Q:What is the monthly mortgage payment on a $300,000 mortgage?
A:A mortgage payment consists of principal, interest, taxes, and insurance. This is assuming you are paying your interest and taxes through your mortgage, as commonly is the case, and not on your own. To determine your mortgage payment on a $300,000 mortgage, you need the following information:
- Principal: This is the amount you will be borrowing, which is $300,000.
- Term: The term is the number of years that it takes to pay your mortgage in full. The most common mortgage terms are the 30 years and 15 years. Other terms that lenders may offer are 10, 20, 25, 40, and even 50 years. The lower the term, the higher your payment since you will be paying off the mortgage in a shorter period.
- Interest Rate: The interest rate is what your lender charges to allow you to borrower. Interest rates are determined by things like your credit score, down payment, debts, and income. The better your financial situation and credit history, the better the interest rate you will likely receive. Below is a sampling of some of the current rates.
|3-month trend||30-year fixed||15-year fixed||5/1 ARM||30-year jumbo|
- Taxes: Most people pay their property taxes through their mortgage payment. These taxes are determined by the tax assessor where your property is located and are based on the taxable value of your property.
- Homeowners Insurance: Lenders typical require coverage of at least the amount you borrower (loan amount). People typically pay their homeowners insurance as part of their mortgage payment.
- Mortgage Insurance: If you put down less than a 20% down payment, you will likely be paying mortgage insurance. Borrowers putting down less than 20% are seen as being riskier than people who put down 20% or more. Lenders require mortgage insurance to help protect them in a situation where the borrower stops making payment. While mortgage insurance protects the lender, the borrower has to pay the insurance. Mortgage insurance is commonly included in the mortgage payment, if applicable.
You should take all of the above information into account when determining your payment on a $300,000 mortgage. Please use the below mortgage calculator to calculate your estimated principal and interest payment. Be sure to add your monthly taxes and insurance payments to this figure.