A $300,000 mortgage at 5% over 25 years costs $1,753.77 a month and $226,131 in interest over the full term. At 6% the payment becomes $1,932.90.
What sets the payment
Three numbers drive a fixed-rate mortgage payment: the amount borrowed, the annual rate and the length of the loan. Property tax, insurance and fees come on top and are not included in the figures below.
The table shows the principal-and-interest payment for $300,000 across common rates and terms. Move along a row to see the effect of the term, down a column to see the effect of the rate.
Rate matters more than it looks
Going from 5% to 6% on a 25-year loan adds $2,150 a year to the payments. The difference is small in any one month and large over a decade.
The same rate over a different term changes the payment and the interest: 20 years costs $1,979.87 a month and $175,168 in interest, 30 years costs $1,610.46 a month and $279,767 in interest.
Check your own numbers
Enter your price, down payment, rate and term in the mortgage calculator to get the payment, the full amortization schedule and the effect of extra payments. The result is an estimate: your lender's quote is the figure that binds.
| Rate | 20 years | 25 years | 30 years |
|---|---|---|---|
| 4 % | $1,817.94 | $1,583.51 | $1,432.25 |
| 5 % | $1,979.87 | $1,753.77 | $1,610.46 |
| 6 % | $2,149.29 | $1,932.90 | $1,798.65 |
| 7 % | $2,325.90 | $2,120.34 | $1,995.91 |
FAQ
Does a longer term lower the cost of a mortgage?+
It lowers the monthly payment and raises the total interest: $1,610.46 a month over 30 years, but $279,767 in interest.
Are taxes and insurance included in these figures?+
No. They cover principal and interest only. Add property tax and insurance in the calculator to see the full monthly housing cost.