Monthly payment on a $350,000 mortgage ranges from roughly $1,670 to $2,100, depending on your interest rate and loan term

The exact amount depends on three things: your interest rate, how many years you borrow for, and whether you have a fixed or adjustable rate. A 30-year loan at 6.5% costs about $2,210 per month in principal and interest alone. The same loan at 5% costs about $1,878. At 7.5%, it climbs to $2,594. These numbers shift with every quarter-point change in rate.

Your actual monthly payment will be higher than the principal-and-interest figure because it includes property taxes, homeowners insurance, and possibly mortgage insurance (PMI). Those costs vary by location and your down payment size. A property tax bill in one county might be double another's. This section focuses on the loan payment itself; the sections below show you how to account for the rest.

Key Takeaways

  • A $350,000 mortgage at 6% interest over 30 years costs $2,099 per month in principal and interest alone.
  • Lowering your interest rate by one percentage point saves roughly $200 per month; raising it costs the same.
  • Choosing a 15-year loan instead of 30 years nearly doubles your monthly payment but cuts total interest paid in half.
  • Property taxes, insurance, and PMI can add $400 to $800 or more to your monthly bill, depending on location and down payment.
  • Your actual payment is locked in only if you have a fixed-rate mortgage; adjustable rates change after the initial period.

How interest rate changes affect your payment

Every 0.5% change in interest rate shifts your monthly payment by roughly $100 on a $350,000 loan. At 5.5%, you pay about $1,987 per month. At 6.5%, that becomes $2,211. At 7.5%, it jumps to $2,594. These are principal-and-interest payments only, not including taxes and insurance.

The reason the change feels steep is that interest compounds over 30 years. A 1% difference in rate means you pay tens of thousands more in total interest over the life of the loan. On a $350,000 mortgage, the difference between 5% and 6% is roughly $60,000 in extra interest paid by the time the loan ends.

Your rate depends on your credit score, down payment size, loan type, and current market conditions. Lenders typically offer lower rates to borrowers with scores above 740 and down payments of 20% or more. If your score is lower or your down payment smaller, you will see a higher rate.

30-year versus 15-year loan terms

A 30-year loan spreads payments over twice as long, so each monthly payment is smaller. A 15-year loan compresses the same debt into half the time, so payments are much larger but you pay far less interest overall. On a $350,000 loan at 6%, the 30-year payment is $2,099 per month. The 15-year payment is $2,927 — about $828 more each month. Over the life of the loan, you pay roughly $130,000 less in total interest with the 15-year option.

The trade-off is cash flow. If you choose the 15-year term, that extra $828 per month is money you cannot use for other goals: emergency savings, retirement contributions, or paying down other debt. Some borrowers choose the 30-year payment but pay extra toward principal when they can, giving them flexibility if their income drops.

A few borrowers choose a 20-year term as a middle ground, though most lenders offer only 15 and 30 as standard options. Ask your lender what terms they offer; some will write a custom term if you request it.

Property taxes and insurance add significantly to your bill

Your monthly mortgage payment includes four parts: principal, interest, property taxes, and homeowners insurance. Lenders call this PITI. The principal and interest are fixed (on a fixed-rate loan), but taxes and insurance are not.

Property taxes vary wildly by location. In some counties, annual tax on a $350,000 home is $2,000. In others, it is $8,000 or more. That translates to $167 to $667 per month just for taxes. Homeowners insurance typically costs $800 to $1,500 per year, or $67 to $125 per month. Together, taxes and insurance can add $300 to $800 to your monthly payment depending on where the home is located.

When you get a loan estimate from a lender, it will show your property tax and insurance estimates based on the home address. Those estimates are not final — your actual taxes may be higher or lower when the county reassesses the property. If you are buying in a new area, ask locals or a real estate agent what the typical tax rate is.

Mortgage insurance (PMI) if you put down less than 20%

If your down payment is less than 20% of the home price, lenders require private mortgage insurance (PMI). This protects the lender if you stop paying; it does not protect you. On a $350,000 home with a 10% down payment ($35,000), you are borrowing $315,000, and PMI will cost roughly $150 to $300 per month depending on your credit score and the lender.

PMI is not permanent. Once you have paid down the loan to 80% of the original home value, you can request to have it removed. If you put down 10%, that means paying the loan down to $280,000. Depending on your interest rate and how quickly you pay, this can take 8 to 12 years. Some borrowers refinance when they reach 80% equity to remove PMI sooner.

If you are on the edge of a 20% down payment, it is worth calculating whether saving another few months to reach 20% is worth avoiding years of PMI payments. A mortgage professional can run the numbers for your specific situation.

Fixed-rate versus adjustable-rate mortgages

A fixed-rate mortgage locks your interest rate for the entire loan term — 30 years, 15 years, or whatever you choose. Your principal-and-interest payment never changes. Property taxes and insurance may rise, but the loan payment itself stays the same.

An adjustable-rate mortgage (ARM) starts with a lower interest rate for a set period — often 3, 5, 7, or 10 years — then adjusts annually or semi-annually based on market conditions. Your payment might be $1,800 for the first 5 years, then jump to $2,100 or higher when the rate adjusts. ARMs are riskier because you cannot predict your payment after the initial period ends.

Most borrowers choose fixed-rate mortgages because the payment is predictable and easier to budget for. ARMs can make sense if you plan to sell or refinance before the rate adjusts, but they require confidence in your income and willingness to absorb a payment increase if rates rise.

Using a mortgage calculator to estimate your actual payment

Online mortgage calculators let you enter your loan amount, interest rate, and term to see your exact principal-and-interest payment. Many also let you add estimated property taxes and insurance to see your full PITI payment. Bankrate, NerdWallet, and the Consumer Financial Protection Bureau all offer free calculators.

To use a calculator accurately, you need to know or estimate your interest rate. If you have not yet shopped for a loan, check current rates on mortgage comparison sites to get a realistic range. Rates change daily, so a quote from last week is not current. Once you have a rate estimate, plug it into the calculator along with your down payment size and location to see what your monthly payment would be.

A calculator shows you the math, but it does not account for every cost. Homeowners also pay HOA fees (if applicable), utilities, maintenance, and repairs. Budget for those separately when deciding whether a $350,000 mortgage fits your income.

Frequently Asked Questions

What income do I need to afford a $350,000 mortgage?

Most lenders use a debt-to-income ratio: your total monthly debt payments (including the mortgage) should not exceed 43% of your gross monthly income. On a $2,100 monthly payment, that means you need roughly $4,900 in gross monthly income, or about $59,000 per year. If you have other debts, you need higher income. This is a guideline, not a rule — some lenders go to 50%, others stay at 36%.

Can I pay off my mortgage faster by paying extra each month?

Yes. Extra payments go directly toward principal, which shortens the loan term and saves interest. If you pay an extra $200 per month on a 30-year loan, you can pay it off in roughly 20 years and save tens of thousands in interest. Check your loan documents to confirm there is no prepayment penalty, though most modern mortgages have none.

What happens to my payment if interest rates drop after I lock in my rate?

Your payment stays the same if you have a fixed-rate mortgage. You are locked in at your original rate for the entire loan. If rates drop significantly, you can refinance to a new loan at the lower rate, but refinancing has closing costs (typically 2% to 5% of the loan amount) that take time to recoup.

Does my credit score affect my mortgage payment?

Your credit score affects the interest rate you are offered, which directly changes your payment. A score above 740 typically qualifies for the best rates. A score below 620 may mean a rate 1% to 2% higher, which adds $200 to $400 per month on a $350,000 loan. Improving your score before applying can save thousands over the life of the loan.

What if I want to know my exact payment before I apply for a loan?

Get a rate quote from at least three lenders. They will give you a Loan Estimate (a required federal form) that shows your exact interest rate, principal-and-interest payment, estimated taxes and insurance, and all closing costs. This estimate is good for three days and gives you a real number to budget with, not a calculator estimate.