of the first considerations is the down payment. The larger the down payment you make, the higher likelihood you will receive a lower interest rate.
There are many different types of loans that have different requirements for how much money needs to be put down initially.
Some have requirements of as little as 0% down, some require 3.5%, and some require 20% or greater.
2. Principal vs. Interest
Two terms get brought up a lot when talking about mortgages. These terms are principal and interest.
The principal is money that is applied directly to the balance of your loan. Interest is the cost of borrowing the money loaned.
A higher interest rate means you would pay more for your $50,000 mortgage versus someone who got the loan for a lower interest rate.
3. Annual Percentage Rate (APR)
The annual percentage rate otherwise referred to as the APR, is the annual cost of a loan. In this case, the loan would be a $50,000 mortgage.
The APR includes not only the interest rate. But also other fees such as legal fees, mortgage insurance, transaction, or some closing costs.
When you receive a $50k mortgage your annual percentage rate will change depending on factors such as your credit score, debt-to-income ratio, down payment, and length of the loan.
4. Form an LLC for Real Estate
If you are planning on purchasing real estate, consider starting an LLC for your real estate investments.
Not only will an LLC for your real estate protect your assets, but it can also result in tax benefits which could save you a ton of money each year.
Starting an LLC is also incredibly simple and easy to do. If you are thinking about getting a $50,000 mortgage for your real estate, forming an LLC might be the right decision. It will most likely end up saving you both time and money.
Conclusion
Whether you are trying to get a $50,000 mortgage so you can purchase your first home or investment property, it’s important to know the numbers behind your $50k mortgage.
The principal, interest, and annual percentage rate (APR) are all terms used quite frequently when you try to get a mortgage.
Initially, they might seem like complex terms. But when you break it down, it’s quite simple. Feel free to bookmark or save this article for later if you need any more help understanding the costs of a $50k mortgage.
Whether this is your first time applying for a mortgage or you are a seasoned real estate investor, it’s always helpful to understand this information.
If you enjoyed reading about the costs of a $50k mortgage, consider checking out our other informative articles below!
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