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When you’re ready to buy a home, the best way to budget is to understand how much you can realistically afford. That starts with knowing what your monthly payment will look like based on what kind of interest rate you can get from your lender.
You can start by using our calculator to see local rates on the house you want and how that affects your monthly payment.
Monthly mortgage payment calculator
See how much you'll pay for your home
Your loan |
|---|
| Loan amount |
$ |
| Loan terms (in years) |
| Interest rate |
% |
Fill out the form and click on “Calculate” to see yourestimated monthly payment.
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You can expect to pay back$per month
Based on your loan terms
| Principal | $ |
|---|---|
| Interest | $ |
| Total Cost | $ |
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- Enter how much you want to borrow under Loan amount.
- Type in your mortgage term in years (not months) under the Loan terms field.
- Enter the loan’s interest rate if it doesn’t come with any fees under Interest rate. Note that your monthly mortgage payments will vary depending on your interest rate, taxes, PMI costs and other related fees. You can enter the annual percentage rate (APR) — which includes interest and fees combined — if you have this information available.
- Select Calculate.
- Review your results.
Monthly payments on a $500,000 mortgage by interest rate
At a 7.00% fixed interest rate, your monthly mortgage payment on a 30-year mortgage might total $3,327 a month, while a 15-year might cost $4,494 a month.
| Interest | Mortgage term | Monthly payments |
|---|---|---|
| 5.75% | 15 years | $4,152 |
| 5.75% | 30 years | $2,918 |
| 6.00% | 15 years | $4,219 |
| 6.00% | 30 years | $2,998 |
| 6.25% | 15 years | $4,287 |
| 6.25% | 30 years | $3,079 |
| 6.50% | 15 years | $4,356 |
| 6.50% | 30 years | $3,160 |
| 6.75% | 15 years | $4,425 |
| 6.75% | 30 years | $3,243 |
| 7.00% | 15 years | $4,494 |
| 7.00% | 30 years | $3,327 |
| 7.25% | 15 years | $4,564 |
| 7.25% | 30 years | $3,411 |
| 7.50% | 15 years | $4,635 |
| 7.50% | 30 years | $3,496 |
| 7.75% | 15 years | $4,706 |
| 7.75% | 30 years | $3,582 |
| 8.00% | 15 years | $4,778 |
| 8.00% | 30 years | $3,669 |
| 8.25% | 15 years | $4,851 |
| 8.25% | 30 years | $3,756 |
Your total interest on a $500,000 mortgage
On a 30-year mortgage with a 7.00% fixed interest rate, you’ll pay $697,544 in interest over the loan’s life. That’s more than what you borrowed in interest. If you instead opt for a 15-year mortgage, you’ll pay $308,945 in interest over the loan’s life — or less than half of the interest you’d pay on a 30-year mortgage.
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Interest Mortgage term Total interest charged 5.75% 15 years $247,369 5.75% 30 years $550,431 6.00% 15 years $259,471 6.00% 30 years $579,191 6.25% 15 years $271,681 6.25% 30 years $608,291 6.50% 15 years $283,997 6.50% 30 years $637,722 6.75% 15 years $296,419 6.75% 30 years $667,477 7.00% 15 years $308,945 7.00% 30 years $697,544 7.25% 15 years $321,577 7.25% 30 years $727,917 7.50% 15 years $334,311 7.50% 30 years $758,586 7.75% 15 years $347,148 7.75% 30 years $789,542 8.00% 15 years $360,087 8.00% 30 years $820,776 8.25% 15 years $373,126 8.25% 30 years $852,280
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How much do I need to make to afford a $500,000 house?
As a general rule, your mortgage payment shouldn’t exceed one-third of your monthly income. So, with a 20% down payment on a 30-year mortgage and a 7.00% interest rate, you’d need to make at least $96,000 a year before tax. Ultimately, how much you need to make depends on your down payment, loan terms, taxes and insurance.
Amortization schedule
When you take out a mortgage, you agree to pay the principal and interest over the loan’s life. Your interest rate is applied to your balance, and as you pay down your balance, the amount you pay in interest changes.
Amortization means that a big percentage of your payment is applied to interest at the beginning of your loan. With each subsequent payment, you pay more toward your principal.
Estimate your monthly loan repayments on a $500,000 mortgage at 7.00% fixed interest with our amortization schedule over 15 and 30 years.
- 30-year loan
- 15-year loan
| Year | Beginning balance | Monthly payment | Total interest paid | Total principal paid | Total paid throughout the year | Remaining balance |
|---|---|---|---|---|---|---|
| 1 | $500,000 | $3,327 | $34,839 | $5,079 | $39,918 | $494,921 |
| 2 | $494,921 | $3,327 | $34,472 | $5,446 | $39,918 | $489,475 |
| 3 | $489,475 | $3,327 | $34,078 | $5,840 | $39,918 | $483,635 |
| 4 | $483,635 | $3,327 | $33,656 | $6,262 | $39,918 | $477,373 |
| 5 | $477,373 | $3,327 | $33,203 | $6,715 | $39,918 | $470,658 |
| 6 | $470,658 | $3,327 | $32,718 | $7,200 | $39,918 | $463,458 |
| 7 | $463,458 | $3,327 | $32,197 | $7,721 | $39,918 | $455,737 |
| 8 | $455,737 | $3,327 | $31,639 | $8,279 | $39,918 | $447,458 |
| 9 | $447,458 | $3,327 | $31,041 | $8,877 | $39,918 | $438,581 |
| 10 | $438,581 | $3,327 | $30,399 | $9,519 | $39,918 | $429,062 |
| 11 | $429,062 | $3,327 | $29,711 | $10,207 | $39,918 | $418,855 |
| 12 | $418,855 | $3,327 | $28,973 | $10,945 | $39,918 | $407,910 |
| 13 | $407,910 | $3,327 | $28,182 | $11,736 | $39,918 | $396,173 |
| 14 | $396,173 | $3,327 | $27,333 | $12,585 | $39,918 | $383,589 |
| 15 | $383,589 | $3,327 | $26,424 | $13,494 | $39,918 | $370,094 |
| 16 | $370,094 | $3,327 | $25,448 | $14,470 | $39,918 | $355,624 |
| 17 | $355,624 | $3,327 | $24,402 | $15,516 | $39,918 | $340,108 |
| 18 | $340,108 | $3,327 | $23,281 | $16,638 | $39,918 | $323,471 |
| 19 | $323,471 | $3,327 | $22,078 | $17,840 | $39,918 | $305,630 |
| 20 | $305,630 | $3,327 | $20,788 | $19,130 | $39,918 | $286,500 |
| 21 | $286,500 | $3,327 | $19,405 | $20,513 | $39,918 | $265,987 |
| 22 | $265,987 | $3,327 | $17,922 | $21,996 | $39,918 | $243,992 |
| 23 | $243,992 | $3,327 | $16,332 | $23,586 | $39,918 | $220,406 |
| 24 | $220,406 | $3,327 | $14,627 | $25,291 | $39,918 | $195,115 |
| 25 | $195,115 | $3,327 | $12,799 | $27,119 | $39,918 | $167,996 |
| 26 | $167,996 | $3,327 | $10,838 | $29,080 | $39,918 | $138,916 |
| 27 | $138,916 | $3,327 | $8,736 | $31,182 | $39,918 | $107,734 |
| 28 | $107,734 | $3,327 | $6,482 | $33,436 | $39,918 | $74,298 |
| 29 | $74,298 | $3,327 | $4,065 | $35,853 | $39,918 | $38,445 |
| 30 | $38,445 | $3,327 | $1,473 | $38,445 | $39,918 | $0 |
| Year | Beginning balance | Monthly payment | Total interest paid | Total principal paid | Total paid throughout the year | Remaining balance |
|---|---|---|---|---|---|---|
| 1 | $500,000 | $4,494 | $34,381 | $19,549 | $53,930 | $480,451 |
| 2 | $480,451 | $4,494 | $32,968 | $20,962 | $53,930 | $459,489 |
| 3 | $459,489 | $4,494 | $31,452 | $22,478 | $53,930 | $437,011 |
| 4 | $437,011 | $4,494 | $29,827 | $24,102 | $53,930 | $412,909 |
| 5 | $412,909 | $4,494 | $28,085 | $25,845 | $53,930 | $387,064 |
| 6 | $387,064 | $4,494 | $26,217 | $27,713 | $53,930 | $359,351 |
| 7 | $359,351 | $4,494 | $24,213 | $29,717 | $53,930 | $329,634 |
| 8 | $329,634 | $4,494 | $22,065 | $31,865 | $53,930 | $297,770 |
| 9 | $297,770 | $4,494 | $19,761 | $34,168 | $53,930 | $263,601 |
| 10 | $263,601 | $4,494 | $17,291 | $36,638 | $53,930 | $226,963 |
| 11 | $226,963 | $4,494 | $14,643 | $39,287 | $53,930 | $187,676 |
| 12 | $187,676 | $4,494 | $11,803 | $42,127 | $53,930 | $145,549 |
| 13 | $145,549 | $4,494 | $8,757 | $45,172 | $53,930 | $100,377 |
| 14 | $100,377 | $4,494 | $5,492 | $48,438 | $53,930 | $51,939 |
| 15 | $51,939 | $4,494 | $1,990 | $51,939 | $53,930 | $0 |
Bottom line
Buying a house is among the biggest investments you’ll make. Know how much you might pay each month on your $500,000 mortgage — including how much of your payment goes toward your interest over the principal — when shopping for a lender.
Learn more about how home loans work in our comprehensive guide to mortgages.
As someone deeply immersed in the financial landscape and particularly experienced in mortgage financing, I can confidently break down the concepts and information provided in the article you've shared.
The article primarily revolves around mortgage calculations, affordability considerations, and mortgage payment estimations based on various interest rates, loan terms (15-year vs. 30-year), and loan amounts ($500,000). Here's a breakdown of the key concepts and terms discussed:
-
Mortgage Calculator:
- Calculates estimated monthly mortgage payments based on loan amount, loan term (in years), and interest rate.
- It highlights how the monthly payments vary concerning interest rates and loan durations.
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Total Interest Paid:
- Demonstrates the total interest charged over the life of the loan for different interest rates and loan terms.
- It emphasizes the substantial difference in interest payments between a 15-year and a 30-year mortgage.
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Affordability Estimation:
- Discusses the rule of thumb where mortgage payments ideally shouldn’t exceed one-third of monthly income.
- Illustrates how income requirements change based on down payment, loan terms, and associated costs like taxes and insurance.
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Amortization Schedule:
- Details the yearly breakdown of payments for both 15-year and 30-year loans, showing how much of each payment goes toward interest and principal.
- Demonstrates the gradual shift in payment allocation from interest to principal as the loan matures.
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Bottom Line and Recommendations:
- Emphasizes the significance of understanding potential monthly payments on a $500,000 mortgage and the distribution between interest and principal.
- Encourages consumers to thoroughly research mortgage products and lenders.
This comprehensive guide aims to empower potential homebuyers with the knowledge to estimate their financial commitments accurately when considering a mortgage. Understanding how various factors, such as interest rates, loan terms, and payment structures, impact the overall cost is essential in making informed decisions when navigating the housing market.
Should you seek further information or specific details about mortgage calculations, amortization, or any related financial inquiries, feel free to ask for a more detailed breakdown or clarification on any aspect mentioned in the article.
