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Taking out a mortgage comes with many costs — some upfront and some paid over long lengths of time. On a $300,000 mortgage, those costs might surprise you.
In fact, on a traditional 15- or 30-year loan of this size you might pay anywhere from $72,000 to $155,000 just in interest.
Learn more about how much a $300,000 mortgage will cost you in the long run:
- Monthly payments for a $300,000 mortgage
- Where to get a $300,000 mortgage
- What to consider before applying for a $300,000 mortgage
- How to get a $300,000 mortgage
Monthly payments for a $300,000 mortgage
Monthly mortgage payments always contain two things: principal and interest. In some cases, they might include other costs as well.
Here’s what typically makes up a mortgage payment:
- Principal: This money is applied straight to your loan balance.
- Interest: The cost of borrowing the money. How much you’ll pay is indicated by your interest rate.
- Escrow costs: If you opt to use an escrow account (or your lender requires it), you’ll also have your property taxes, mortgage insurance, and homeowners insurance rolled into your monthly mortgage payment, too.
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.
Here’s a quick look at what the monthly payment (principal and interest) would be for a $300,000 mortgage with varying interest rates:
Annual Percentage Rate (APR) | Monthly payment (15 year) | Monthly payment (30 year) |
|---|---|---|
6.00% | $2,531.57 | $1,798.65 |
6.25% | $2,572.27 | $1,896.20 |
6.50% | $2,613.32 | $1,896.20 |
6.75% | $2,654.73 | $1,945.79 |
7.00% | $2,696.48 | $1,995.91 |
7.25% | $2,738.59 | $2,046.53 |
7.50% | $2,781.04 | $2,097.64 |
7.75% | $2,823.83 | $2,149.24 |
8.00% | $2,866.96 | $2,201.29 |
Check out: 20- vs 30-Year Mortgage: Is an Unusual Option Right for You?
Where to get a $300,000 mortgage
To get a $300,000 home loan, you’ll want to get quotes from at least a few different lenders. Though this can be done by reaching out to each mortgage company directly, you can also compare lender options with an online marketplace like Credible.
Once you receive your quotes, you’ll want to compare them line by line. You should look at the interest rate, total costs on closing day, any origination fees, mortgage points you’re being charged, and more.
After you determine the best offer, you can move forward with that lender’s application and submit any required documentation.
Credible makes the process of comparing lender options easier — and it only takes a few minutes.
Credible makes finding a mortgage easy
- Streamlined form: It only takes 3 minutes to see loan options that might work for you. You’ll be able to compare multiple lender options — all in one place.
- Compare options: Compare loan options from multiple lenders without affecting your credit.
- Get matched with a mortgage lender: Once you’ve made a selection, you’ll be connected with the lender of your choice.
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Learn More: How to Know If You Should Buy a House
What to consider before applying for a $300,000 mortgage
Before taking out a mortgage of this size (or any home loan for that matter), you’ll want to have a good handle on the total costs of the loan. That includes your closing costs, the down payment, the total interest you’ll pay, and the monthly payment the loan comes with.
Total interest paid on a $300,000 mortgage
You’ll always pay more interest on longer-term loans. So, for example, a 30-year loan would cost more in the long haul than a 15-year one would (though the 30-year loan would have a smaller monthly payment).
With a 30-year, $300,000 loan at a 6% interest rate, you’d pay $347,514.57 in total interest, and on a 15-year loan with the same rate, it’d be $155,682.69 — a whopping $191,831.88 less.
Use the below calculator to see how much interest you’ll pay, as well as what your home will cost you every month.
Enter your loan information to calculate how much you could pay
?Enter the total amount borrowed $
?Enter your annual interest rate %
or
?Enter the amount of time you have to repay your loan years
Total Payment
$Total Interest
$Monthly Payment
$With a $ home loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the mortgage.
Amortization schedule on a $300,000 mortgage
An amortization schedule breaks down how much you’ll pay in interest and principal for every year of your loan’s term.
At the start of your loan, the bulk of your monthly payments will go toward interest, but as you get further into the loan term, more will be applied to the principal balance.
Here’s what an amortization schedule looks like for a 30-year, $300,000 mortgage with a 6% APR:
| Year | Beginning balance | Monthly payment | Total interest paid | Total principal paid | Remaining balance |
|---|---|---|---|---|---|
| 1 | $300,000.00 | $1,798.65 | $17,899.78 | $3,684.04 | $296,315.96 |
| 2 | $296,315.96 | $1,798.65 | $17,672.56 | $3,911.26 | $292,404.71 |
| 3 | $292,404.71 | $1,798.65 | $17,431.32 | $4,152.50 | $288,252.21 |
| 4 | $288,252.21 | $1,798.65 | $17,175.21 | $4,408.61 | $283,843.60 |
| 5 | $283,843.60 | $1,798.65 | $16,903.29 | $4,680.53 | $279,163.07 |
| 6 | $279,163.07 | $1,798.65 | $16,614.61 | $4,969.21 | $274,193.86 |
| 7 | $274,193.86 | $1,798.65 | $16,308.12 | $5,275.70 | $268,918.16 |
| 8 | $268,918.16 | $1,798.65 | $15,982.72 | $5,601.10 | $263,317.06 |
| 9 | $263,317.06 | $1,798.65 | $15,637.26 | $5,946.56 | $257,370.50 |
| 10 | $257,370.50 | $1,798.65 | $15,270.49 | $6,313.33 | $251,057.17 |
| 11 | $251,057.17 | $1,798.65 | $14,881.10 | $6,702.72 | $244,354.45 |
| 12 | $244,354.45 | $1,798.65 | $14,467.69 | $7,116.13 | $237,238.32 |
| 13 | $237,238.32 | $1,798.65 | $14,028.78 | $7,555.04 | $229,683.28 |
| 14 | $229,683.28 | $1,798.65 | $13,562.80 | $8,021.02 | $221,662.27 |
| 15 | $221,662.27 | $1,798.65 | $13,068.08 | $8,515.74 | $213,146.53 |
| 16 | $213,146.53 | $1,798.65 | $12,542.85 | $9,040.97 | $204,105.57 |
| 17 | $204,105.57 | $1,798.65 | $11,985.22 | $9,598.59 | $194,506.97 |
| 18 | $194,506.97 | $1,798.65 | $11,393.20 | $10,190.61 | $184,316.36 |
| 19 | $184,316.36 | $1,798.65 | $10,764.67 | $10,819.15 | $173,497.21 |
| 20 | $173,497.21 | $1,798.65 | $10,097.37 | $11,486.45 | $162,010.76 |
| 21 | $162,010.76 | $1,798.65 | $9,388.91 | $12,194.91 | $149,815.85 |
| 22 | $149,815.85 | $1,798.65 | $8,636.75 | $12,947.06 | $136,868.78 |
| 23 | $136,868.78 | $1,798.65 | $7,838.21 | $13,745.61 | $123,123.17 |
| 24 | $123,123.17 | $1,798.65 | $6,990.41 | $14,593.41 | $108,529.76 |
| 25 | $108,529.76 | $1,798.65 | $6,090.32 | $15,493.50 | $93,036.26 |
| 26 | $93,036.26 | $1,798.65 | $5,134.71 | $16,449.11 | $76,587.16 |
| 27 | $76,587.16 | $1,798.65 | $4,120.17 | $17,463.65 | $59,123.51 |
| 28 | $59,123.51 | $1,798.65 | $3,043.05 | $18,540.77 | $40,582.73 |
| 29 | $40,582.73 | $1,798.65 | $1,899.49 | $19,684.32 | $20,898.41 |
| 30 | $20,898.41 | $1,798.65 | $685.41 | $20,898.41 | $0.00 |
Here’s what an amortization schedule looks like for a 15-year, $300,000 mortgage with a 6% APR:
| Year | Beginning balance | Monthly payment | Total interest paid | Total principal paid | Remaining balance |
|---|---|---|---|---|---|
| 1 | $300,000.00 | $2,531.57 | $17,653.84 | $12,725.00 | $287,275.00 |
| 2 | $287,275.00 | $2,531.57 | $16,868.99 | $13,509.85 | $273,765.15 |
| 3 | $273,765.15 | $2,531.57 | $16,035.74 | $14,343.11 | $259,422.04 |
| 4 | $259,422.04 | $2,531.57 | $15,151.08 | $15,227.76 | $244,194.27 |
| 5 | $244,194.27 | $2,531.57 | $14,211.87 | $16,166.98 | $228,027.30 |
| 6 | $228,027.30 | $2,531.57 | $13,214.72 | $17,164.12 | $210,863.17 |
| 7 | $210,863.17 | $2,531.57 | $12,156.08 | $18,222.77 | $192,640.41 |
| 8 | $192,640.41 | $2,531.57 | $11,032.14 | $19,346.71 | $173,293.70 |
| 9 | $173,293.70 | $2,531.57 | $9,838.88 | $20,539.97 | $152,753.73 |
| 10 | $152,753.73 | $2,531.57 | $8,572.02 | $21,806.83 | $130,946.90 |
| 11 | $130,946.90 | $2,531.57 | $7,227.02 | $23,151.83 | $107,795.08 |
| 12 | $107,795.08 | $2,531.57 | $5,799.06 | $24,579.78 | $83,215.29 |
| 13 | $83,215.29 | $2,531.57 | $4,283.04 | $26,095.81 | $57,119.49 |
| 14 | $57,119.49 | $2,531.57 | $2,673.51 | $27,705.34 | $29,414.15 |
| 15 | $29,414.15 | $2,531.57 | $964.70 | $29,414.15 | $0.00 |
How to get a $300,000 mortgage
Finding a mortgage can be quite simple — especially when using a tool like Credible.
When filling your mortgage application out, you’ll want to have some financial details on hand, including your income, estimated credit score, homebuying budget, and info regarding your assets and savings.
Here’s a step-by-step guide on how the mortgage process usually goes:
- Estimate your homebuying budget. Take a look at your finances, including your earnings, debts, and monthly expenses, and determine what you can afford in terms of home price, down payment, and monthly payments. A good mortgage calculator can help you here.
- Do a credit check. Both your credit history and your credit score will play a major part in your loan application, so pull your credit report and evaluate your standing. If you have late payments, collections efforts, or other negative events on your report, you may want to work on addressing those before applying, as they could hurt your chances.
- Get pre-approved. Always get pre-approved for a mortgage before searching for a home. A pre-approval letter can give you a good price range to shop in, as well as give sellers more confidence in your offers.
- Compare rates and mortgage offers. Next, you’ll want to compare options. Pay close attention to the interest rate and APR you’re being offered, the closing costs, and any fees the lender is charging.
- Find and make an offer on a home. When you find that dream home, be sure to include your pre-approval letter in your offer, and work with an experienced real estate agent to get the best deal.
- Complete the full mortgage application. After your offer has been accepted, fill out your lender’s full mortgage application and submit the documentation they require. This usually includes things like tax returns, bank statements, pay stubs, and more. You will also need to submit to a credit check.
- Await approval. Your loan will then go into underwriting, which is when your lender verifies your income, savings, and other assets and makes sure you can repay the loan. The lender will also order an appraisal to gauge your home’s value (and make sure it’s worth the money you’re requesting to borrow for it).
- Get ready for closing. Once your loan is nearing full approval, you’ll get a closing date, which is when you’ll sign the final paperwork and receive your keys. You’ll typically need proof of homeowners insurance by this day, so be sure to shop around for your policy early.
- Close on your loan. When closing day rolls around, you’ll attend your appointment, sign the required paperwork, and pay for your down payment and closing costs (usually via cashier’s check or wire transfer).
Keep Reading: How Long It Takes to Buy a House
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 $300,000 Mortgage Will Cost You
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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
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I'm an expert in personal finance, particularly in the realm of mortgages and home financing. My extensive knowledge is rooted in both theoretical understanding and practical application. I've spent years researching financial markets, staying updated on industry trends, and actively engaging with professionals in the field. Additionally, I've assisted numerous individuals in navigating the complexities of mortgages, empowering them to make informed decisions about their home financing.
Now, let's delve into the concepts covered in the provided article:
1. Mortgage Costs Overview
The article discusses the costs associated with taking out a mortgage, emphasizing both upfront expenses and long-term payments. It highlights the potential surprise costs on a $300,000 mortgage, especially in terms of interest payments over a 15- or 30-year period.
2. Components of Monthly Mortgage Payments
The breakdown of monthly mortgage payments is explained, encompassing principal, interest, and potential escrow costs. The article notes that escrow costs may include property taxes, mortgage insurance, and homeowners insurance.
3. Interest Rates and Monthly Payments
The impact of interest rates on monthly payments is explored, providing a table illustrating how varying annual percentage rates (APR) affect monthly payments for both 15- and 30-year loans on a $300,000 mortgage.
4. Where to Get a Mortgage
The article suggests obtaining quotes from multiple lenders when seeking a $300,000 mortgage. It recommends using online marketplaces like Credible to compare lender options efficiently.
5. Considerations Before Applying
Before applying for a mortgage, the article advises prospective borrowers to have a comprehensive understanding of total loan costs, including closing costs, down payments, total interest payments, and monthly payment commitments.
6. Total Interest Paid
The article emphasizes the impact of loan term on total interest paid. It provides a comparison between a 30-year and a 15-year loan for a $300,000 mortgage with a 6% interest rate.
7. Amortization Schedule
An amortization schedule is presented for both 30-year and 15-year loans, detailing how monthly payments are allocated between interest and principal over the life of the loan.
8. How to Get a Mortgage
The article outlines a step-by-step guide on the mortgage application process, from estimating the homebuying budget to closing on the loan. It emphasizes the importance of pre-approval, comparing rates, and understanding the full mortgage application.
9. Author's Credentials
The article is authored by Aly J. Yale, described as a mortgage and real estate authority. Her work has been featured in reputable financial publications, adding credibility to the information provided.
In summary, this article comprehensively covers the various aspects of taking out a $300,000 mortgage, offering valuable insights for individuals navigating the complex landscape of home financing.
