How Much Is a Mortgage on a $300K House?

The mortgage on a $300,000 house can range between $291,000 (with 3% down) and $240,000 (with 20% down). While the amount you borrow is primarily influenced by your down payment, the total mortgage cost (principal and interest) on a $300,000 is determined by various factors, including interest rates, lender fees, loan terms, and loan type. 

How much is a monthly payment on a $300K house?

Your mortgage payment is based on several factors, including your down payment amount, the interest rate, the length of your loan, and the type of loan you choose. Because of this, the monthly payment for a $300,000 house will be different from one borrower to the next. In general, a monthly mortgage payment on a $300,000 house is likely to fall somewhere between $1,000 and $3,000. The primary components that influence your total loan costs are your principal borrowing amount, interest, taxes, and insurance (PITI).

Let’s say you make a 20% down payment ($60,000) on a $300,000 home and use a 30-year fixed-rate conventional loan with an interest rate of 6.5% to cover the remaining balance. 

Here’s a breakdown of your monthly mortgage payment on a $300,000 house:

• Principal: Your borrowing amount (if you buy a $300,000 house with a 20% down payment, your mortgage principal would equal $240,000).
• Interest: The cost of borrowing the principal amount (a $240,000 mortgage with a 6.5% interest rate spread over 30 years would equal over $300,000 in interest).
• Taxes: The cost of owning real estate property, which varies by location and the property’s value (for instance, property taxes in King County, WA have an average tax rate of 0.77%).
• Insurance: The cost of homeowners insurance and, if applicable, mortgage insurance.

30-year fixed-rate mortgage

Below is an example of your estimated monthly payments for a 30-year fixed-rate mortgage on a $300,000 house with a 20% down payment. By the end of your 30-year loan term, you’ll have paid $306,109 in interest on top of your $240,000 principal, which comes to $546,109.

• Principal borrowing amount: $240,000
• Interest rate: 6.5%

*Table does not include APR, homeowners insurance, property tax, or HOA fees. These financial factors depend on multiple location-based variables. We used Zillow’s Amortization Calculator for the estimates.

15-year fixed-rate mortgage

Fifteen-year mortgages typically come with lower interest rates than 30-year mortgages. Below is an example of your estimated monthly payments for a 15-year fixed-rate mortgage on a $300,000 house with a 20% down payment. By the end of your 15-year loan term, you’ll have paid $110,692 in interest on top of your $240,000 principal, which comes to $350,692.

• Principal borrowing amount: $240,000
• Interest rate: 5.4%

*Table does not include APR, homeowners insurance, property tax, or HOA fees. These financial factors depend on multiple location-based variables. We used Zillow’s Amortization Calculator for the estimates.

Adjustable-rate mortgage

Here’s what your monthly payment may look like on a 15-year and 30-year loan with a principal borrowing amount of $240,000 and variable interest rate:

*Table does not include APR, homeowners insurance, property tax, or HOA fees. These financial factors depend on multiple location-based variables. We used Zillow’s Amortization Calculator for the estimates.

Keep in mind that mortgage loans also follow an amortization schedule. This means the interest you pay each month is recalculated based on your remaining principal balance. Initially, you’ll pay more interest. But as you make payments, you’ll pay less interest and more toward lowering your principal loan balance. Our Amortization Calculator can help you estimate your mortgage payments and potential fees based on different borrowing amounts and loan terms. 

What income do I need to afford a $300K house? 

To afford a $300K house, you would likely need a yearly income between $50,000 and $75,000. However, your ability to afford a $300K home will depend on much more than your income alone, as lenders will also evaluate your credit score and history, debt-to-income ratio (DTI), and consider your down payment amount when determining your borrowing power and ability to repay your home loan. 

A general rule of thumb is to keep your mortgage costs below 30% of your gross monthly income. That way, you have enough money leftover to cover other debts and needs. Let’s say you take out a mortgage on a $300K home. You put down 20% and get an interest rate of 6.5%. Including taxes and insurance, your monthly payments come to about $2,000. If your projected monthly mortgage payments are around $2,000, an ideal annual income would be $72,000. This would mean you have a gross monthly income of around $6,000, placing your mortgage cost within 30% of your income.

Can you afford a $300K mortgage? See how much you pre-qualify to borrow with us Zillow Home Loans* to estimate your home buying power.

*An equal housing lender. NMLS #10287