How Much a $250,000 Mortgage Will Cost You (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.

It’s important to note that 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 company, 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.

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

And here’s what an amortization schedule for a 15-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	$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

Total interest paid

Total principal paid

Remaining 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: Tally 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 HOA dues.
Review your credit report: Your credit will play a factor in what mortgage rate you qualify for, so have a clear picture of where you stand. If your report shows lots of debt or your score is low, you might want to take some time cleaning up your credit before applying for the loan.
Get pre-approved: A mortgage pre-approval can give you a good idea of how much you might be able to borrow, and it can be a good guideline for what 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 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 once all is said and done, you’ll be given the keys to your new home.

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Monthly payments for different mortgage amounts

How Much a $100,000 Mortgage Will Cost You

By Aly J. Yale

FAQs

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

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. It's important to note that these estimates only include principal and interest.

Read On ›

What would a 250K mortgage cost? ›

$250K Mortgage Term Length Example

If you secure a 7% fixed interest rate and a 30-year loan term, you'll pay about $348,772 in interest when all is said and done. Your monthly mortgage payment would amount to $1,663 (without insurance and property taxes).

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What salary do you need for a 250K mortgage? ›

If you follow the 2.5 times your income rule, you divide the cost of the home by 2.5 to determine how much money you need to earn annually to afford it. Based on this rule, you would need to earn $100,000 per year to comfortably purchase a $250,000 home.

How much is a downpayment on a 250 000 mortgage? ›

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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How to pay off a $250,000 mortgage in 5 years? ›

Increasing your monthly payments, making bi-weekly payments, and making extra principal payments can help accelerate mortgage payoff. Cutting expenses, increasing income, and using windfalls to make lump sum payments can help pay off the mortgage faster.

What size mortgage for $2,000 per month? ›

With $2,000 per month to spend on your mortgage payment, you are likely to qualify for a home with a purchase price between $250,000 to $300,000, said Matt Ward, a real estate agent in Nashville. Ward also points out that other financial factors will impact your home purchase budget.

Get More Info Here ›

What would a 200K mortgage cost per month? ›

As far as the simple math goes, a $200,000 home loan at a 7% interest rate on a 30-year term will give you a $1,330.60 monthly payment. That $200K monthly mortgage payment includes the principal and interest.

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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.

Keep Reading ›

Can I afford a 250k house on a 40k salary? ›

Quick Rule Of Thumb: Multiply Your Annual Salary By 2.5 or 3

The quickest way to work out how much house you can afford is to multiply your annual pre-tax salary by 2.5 or 3. If you want a conservative estimate, use 2.5. If you want a more aggressive estimate, use 3.

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How much house can I afford if I make $70,000 a year? ›

One rule of thumb is that the cost of your home should not exceed three times your income. On a salary of $70k, that would be $210,000. This is only one way to estimate your budget, however, and it assumes that you don't have a lot of other debts.

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How to get a 250k personal loan? ›

To borrow a large sum of money, you'll need an excellent credit score, a stable employment history, and proof that you have enough income to make your payments. Having a relationship with the bank or credit union you're seeking a loan from may help.

Discover More ›

How much is a $200 000 mortgage payment for 30 years? ›

On a $200,000, 30-year mortgage with a 6% fixed interest rate, your monthly payment would come out to $1,199 — not including taxes or insurance. But this can vary greatly depending on your insurance policy, loan type, down payment size, and other factors.

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Is $20000 good for a down payment on a house? ›

Aim for a down payment that's 20% or more of the total home price—that's $40,000 for a $200,000 house. This minimum is partially based on guidelines set by government-sponsored companies like Fannie Mae and Freddie Mac.

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What happens if I pay an extra $2000 a month on my mortgage? ›

The additional amount will reduce the principal on your mortgage, as well as the total amount of interest you will pay, and the number of payments.

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What happens if I pay an extra $1000 a month on my mortgage? ›

Throwing in an extra $500 or $1,000 every month won't necessarily help you pay off your mortgage more quickly. Unless you specify that the additional money you're paying is meant to be applied to your principal balance, the lender may use it to pay down interest for the next scheduled payment.

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What happens if I pay 3 extra mortgage payments a year? ›

Paying a little extra towards your mortgage can go a long way. Making your normal monthly payments will pay down, or amortize, your loan. However, if it fits within your budget, paying extra toward your principal can be a great way to lessen the time it takes to repay your loans and the amount of interest you'll pay.

Read The Full Story ›

What would a $40,000 mortgage payment be? ›

At the time of writing (April 2024) the average monthly repayments on a £40,000 mortgage are £234. This is based on current interest rates being around 5%, a typical mortgage term of 25 years, and opting for a capital repayment mortgage. Based on this, you would repay £70,151 by the end of your mortgage term.

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How much do you need to make to afford a $200000 mortgage? ›

That amounts to $15,600 annually on mortgage payments. Housing-affordability guidelines suggest spending no more than about one-third of your income on housing. So, by tripling the $15,600 annual total, you'll find that you'd need to earn at least $46,800 a year to afford the monthly payments on a $200,000 home.

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How much house can I afford for $1000 a month? ›

These days — with conventional mortgage rates running about 4% — a $1,000 monthly Principle & Interest (P&I) payment gets you a 30-year loan of about $210,000. Assuming a 10% downpayment, that's a $235,000 home.

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How much is a 300k mortgage per month? ›

On a $300,000 mortgage with a 6% APR, you'd pay $2,531.57 per month on a 15-year loan and $1,798.65 on a 30-year loan, not including escrow. Escrow costs vary depending on your home's location, insurer, and other details.