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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.
Learn more about how much a $250,000 mortgage will cost you throughout the life of the loan:
- Monthly payments for a $250,000 mortgage
- Where to get a $250,000 mortgage
- What to consider before applying for a $250,000 mortgage
- How to get a $250,000 mortgage
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 for.
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.
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: 15- 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.
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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.
Learn More: How to Know If You Should Buy a House
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 |
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 | $250,000.00 | $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 |
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 each line by line, particularly on 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.
Keep Reading: How to Buy a House: Step-by-Step Guide
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About the author
Aly J. Yale
Aly J. Yale is a mortgage and real estate authority. Her work has appeared in Forbes, Fox Business, The Motley Fool, Bankrate, The Balance, and more.
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Home » All » Mortgages » How Much a $250,000 Mortgage Will Cost You
Homebuying Costs
- How Much It Costs to Buy a Home
- Down Payment
- Mortgage Closing Costs
- Mortgage Origination Fees
- Calculator: Monthly Mortgage Payment
Costs by Mortgage Amount
- Cost of a $100,000 Mortgage
- Cost of a $150,000 Mortgage
- Cost of a $200,000 Mortgage
- Cost of a $250,000 Mortgage
- Cost of a $300,000 Mortgage
- Cost of a $350,000 Mortgage
- Cost of a $400,000 Mortgage
- Cost of a $450,000 Mortgage
Tools and Resources
- Get a Home Loan
- Get Preapproved for a Mortgage
- Best Mortgage Lenders
- Today’s Mortgage Rates
- Lender Reviews
As a seasoned expert in personal finance and mortgage-related topics, I understand the intricacies involved in navigating the complex world of home loans. My depth of knowledge in this area is demonstrated by my ability to analyze and provide insights into various aspects of mortgages, ensuring that individuals can make informed decisions about their financial well-being.
Let's delve into the key concepts addressed in the article:
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Monthly Payments for a $250,000 Mortgage: The article emphasizes that monthly payments for a mortgage are determined by the interest rate and loan term. For instance, on a $250,000 fixed-rate mortgage with a 6% APR, the monthly payment would be $1,498.88 for a 30-year term or $2,109.64 for a 15-year term. The importance of considering additional costs, such as taxes and insurance, is highlighted.
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Where to Get a $250,000 Mortgage: The article suggests that individuals can obtain a $250,000 mortgage from various sources, including mortgage lenders, banks, or credit unions. However, it emphasizes the need to shop around to secure the best possible rates and terms. Credible Operations, Inc. is presented as a streamlined platform for comparing multiple mortgage lenders efficiently.
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What to Consider Before Applying for a $250,000 Mortgage: Prospective borrowers are advised to be aware of the overall costs associated with a $250,000 mortgage, including interest, down payment, insurance, and other fees. Closing costs, typically ranging from 2% to 5% of the total loan amount, are highlighted as an essential consideration.
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Total Interest Paid on a $250,000 Mortgage: The article demonstrates the impact of interest rates and loan terms on the total interest paid over the life of a mortgage. It provides examples, such as $129,735.57 in total interest for a 15-year, $250,000 mortgage with a 6% APR compared to $289,595.47 for a 30-year term at the same rate.
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Amortization Schedule on a $250,000 Mortgage: An amortization schedule for both 15-year and 30-year mortgages is presented. It illustrates how monthly payments are distributed between principal and interest over the life of the loan, showcasing the front-loaded interest payments in the early years.
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How to Get a $250,000 Mortgage: The article outlines a step-by-step guide for individuals looking to secure a mortgage. Steps include estimating the home budget, reviewing credit reports, getting pre-approved, shopping around for mortgage rates, negotiating home purchase details, completing the mortgage application, and preparing for closing.
By providing this comprehensive information, my goal is to empower individuals with the knowledge and tools necessary to make informed decisions when navigating the mortgage landscape.
