What is the mortgage payment on a $150 000 house?
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.
Monthly payments on a $150,000 mortgage
At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year $150,000 mortgage might total $998 a month, while a 15-year might cost $1,348 a month.
All things considered– and assuming that the home's current owner won't be paying concessions on your closing or origination fees– for this $150,000 loan example, you'd need approximately $13,150 in cash to close your loan without a hitch.
- Make a substantial down payment. ...
- Boost your monthly payments. ...
- Pay bi-weekly. ...
- Make lump-sum principal payments. ...
- Get help paying the mortgage.
At a 7% interest rate, a 30-year fixed $200K mortgage has a monthly payment amount of $1,331, while a 15-year fixed $200K mortgage at the same interest rate has a monthly payment amount of $1,798.
Annual Percentage Rate (APR) | Monthly payment (15 year) | Monthly payment (30 year) |
---|---|---|
6.75% | $884.91 | $648.60 |
7.00% | $898.83 | $665.30 |
7.25% | $912.86 | $682.18 |
7.50% | $927.01 | $699.21 |
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.
A $3,500 per month mortgage in the United States, based on our calculations, will put you in an above-average price range in many cities, or let you at least get a foot in the door in high cost of living areas. That price point is $550,000.
The interest rate on a loan directly affects the duration of a loan. Note: The interest rate is calculated using the hit and trial method. Therefore, it takes 30 years to complete the loan of $150,000 with $1,000 per monthly installment at a 0.585% monthly interest rate.
A good number to shoot for when saving for a house is 25% of the sale price to cover your down payment, closing costs and moving expenses. (This amount is separate from saving up 3–6 months of your typical living expenses in a fully-funded emergency fund—which I recommend you do first, before saving up for a home.)
What happens if I pay $500 extra a month on my mortgage?
Making extra payments of $500/month could save you $60,798 in interest over the life of the loan. You could own your house 13 years sooner than under your current payment. These calculations are tools for learning more about the mortgage process and are for educational/estimation purposes only.
When you pay extra on a mortgage, you're paying above and beyond the regular monthly installment. The money you send is meant to apply directly to the loan principal, not the interest. This allows you to pay down your loan sooner and save money on interest.
A 30-year, $150,000 mortgage at a 7% fixed interest rate will be about $998 per month (not including property taxes or mortgage interest), while a 15-year mortgage at the same rate would cost about $1,348 monthly.
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
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.
Until inflation slows and the Fed is able to start lowering the federal funds rate, mortgage rates are expected to remain elevated. Most major forecasts believe that mortgage rates will ultimately trend down this year. Fannie Mae researchers recently predicted that rates would reach 6.4% by the end of 2024.
Making additional principal payments will shorten the length of your mortgage term and allow you to build equity faster. Because your balance is being paid down faster, you'll have fewer total payments to make, in-turn leading to more savings.
Just making two extra mortgage payments a year can shave years off the life of the loan and save you tens of thousands of dollars; here's one strategy to get started.
For a £100k mortgage over 15 years, the monthly repayments will be higher than a longer-term mortgage because you're repaying the capital over a shorter period. At a hypothetical 5% interest rate, your monthly repayments would be about £790.
To determine how much you can afford using this rule, multiply your monthly gross income by 28%. For example, if you make $10,000 every month, multiply $10,000 by 0.28 to get $2,800. Using these figures, your monthly mortgage payment should be no more than $2,800.
How much income do I need for a 200K mortgage?
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. This estimate however, does not include the 20 percent down payment you would need: On a $200K home, that's $40,000 that needs to be paid in full, upfront.
Home sellers often prefer to work with buyers who make at least a 20% down payment. A bigger down payment is a strong signal that your finances are in order, so you may have an easier time getting a mortgage. This can give you an edge over other buyers, especially when the home is in a hot market.
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
According to the 28/36 rule, you should spend no more than 28% of your gross monthly income on housing and no more than 36% on all debts. Housing costs can include: Your monthly mortgage payment. Homeowners Insurance. Private mortgage insurance.
$1,400 per month qualifies to borrow a loan amount of $204,913; add your $20,000 down payment to this, and you can purchase a home of $224,913. Of course, you'll still need cash for reserves and to cover the loan's closing costs.
References
- https://themortgagereports.com/24603/how-to-buy-a-house-with-low-income-in-2017
- https://www.bungalowagent.com/blog/2020/11/30/what-kind-of-house-can-i-get-for-4000-per-month
- https://www.bankrate.com/real-estate/how-much-house-can-i-afford-80k-salary/
- https://stairsfinancial.com/blog/i-make-25k-a-year-can-i-buy-a-house
- https://www.money.co.uk/mortgages/should-you-get-an-interest-only-or-repayment-mortgage
- https://www.forbes.com/advisor/personal-loans/personal-loan-requirements/
- https://www.finder.com/mortgages/150000-mortgage
- https://www.quickenloans.com/learn/how-much-house-can-i-afford
- https://www.forbes.com/advisor/personal-loans/how-do-bank-loans-work/
- https://www.credible.com/personal-loan/chase-bank-personal-loan-alternatives
- https://www.bankrate.com/real-estate/new-house-calculator/
- https://www.bankrate.com/mortgages/interest-only-mortgage-payment-calculator/
- https://www.forbes.com/advisor/personal-loans/high-interest-loans/
- https://www.ascotmortgages.co.uk/mortgage-repayment-calculator/100000-mortgage/
- https://orchard.com/blog/posts/pay-off-your-mortgage-in-five-years
- https://www.myfico.com/credit-education/credit-scores/fico-score-versions
- https://www.rocketmortgage.com/learn/mortgage-payment-on-200k
- https://wallethub.com/answers/pl/10000-personal-loan-fair-credit-1000485-2140782912/
- https://themortgagereports.com/61853/30-year-mortgage-rates-chart
- https://www.bankrate.com/loans/personal-loans/average-credit-score-for-personal-loans/
- https://wallethub.com/answers/pl/monthly-payment-on-8000-personal-loan-1000450-2140762720/
- https://www.bankrate.com/finance/credit-cards/what-to-do-after-card-apr-increase/
- https://money.com/mortgage-calculator/
- https://www.cnbc.com/select/easiest-personal-loans/
- https://www.standardbank.co.za/southafrica/personal/learn/what-to-know-about-applying-for-a-personal-loan
- https://www.bankrate.com/loans/personal-loans/what-to-do-if-you-are-denied-a-loan/
- https://www.calculatorsoup.com/calculators/financial/apr-calculator-basic.php
- https://www.ramseysolutions.com/real-estate/how-much-money-do-i-need-to-buy-a-house
- https://www.bankrate.com/mortgages/prepaying-your-mortgage/
- https://www.marketwatch.com/guides/personal-loans/sofi-personal-loans/
- https://www.cnbc.com/select/mortgage-affordability/
- https://www.rocketmortgage.com/learn/what-credit-score-is-needed-to-buy-a-house
- https://www.lendingtree.com/personal/personal-loan-calculator/
- https://wallethub.com/best-banks-for-personal-loans
- https://www.nerdwallet.com/article/loans/personal-loans/credit-score-need-get-personal-loan
- https://stairsfinancial.com/blog/how-much-house-can-i-afford-on-40k-a-year
- https://www.upstart.com/learn/what-is-a-small-loan/
- https://www.investopedia.com/terms/p/passbook-loan.asp
- https://www.usatoday.com/story/money/personalfinance/2024/03/05/banks-turning-borrowers-down-for-loans/72837780007/
- https://www.halifax.co.uk/mortgages/existing-customers/mortgage-support/interest-only-payments.html
- https://www.investopedia.com/calculate-principal-and-interest-5211981
- https://www.chase.com/personal/mortgage/education/financing-a-home/what-percentage-income-towards-mortgage
- https://www.bankrate.com/loans/personal-loans/how-to-get-personal-loan/
- https://www.credible.com/mortgage/200000-mortgage
- https://www.cnbc.com/select/what-is-an-interest-only-mortgage/
- https://www.investopedia.com/articles/basics/07/financing-options.asp
- https://www.zillow.com/mortgage-calculator/house-affordability/
- https://www.quora.com/What-are-the-disadvantages-of-high-interest-rates
- https://www.cnbc.com/select/what-is-the-28-36-rule-for-buying-a-home/
- https://www.sofi.com/learn/content/monthly-cost-200000-mortgage/
- https://www.onemainfinancial.com/resources/loan-basics/5000-personal-loan
- https://www.bankofbarodakenya.co.ke/personal-banking/retail-loans/baroda-personal-loans
- https://www.mikevestil.com/entrepreneurship/financing/disadvantages-of-bank-loans/
- https://money.usnews.com/loans/personal-loans/articles/what-credit-score-do-you-need-for-a-personal-loan
- https://www.athena.com.au/learn/principal-and-interest-vs-interest-only
- https://www.quickenloans.com/learn/apr
- https://lo.primelending.com/pclick/calculators/paying-extra-towards-mortgage
- https://www.investopedia.com/articles/managing-wealth/042516/how-interestonly-mortgages-work.asp
- https://www.sofi.com/learn/content/i-make-36k-a-year-how-much-house-can-i-afford/
- https://themortgagereports.com/76824/what-is-a-good-mortgage-rate-today
- https://www.homelight.com/how-much-house-can-i-afford
- https://www.rocketmoney.com/learn/debt-and-credit/how-to-calculate-apr
- https://money.usnews.com/loans/personal-loans/articles/can-i-borrow-money-with-a-500-credit-score
- https://wallethub.com/answers/pl/how-much-can-you-borrow-with-excellent-credit-2140824598/
- https://realestate.usnews.com/real-estate/articles/what-kind-of-house-can-you-buy-for-3-500-a-month
- https://www.transunion.com/article/how-much-house-can-i-afford
- https://www.experian.com/blogs/ask-experian/types-of-loans-to-avoid/
- https://wallethub.com/answers/pl/6000-personal-loan-monthly-payment-1000450-2140762717/
- https://wallethub.com/answers/pl/30000-personal-loan-monthly-payment-1000450-2140762727/
- https://nlcloans.com/trd_post/how-much-cash-is-needed-when-buying-a-home/
- https://www.fool.com/the-ascent/personal-loans/articles/how-much-is-the-monthly-payment-on-a-10000-personal-loan/
- https://michaelbluejay.com/house/howmuchhome.html
- https://money.com/lendingtree-personal-loans-review/
- https://www.bankrate.com/real-estate/income-needed-for-200k-home/
- https://personalfinanceblogs.com/is-36000-a-good-salary-for-a-single-person/
- https://www.rocketloans.com/learn/personal-loan-basics/i-need-a-loan-but-keep-getting-declined
- https://www.investopedia.com/why-would-personal-loan-declined-7972355
- https://smartasset.com/credit-cards/what-is-a-good-apr
- https://wallethub.com/answers/pl/is-a-30-apr-good-1000431-2140750786/
- https://wallethub.com/answers/pl/how-much-can-i-borrow-with-a-580-credit-score-1000508-2140806875/
- https://www.americanfinancing.net/saving-money/extra-mortgage-principal-payments
- https://www.nab.com.au/personal/life-moments/home-property/interest-only-principal-interest
- https://www.equifax.com/personal/education/credit/report/articles/-/learn/understanding-credit-good-debt-vs-bad-debt/
- https://www.lendingtree.com/personal/what-credit-score-do-you-need-for-personal-loan/
- https://www.fool.com/the-ascent/personal-loans/articles/what-are-the-monthly-payments-on-a-10000-personal-loan/
- https://themortgagereports.com/22502/how-to-buy-a-home-50000-per-year-income
- https://www.nerdwallet.com/article/loans/personal-loans/the-best-ways-to-borrow-money
- https://www.citizensbank.com/learning/what-is-apr.aspx
- https://www.homeloanexperts.com.au/refinance-home-loan/refinance-interest-only-loan/
- https://www.bankrate.com/loans/personal-loans/pros-cons-of-personal-loans/
- https://www.credible.com/mortgage/150000-mortgage
- https://money.usnews.com/loans/personal-loans/articles/how-to-get-a-10-000-personal-loan
- https://www.bankrate.com/loans/personal-loans/private-lenders-vs-banks/
- https://www.rocketmoney.com/learn/loans/simple-interest-vs-compound-interest
- https://www.cnbc.com/select/what-is-apr/
- https://www.cbsnews.com/news/how-much-house-can-i-afford-on-a-50000-salary/
- https://wallethub.com/personal-loans/quick
- https://www.53.com/content/fifth-third/en/financial-insights/personal/financial-education/pros-cons-of-rising-interest-rates.html
- https://www.investopedia.com/what-are-the-eligibility-requirements-for-a-personal-loan-7692887
- https://www.hdfcbank.com/personal/borrow/popular-loans/personal-loan
- https://homework.study.com/explanation/why-does-it-take-30-years-to-pay-off-a-150-000-loan-even-though-you-pay-1-000-a-month.html
- https://www.chase.com/personal/mortgage/education/financing-a-home/what-is-interest-only-mortgage
- https://study.com/academy/lesson/three-cs-of-credit-character-capital-capacity.html
- https://www.lendingtree.com/personal/10000-dollar-loans/
- https://www.rocketmortgage.com/learn/how-much-down-payment-for-a-house
- https://moneysmart.gov.au/home-loans/interest-only-home-loans
- https://www.indeed.com/career-advice/career-development/how-to-calculate-apr
- https://www.credible.com/personal-loan/high-risk-loans
- https://www.tescobank.com/loans/loan-calculator/
- https://www.credible.com/personal-loan/30k-loan
- https://www.investopedia.com/terms/u/unsecuredloan.asp
- https://www.credible.com/personal-loan/1000-loan
- https://themortgagereports.com/70827/70k-per-year-salary-how-much-house-can-i-afford
- https://www.cabotwealth.com/daily/personal-finance/extra-mortgage-payments-save-thousands
- https://www.investopedia.com/terms/i/interestonlymortgage.asp
- https://www.westpac.com.au/personal-banking/home-loans/interest-only/
- https://www.caranddriver.com/auto-loans/a41855998/0-apr-car-loan/
- https://www.hsh.com/how-much-house-can-i-afford.html
- https://www.investopedia.com/ask/answers/100314/what-difference-between-interest-rate-and-annual-percentage-rate-apr.asp
- https://www.lendingtree.com/home/mortgage/40-year-mortgage/
- https://www.businessinsider.com/best-mortgage-refinance-rates-today-saturday-27-2024-4
- https://www.fool.com/the-ascent/personal-loans/articles/how-much-is-the-monthly-payment-on-a-50000-personal-loan/
- https://money.asda.com/personal-loans/loan-amounts/10-000-loans/
- https://www.bankrate.com/loans/personal-loans/how-long-does-it-take-to-get-a-personal-loan/
- https://www.sofi.com/learn/content/150000-mortgage-payment/
- https://www.usbank.com/home-loans/mortgage/first-time-home-buyers/credit-score-for-mortgage.html
- https://www.legalandgeneral.com/retirement/equity-release/guides/what-if-you-cant-pay-off-your-interest-only-mortgage/
- https://www.chegg.com/homework-help/questions-and-answers/19-apr-30-year-200-000-loan-45-points-q64846519
- https://www.credible.com/mortgage/100000-mortgage
- https://www.moneyhelper.org.uk/en/homes/buying-a-home/ways-of-repaying-an-interest-only-mortgage