How Much a $250,000 Mortgage Will Cost You (2024)

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.

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.

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.

Use our to determine the full cost of your loan.

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

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: 20- 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.

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.

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

Year

Beginning balance

Monthly payment

Total interest paid

Total principal paid

Remaining balance

250,000.00

$1,498.88

$14,916.49

$3,070.03

$246,929.97

$1,498.88

$14,727.13

$3,259.38

$243,670.59

$1,498.88

$14,526.10

$3,460.41

$240,210.18

$1,498.88

$14,312.67

$3,673.84

$236,536.33

$1,498.88

$14,086.08

$3,900.44

$232,635.89

$1,498.88

$13,845.51

$4,141.01

$228,494.88

$1,498.88

$13,590.10

$4,396.42

$224,098.46

$1,498.88

$13,318.94

$4,667.58

$219,430.89

$1,498.88

$13,031.05

$4,955.47

$214,475.42

$1,498.88

$12,725.41

$5,261.11

$209,214.31

$1,498.88

$12,400.91

$5,585.60

$203,628.71

$1,498.88

$12,056.41

$5,930.11

$197,698.60

$1,498.88

$11,690.65

$6,295.87

$191,402.74

$1,498.88

$11,302.34

$6,684.18

$184,718.56

$1,498.88

$10,890.07

$7,096.45

$177,622.11

$1,498.88

$10,452.38

$7,534.14

$170,087.97

$1,498.88

$9,987.69

$7,998.83

$162,089.14

$1,498.88

$9,494.34

$8,492.18

$153,596.97

$1,498.88

$8,970.56

$9,015.96

$144,581.01

$1,498.88

$8,414.47

$9,572.04

$135,008.97

$1,498.88

$7,824.09

$10,162.42

$124,846.54

$1,498.88

$7,197.29

$10,789.22

$114,057.32

$1,498.88

$6,531.84

$11,454.68

$102,602.64

$1,498.88

$5,825.34

$12,161.18

$90,441.47

$1,498.88

$5,075.27

$12,911.25

$77,530.22

$1,498.88

$4,278.93

$13,707.59

$63,822.63

$1,498.88

$3,433.47

$14,553.04

$49,269.59

$1,498.88

$2,535.87

$15,450.64

$33,818.95

$1,498.88

$1,582.91

$16,403.60

$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	$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

Year

Beginning balance

Monthly payment

Total interest paid

Total principal paid

Remaining balance

$250,000

$2,109.64

$14,711.54

$10,604.17

$239,395.83

$2,109.64

$14,057.49

$11,258.21

$228,137.62

$2,109.64

$13,363.11

$11,952.59

$216,185.03

$2,109.64

$12,625.90

$12,689.80

$203,495.23

$2,109.64

$11,843.22

$13,472.48

$190,022.75

$2,109.64

$11,012.27

$14,303.43

$175,719.31

$2,109.64

$10,130.07

$15,185.64

$160,533.67

$2,109.64

$9,193.45

$16,122.26

$144,411.42

$2,109.64

$8,199.06

$17,116.64

$127,294.78

$2,109.64

$7,143.35

$18,172.36

$109,122.42

$2,109.64

$6,022.52

$19,293.19

$89,829.23

$2,109.64

$4,832.55

$20,483.15

$69,346.08

$2,109.64

$3,569.20

$21,746.51

$47,599.57

$2,109.64

$2,227.92

$23,087.78

$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 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.

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Monthly payments for different mortgage amounts

How Much a $100,000 Mortgage Will Cost You

By Aly J. Yale

FAQs

How Much a $250,000 Mortgage Will Cost You? ›

Monthly payments for a $250,000 mortgage

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How much a month would a 250k mortgage cost? ›

If you secure a 7% fixed interest rate and a 30-year loan term, you'll pay about $348,772 in interest when all is said and done. Your monthly mortgage payment would amount to $1,663 (without insurance and property taxes).

What credit score do you need for a 250k mortgage? ›

What credit score do you need to get a mortgage? Mortgage lenders typically want to see a score of 620 or better before approving a conventional mortgage. There are government-insured mortgages if your score is lower, and if your score is 760 or higher you'll qualify for the best interest rates.

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What house can I afford on 40K a year? ›

If you have minimal or no existing monthly debt payments, between $103,800 and $236,100 is about how much house you can afford on $40K a year. Exactly how much you spend on a house within that range depends on your financial situation and how much down payment you can afford to invest.

Learn More Now ›

What is the 2.5 rule in buying a house? ›

For example, some experts say you should spend no more than 2x to 2.5x your gross annual income on a mortgage (so if you earn $60,000 per year, the mortgage size should be at most $150,000). Other rules suggest you shouldn't spend more than 28-29% of your gross income per month on housing.

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How much would you pay a month for a 250k 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. 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.

What is the monthly repayment on a $250,000 mortgage? ›

As a rough guide, for a £250,000 mortgage at 5% interest over 25 years, you'd be looking at repayments of approximately £1461 per month. However, it's essential to use a mortgage calculator for precise figures and to consult with a broker or lender.

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What is the interest rate today? ›

Current mortgage and refinance interest rates

Product	Interest Rate	APR
30-Year Fixed Rate	7.04%	7.09%
20-Year Fixed Rate	6.85%	6.90%
15-Year Fixed Rate	6.53%	6.60%
10-Year Fixed Rate	6.39%	6.46%

5 more rows

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What would a 200K mortgage cost per month? ›

At a 7% interest rate, a 30-year fixed $200K mortgage has a monthly payment amount of $1,331, while a 15-year fixed $200K mortgage at the same interest rate has a monthly payment amount of $1,798.

How to pay off a 250k mortgage in 5 years? ›

There are some easy steps to follow to make your mortgage disappear in five years or so.

Setting a Target Date. ...
Making a Higher Down Payment. ...
Choosing a Shorter Home Loan Term. ...
Making Larger or More Frequent Payments. ...
Spending Less on Other Things. ...
Increasing Income.

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How much house can I afford for $5000 a month? ›

How Much House Can You Afford?

Monthly Pre-Tax Income	Remaining Income After Average Monthly Debt Payment	Maximum Monthly Mortgage Payment (including Property Taxes and Insurance) with the 36% Rule
$4,000	$3,400	$840
$5,000	$4,400	$1,200
$6,000	$5,400	$1,560
$7,000	$6,400	$1,920

4 more rows

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What would a $40,000 mortgage payment be? ›

At the time of writing (May 2024) the average monthly repayments on a £40,000 mortgage are £234. This is based on current interest rates being around 5%, a typical mortgage term of 25 years, and opting for a capital repayment mortgage. Based on this, you would repay £70,151 by the end of your mortgage term.