By Kim Franke-Folstad ·February 26, 2024 · 9 minute read
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Monthly payments on a $100,000 mortgage could range from $600 to around $1,000, depending on the loan’s interest rate, term, and other factors. But it’s also important to think about how much borrowing $100,000 will cost you over time, and to pay attention to all your costs as you move forward with your home purchase. Some costs may be negotiable, and a little comparison shopping could help you save. Read on for a breakdown of what the costs related to borrowing $100,000 might be.
What Will a $100,000 Mortgage Cost?
There are several different expenses you can expect to encounter when taking out a mortgage. Most of the time, they can be divided into three main categories.
Closing Costs
Closing costs, which you’ll pay upfront, typically include loan processing fees, third-party services such as appraisals and title insurance, and government fees and taxes. You also may choose to pay mortgage points (also known as discount points) on your loan to lower the interest rate. Closing costs can vary significantly, but they generally range from 3% to 6% of the loan amount.
Monthly Payments
Monthly mortgage payments, which are paid over the life of your loan, usually include two primary components:
• Principal: This is the portion of your mortgage payment that goes directly toward paying back the amount you borrowed.
• Interest: This is the amount the lender charges you for borrowing money. The amount of interest you pay each month will be calculated by multiplying your interest rate by your remaining loan balance.
Escrow
Some homebuyers may also have a third amount, called escrow, factored into their closing costs and/or monthly payments. Lenders often collect and hold money in an escrow account to ensure critical bills like homeowners insurance and property taxes are paid on time.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.
What Would the Monthly Payment Be for a $100,000 Mortgage
We’ll keep things simple and eliminate the costs associated with an escrow account to get an idea of what a $100,000 mortgage payment might look like each month.
Let’s say you wanted to purchase a home for $120,000, and you had $20,000 for a down payment. If your lender offered you a 7% annual percentage rate (APR) on a 15-year loan for $100,000, you could expect your monthly payment — principal and interest — to be about $898. If you had a 30-year loan with a 7% APR, a $100,000 mortgage payment could be about $665 per month.
Here are some more examples that show the difference between a 15-year loan vs. a 30-year loan, using a mortgage calculator:
| APR | Payment with 15-year Loan | Payment with 30-year Loan |
|---|---|---|
| 5.5% | $817 | $817 |
| 6.5% | $871 | $632 |
| 7.5% | $927 | $699 |
How Much Interest Will You Pay on a $100,000 Mortgage?
The interest rate your lender offers can make a big difference in the overall cost of your mortgage. So can the mortgage term you choose. On a $100,000 mortgage at a 7% APR, for example, your total interest costs could range from $61,789 to $139,509, depending on the length of the loan you choose (15 vs. 30 years).
Stretching your mortgage payments over a longer term can lower your monthly payment, but you can expect to pay more for the loan overall. If you start out with a 30-year term and find your budget can handle larger payments, you can always consider a mortgage refinance or a recast to adjust your payment amount and schedule.
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How Does Amortization Work on a $100,000 Mortgage?
Though your payment will remain the same every month (if you have a fixed-rate loan, you can expect the amount you’ll pay each month toward interest vs. principal to change over the life of your home loan. In the first years, the majority of your payment will go toward interest. But as your balance goes down, more of your payment will go toward principal.
Your lender should provide you with a repayment schedule, or mortgage amortization schedule, that shows you how the proportions will change over the length of your loan.
Here’s what the amortization schedules for a $100,000 mortgage with 30- and 15-year terms might look like. (Keep in mind that your payments may include other costs besides principal and interest.)
| Year | Amount Paid | Interest Paid | Principal Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $7,983.63 | $6,967.82 | $1,015.81 | $98,984.19 |
| 2 | $7,983.63 | $6,894.39 | $1,089.24 | $97,894.95 |
| 3 | $7,983.63 | $6,815.65 | $1,167.98 | $96,726.96 |
| 4 | $7,983.63 | $6,731.21 | $1,252.42 | $95,474.55 |
| 5 | $7,983.63 | $6,640.67 | $1,342.96 | $94,131.59 |
| 6 | $7,983.63 | $6,543.59 | $1,440.04 | $92,691.55 |
| 7 | $7,983.63 | $6,439.49 | $1,544.14 | $91,147.41 |
| 8 | $7,983.63 | $6,327.87 | $1,655.76 | $89,491.65 |
| 9 | $7,983.63 | $6,208.17 | $1,775.46 | $87,716.19 |
| 10 | $7,983.63 | $6,079.82 | $1,903.81 | $85,812.38 |
| 11 | $7,983.63 | $5,942.20 | $2,041.43 | $83,770.95 |
| 12 | $7,983.63 | $5,794.62 | $2,189.01 | $81,581.94 |
| 13 | $7,983.63 | $5,636.38 | $2,347.25 | $79,234.69 |
| 14 | $7,983.63 | $5,466.69 | $2,516.94 | $76,717.75 |
| 15 | $7,983.63 | $5,284.74 | $2,698.89 | $74,018.87 |
| 16 | $7,983.63 | $5,089.64 | $2,893.99 | $71,124.88 |
| 17 | $7,983.63 | $4,880.44 | $3,103.19 | $68,021.68 |
| 18 | $7,983.63 | $4,656.11 | $3,327.52 | $64,694.16 |
| 19 | $7,983.63 | $4,415.56 | $3,568.07 | $61,126.09 |
| 20 | $7,983.63 | $4,157.62 | $3,826.01 | $57,300.08 |
| 21 | $7,983.63 | $3,881.04 | $4,102.59 | $53,197.49 |
| 22 | $7,983.63 | $3,584.46 | $4,399.17 | $48,798.32 |
| 23 | $7,983.63 | $3,266.45 | $4,717.18 | $44,081.14 |
| 24 | $7,983.63 | $2,925.44 | $5,058.19 | $39,022.95 |
| 25 | $7,983.63 | $2,559.78 | $5,423.85 | $33,599.10 |
| 26 | $7,983.63 | $2,167.69 | $5,815.94 | $27,783.17 |
| 27 | $7,983.63 | $1,747.26 | $6,236.37 | $21,546.80 |
| 28 | $7,983.63 | $1,296.43 | $6,687.20 | $14,859.60 |
| 29 | $7,983.63 | $813.01 | $7,170.62 | $7,688.98 |
| 30 | $7,983.63 | $294.65 | $7,688.98 | $0 |
| Year | Amount Paid | Interest Paid | Principal Paid | Remaining Balance |
|---|---|---|---|---|
| 1 | $10,785.94 | $6,876.14 | $3,909.80 | $96,090.20 |
| 2 | $10,785.94 | $6,593.50 | $4,192.44 | $91,897.76 |
| 3 | $10,785.94 | $6,290.43 | $4,495.51 | $87,402.26 |
| 4 | $10,785.94 | $5,965.45 | $4,820.49 | $82,581.77 |
| 5 | $10,785.94 | $5,616.98 | $5,168.96 | $77,412.80 |
| 6 | $10,785.94 | $5,243.31 | $5,542.63 | $71,870.17 |
| 7 | $10,785.94 | $4,842.63 | $5,943.31 | $65,926.87 |
| 8 | $10,785.94 | $4,412.99 | $6,372.95 | $59,553.92 |
| 9 | $10,785.94 | $3,952.29 | $6,833.65 | $52,720.27 |
| 10 | $10,785.94 | $3,458.29 | $7,327.65 | $45,392.62 |
| 11 | $10,785.94 | $2,928.57 | $7,857.37 | $37,535.25 |
| 12 | $10,785.94 | $2,360.56 | $8,425.38 | $29,109.87 |
| 13 | $10,785.94 | $1,751.49 | $9,034.45 | $20,075.42 |
| 14 | $10,785.94 | $1,098.39 | $9,687.55 | $10,387.87 |
| 15 | $10,785.94 | $398.07 | $10,387.87 | $0 |
Where Can You Get a $100,000 Mortgage?
Homebuyers have options when they’re deciding where to go for a loan, including online banks and lenders, traditional banks, and credit unions. Because lenders’ rates and terms may vary, it can be a good idea to shop around for a mortgage that’s a good fit for your needs and goals.
Before you start getting mortgage estimates, you may want to sit down and figure out the different types of mortgages you’re interested in and what you might qualify for. Would you be better off with a conventional mortgage or a government-backed loan? Are you looking for a fixed or adjustable mortgage rate? Do you want a 15-, 20-, or 30-year mortgage? Some lenders specialize in certain kinds of loans, such as government-backed loans. And some loans may have less stringent standards for down payment amounts or a borrower’s credit score. Once you start comparison shopping, you may want to read some online reviews of the lenders you’re considering.
💡 Quick Tip: Generally, the lower your debt-to-income ratio, the better loan terms you’ll be offered. One way to improve your ratio is to increase your income (hello, side hustle!). Another way is to consolidate your debt and lower your monthly debt payments.
How to Get a $100,000 Mortgage
Feeling a little overwhelmed by the whole home-buying and mortgage process? Breaking it down into a few manageable steps may make things a little less daunting. If you’ve never bought a home before, spend some time studying up with a first-time homebuyer guide.
First, Figure Out What You Can Afford
Looking at your income, debts, monthly spending, and how much you’ve saved for a down payment can be a good place to start. This will help you determine how much of a down payment you can handle and how much house you can afford.
Look at Different Loans and Lenders
Once you know what you can afford, you can start looking for the loan type, interest rate, loan term, and lender that meet your needs.
Get Preapproved
Once you’ve decided on loan and lender, it can be a good idea to go through the preapproval process. Getting a letter from your lender that says you’re preapproved for a certain loan amount lets sellers know you’re a serious buyer (and can come in handy in a bidding war.)
Time to Go House Hunting
Once you’ve done your homework, you can search for and make an offer on a house. And since you already know how much you can afford, you can target homes in that range.
Submit a Full Mortgage Application
When you’re ready to seal the deal, be prepared to give your lender more financial information and documentation for a formal loan application.
Prepare for Closing
While you’re waiting for a final loan approval and a closing date, you can shop for homeowners insurance, get a home inspection, and make sure you have all the money you need for your down payment and closing costs.
Take Ownership of Your New Home
At the closing you can sign all the necessary paperwork, hand over the funds needed to make the purchase, and—congratulations!–get the keys to your new home.
Recommended: 2024 Home Loan Help Center
The Takeaway
Researching the different expenses you might have to pay when taking out a $100,000 mortgage can help you stick to your budget and avoid unpleasant surprises. The choices you make about the type of loan you get, the interest rate, loan term, and other costs, will all affect how much you pay every month — and over the length of the loan.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How much is a $100,000 mortgage a month?
The monthly payment for a $100,000 mortgage could range from $600 to around $1,000, depending on several factors, including the interest rate and loan term.
How much income is required for a $100,000 mortgage?
You’ll probably need to earn around $40,000 a year (before taxes) to get a $100,000 mortgage. But lenders will look at several factors, besides your income, to determine if you can afford a $100,000 mortgage. You can expect to be asked about your debt, credit history, assets, and the down payment you plan to make.
How much is a down payment on a $100,000 mortgage?
If you wanted to make a 20% down payment (thereby avoiding paying for mortgage insurance), you would put down around $25,000 on a $100,000 mortgage. But a down payment could be as low as 3% in some cases (around $4,000), and may vary depending on the price of the house you choose and the type of loan you get.
Can I afford a $100,000 mortgage with a $70,000 salary?
As long as all your monthly debt payments combined — including your house payment, credit cards, student loans, and car payments — are less than $2,100, you may be able to afford a $100,000 mortgage on a $70,000 salary.
Photo credit: iStock/Hispanolistic
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circ*mstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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